T-Mobile Wins Judgment Against Pre-Paid Traffickers
OWNED!!!
damn lol, poor dealers hahaah....it isn't surprising...a lot of dealers were buying tons of these prepaid packaged phones in Walmart and stores like this and selling the Sim Kit at around $25 which was the cost of the whole package then sell the phone on the side....
I guess it took T-Mobile long enough to catch these few guys but there are still tons out there.
I guess it took T-Mobile long enough to catch these few guys but there are still tons out there.
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I'm curious as to what they lost on? Resale is not illegal, and neither is unlocking phones.
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Yeah, I curious about that as well.
T-Mobile may hate what they were doing, but I don't see how it was wrong in any objective sense.
T-Mobile may hate what they were doing, but I don't see how it was wrong in any objective sense.
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Because the phones are subsidized and when you purchase them you are basically signing a verbal agreement that you will use the phone on prepaid service. You go into Target and buy one prepaid Nokia Tmobile isn't going to come after you, but you hit up 5 Targets and buy out all their $20 prepaid phones and resale them for a lot more and never activate service tmobile will take notice.
Tmobile looses money on those phones but makes it back on the service, just like every other carrier. They were basically stealing money from T-mobile.
Tmobile looses money on those phones but makes it back on the service, just like every other carrier. They were basically stealing money from T-mobile.
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But see, that's the point.
You are NOT "signing" a verbal agreement. You're not agreeing to activate the phone on a T-Mobile service plan. You're just buying a phone.
I understand that T-Mobile subsidizes the phones and that they lose money whenever someone does this, but it is NOT illegal. T-Mobile (and other carriers) basically take a big risk when they subsidize pre-paid phones, and it surprises me that they actually won this lawsuit. That's why I'm curious about the exact ruling, because I'd like to see how they presented their case.
I'm betting it's on some side technicality, and not actually on the issue of purchasing and reselling pre-paid phones. They probably claimed that their brand was being harmed or something, and ...
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You are NOT "signing" a verbal agreement. You're not agreeing to activate the phone on a T-Mobile service plan. You're just buying a phone.
I understand that T-Mobile subsidizes the phones and that they lose money whenever someone does this, but it is NOT illegal. T-Mobile (and other carriers) basically take a big risk when they subsidize pre-paid phones, and it surprises me that they actually won this lawsuit. That's why I'm curious about the exact ruling, because I'd like to see how they presented their case.
I'm betting it's on some side technicality, and not actually on the issue of purchasing and reselling pre-paid phones. They probably claimed that their brand was being harmed or something, and ...
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I totally agree, there was a technicality, some exact wording that caught them. This is a free country and thanks to capitolism you can buy and resell at any price. There is no "Not for Individual Resale" Label....(I'm sure after this there will be.) so I say go ahead!
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Obviously you don't read the inserts that come with the phone. It states the verbal agreement in there and also when you activate the service.
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Nothing that comes in the box is legally binding, because you cannot read it until after you have made the purchase.
And get it right... it's not a "verbal" agreement.
And these people aren't activating the service, so no part of any alleged agreement that deals with activation of the service applies.
And get it right... it's not a "verbal" agreement.
And these people aren't activating the service, so no part of any alleged agreement that deals with activation of the service applies.
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Just because you can't read the agreement before you open the box doesn't mean you don't have to follow it. When you buy a PC game there are Terms of Use that you have to follow and you can't read those till you open the box or install the game.
When you purchase the prepaid phone you are entering an agreement with T-mobile to use the phone and the service.
When you purchase the prepaid phone you are entering an agreement with T-mobile to use the phone and the service.
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Computer software is a different story though. Software is protected by the DCMA and international copyright law.
What are the phones protected by?
What are the phones protected by?
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They aren't.
And software specifically states on the outside of the box that there are terms and conditions for use on the inside.
And software specifically states on the outside of the box that there are terms and conditions for use on the inside.
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No, you're not. You are not required in any way to activate the phone, nor are you required in any way to sign up for service with T-Mobile.
If you wanted to go out and buy up every single one of these phones that T-Mobile subsidizes, and then smash them all to little bits, there's absolutely nothing that T-Mobile could do about it.
You are NOT entering into any sort of agreement with T-Mobile when you buy one of these boxed pre-paid phones. The agreement with T-Mobile only starts IF AND ONLY IF you actually do activate the phone with them and sign up for their service.
Again... this is why I think there's something else going on here, because from a straightforward "buying and reselling" point of view T-Mobile doesn't have a case...
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If you wanted to go out and buy up every single one of these phones that T-Mobile subsidizes, and then smash them all to little bits, there's absolutely nothing that T-Mobile could do about it.
You are NOT entering into any sort of agreement with T-Mobile when you buy one of these boxed pre-paid phones. The agreement with T-Mobile only starts IF AND ONLY IF you actually do activate the phone with them and sign up for their service.
Again... this is why I think there's something else going on here, because from a straightforward "buying and reselling" point of view T-Mobile doesn't have a case...
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Your not just "Buying A Phone" your buying the service. Thats why it comes with the SIM card and activation kit. If you were just "Buying A Phone" it would come with just the phone and nothing else.
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No, it's a pre-paid phone, so you're not buying a service. You're buying a box with a phone and a SIM card in it.
T-Mobile hopes that you'll sign up for their service, but there is NO LEGAL REQUIREMENT that you do so. And once you've purchased the phone, you can do whatever you want with it. Including unlock it and resell it to someone else. T-Mobile legally cannot restrict what you do with the phone after you have purchased it.
That's what makes me believe that there's some other side issue involved here that isn't being reported, because as despicable as you may think these actions were they are not illegal.
T-Mobile hopes that you'll sign up for their service, but there is NO LEGAL REQUIREMENT that you do so. And once you've purchased the phone, you can do whatever you want with it. Including unlock it and resell it to someone else. T-Mobile legally cannot restrict what you do with the phone after you have purchased it.
That's what makes me believe that there's some other side issue involved here that isn't being reported, because as despicable as you may think these actions were they are not illegal.
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Roadkill said:
T-Mobile hopes that you'll sign up for their service, but there is NO LEGAL REQUIREMENT that you do so. And once you've purchased the phone, you can do whatever you want with it.
Exactly... you can do with it whatever you want. What if I bought the phone to smash it on the floor (relieve stress). Would TMo come after me because I didn't sign up for their service?
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Figures that Mongrels operating out of Brooklyn NY finally get busted. They have stores all over the place that resell un-locked pre-paids for sky-high prices on a profit. 🤣
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Been a few back and forths on here about this case. I have to side with Roadkill on this one. I dont really understand what T-Mobile based thier case on. Yes, they was losing money (was they really? they are making profit still on the phones people DID activate) but they also made money off these phones already. I mean, they was 1st bought at T-Mobiles price before being re-sold at thier own price (mind you, if I buy a phone and spend time on it to do whatever - from ringtones to unlocking it - im going to charge more then wheat I paid).
It seems to me like this ruling really paid T-Mobile and I think they should apeal this in a higher court. Why? Simple...T-Moible Got Paid!
They got paid by the guys who bought the phones in bulk. The...
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It seems to me like this ruling really paid T-Mobile and I think they should apeal this in a higher court. Why? Simple...T-Moible Got Paid!
They got paid by the guys who bought the phones in bulk. The...
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This forum is closed.
