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The Big Apple is suing T-Mobile and alleges the third-largest U.S. mobile phone company scammed consumers with tactics like selling used phones as new and using deceptive return policies.
The lawsuit filed in state Supreme Court in Manhattan Wednesday follows a yearlong investigation alleging the company and more than 50 of its Metro by T-Mobile stores around New York City violated the city's consumer protection law thousands of times, according to a news release.
“Companies that blatantly scam New Yorkers must be held accountable,” Mayor Bill de Blasio said in statement. “We are doing everything in our power to make sure that T-Mobile ends these deceptive practices and that customers who were taken advantage of get the restitution they are owed.”
Metro by T-Mobile is the wireless carrier's prepaid phone brand and previously was known as MetroPCS.
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In an email, T-Mobile said it was taking the allegations "very seriously" but couldn't comment on the specific claims. The company said the accusations are "completely at odds with the integrity" of its team and the commitment they have to taking care of its customers.
The city said in its news release that it wants T-Mobile to "stop all illegal activity, to forfeit the revenue gained from the deceptive practices so that the court can create a restitution fund for victims," pay penalties and to notify credit bureaus that the financing contracts were fraudulent.
According to the city's lawsuit, T-Mobile’s deception practices include:
• Tricking customers into buying used phones. The city says it “received a stream of complaints from consumers who paid hundreds of dollars for new phones but were unknowingly sold used phones.”
• Deceiving customers about financing. The city alleges the terms of contracts “typically add hundreds of dollars to the advertised price.”
• Charging consumers illegal taxes, mystery fees, and fees for unwanted services.
• Deceptive return policy. The city said T-Mobile’s return policy is misrepresented on the Metro-branded website and claims phones have a “30 day guarantee,” while the fine print says phones bought in-store must be returned within seven days.
• Failing to provide legal receipts.
Contributing: Associated Press
Follow Kelly Tyko on Twitter: @KellyTyko
Just briefly
Brand-friendly: “The U.S. Open is evolving, and becoming more brand-friendly, by design,” Ad Age’s Brian Braiker writes. It’s got 21 official sponsors, including Emirates Airlines, J.P. Morgan Chase/Chase Bank and American Express. That’s up from 19 last year. And there are plenty of brands in the concession stands too; Grey Goose is selling something called a Frozen Honey Deuce for $20.
New job: General Motors has named Cadillac marketing chief Deborah Wahl as its global chief marketing officer, “a position that hasn't been filled since 2012,” Automotive News reports. Wahl previously spent three years as CMO of McDonald's USA.
Quote of the day: The Interactive Advertising Bureau’s Tech Lab doesn’t expect Apple to support its efforts to create new standards for tracking internet users. “They historically have shown that they don’t play well with others,” the IAB Tech Lab’s Jordan Mitchell says. Read more by Ad Age’s George P. Slefo.
Ad of the day: If you’re a fan of “Rudy,” the feel-good football movie from 1993, you’ll be happy to know that it’s getting a mini-sequel, courtesy of KFC and Wieden & Kennedy. As Ad Age’s Jessica Wohl reports, actor Sean Astin reprises the role of the title character in a KFC commercial, but he’s simultaneously playing Colonel Sanders. If you think it sounds wacko, you’re correct. Just watch it.
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Dozens of state attorneys general are set to formally launch separate antitrust probes starting next week into Facebook and Alphabet's Google unit, according to The Wall Street Journal, citing people familiar with the matter.
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The Google probe is expected to be announced Monday at a news conference outside the U.S. Supreme Court, according to the Journal.
The investigation, led by Texas Attorney General Ken Paxton, along with a bipartisan group of about three dozen state attorneys general, will examine Google's impact on digital advertising markets, focusing on potentially harmful information provided to consumers and ad choices.
Meanwhile, New York Attorney General Letitia James, with an overlapping bipartisan group of attorneys general, is organizing a probe into Facebook, furthering the conversation of "unchecked power of large tech companies," the Journal reported.
“The attorneys general involved have concerns over the control of personal data by large tech companies and will hold them accountable for anticompetitive practices that endanger privacy and consumer data," James told the Journal.
This comes at a time when tech giants are already under federal scrutiny.
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“This news along with the broader Senate hearing looking into whether these Tech giants bought up smaller competitors to remain dominant in their respective markets represents an overhang to each stock," according to a team of Wedbush analysts led by Dan Ives. However, the analysts further mention that investors should "focus on the fundamentals in the near-term as any resolution of these probes would likely take many years to complete."
A spokesperson for Google told FOX Business: "Google's services help people every day, create more choice for consumers, and support thousands of jobs and small businesses across the country. We continue to work constructively with regulators, including attorneys general, in answering questions about our business and the dynamic technology sector."
Facebook did not respond to FOX Business' request for comment at the time of publication.
WASHINGTON—State attorneys general are formally launching separate antitrust probes into Facebook Inc. and Alphabet Inc.’s Google unit starting next week, according to people familiar with the matter, putting added pressure on tech giants already under federal scrutiny.
The Google probe is expected to be announced at a news conference outside the U.S. Supreme Court on Monday, with a bipartisan group of about three dozen state attorneys general joining the effort, the people said.
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New Wave Foods' plant-based shrimp
Source: New Wave Foods
After selling its stake in Beyond Meat in the spring, Tyson Foods' next bet is on plant-based shellfish.
Tyson Ventures, the venture capital arm of the meat processing company, is investing in New Wave Foods. Tyson Ventures CFO Tom Mastrobuoni declined to discuss the financial terms of deal but said that Tyson took a minority stake of less than 20% in New Wave.
The start-up, which was founded in 2015, makes plant-based shrimp from seaweed, soy protein and natural flavors.
"I tasted it for the first time in a cafe in Palo Alto, and I had no idea I was eating plant-based shrimp," Mastrobuoni said.
After shrimp, New Wave is planning to tackle crab and lobster. Shrimp is the most consumed seafood in the world, according to co-founder and Chief Technology Officer Michelle Wolf.
"From a business perspective, it made sense because of the market opportunity," Wolf said.
While there are a number of companies tackling plant-based fish like salmon or tuna alternatives, New Wave is one of the few trying to sell crustacean substitutes. Mastrobuoni said that the lack of competition made New Wave a more attractive investment.
Tyson will leverage its scale and network to help accelerate New Wave's growth.
"We've said this all along — alternative protein is an 'and' concept for Tyson, it's not an 'or,' " Mastrobuoni said.
For now, New Wave Foods' distribution is limited to three food-service locations rather than restaurants. CEO Mary McGovern said the company plans to target food service first, in part because 80% of shrimp consumption in the U.S. happens outside the home.
New Wave is Tyson Ventures' ninth investment since starting the fund in 2016. Mastrobuoni declined to disclose any track record of the fund's performance.
Before Beyond Meat went public in May, Tyson sold its stake in the company as it prepared to launch its own plant-based meat products, including imitation chicken nuggets. Since Beyond Meat's initial public offering, the stock has soared 554%.
Tyson is far from the only Big Food company with its own venture arm. Kellogg, General Mills, Kraft Heinz and Campbell Soup have their own investment funds.
Tyson isn't the only traditional food company branching out into plant-based foods. Hormel and Kellogg announced plans Wednesday to produce plant-based meat brands.
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