Updated every Monday!   Subscribe to free weekly newsletter.

Sprint Student Free (?) for All

Best Buy recently sent out an email making an astonishing offer on cell service for students:

Sprint student offer

They are providing a year of free service. That means free unlimited calls, texts, and 1 gig of data ($10 extra for unlimited data). What a deal!

It says however, “with purchase of phone at Student Activated price.” What’s that?

*MOUSE PRINT:

Sprint student prices

The prices being charged by Best Buy for the phones appear to be full price, the same as what Sprint itself would charge. In some cases, the price appears to be $50 higher than buying from Sprint directly. The benefit for the student, however, is a free year of service, without having to sign a two-year contract.

So is this a good deal? The less expensive of the two Sprint plans that the student is required to sign up for is $70 a month (plus fees and taxes) if he/she had to pay for it. So that is $840 saved for the year, but the student is paying full price or slightly more for the phone. On the other hand, if the student were to get a fancy phone free from Sprint during a promotion, he or she would have to pay that $840 for service. So it appears that the student could save a little by taking advantage of the student offer, but not hundreds and hundreds of dollars.

Presumably in year two, the phone might be able to be added onto a family plan at discounted monthly rates, and then the savings would increase (or maybe just get onto a family plan to start with to save).

Updated every Monday!   Subscribe to free weekly newsletter.

Target Finds Sneaky Way to Make Robocalls

Target’s red debit card provides a host of benefits that few department stores offer: free shipping with no minimum from their .com store, an additional 5% discount off most purchases, and a 30-day extension to their regular return policy.

When MrConsumer recently applied for a Target debit card, he was taken aback by the company’s tricky maneuver to allow it to make robocalls to its cardholders’ cellphones.

When one applies for the card in-store, you fill out the simplified application that appears on the little signature screen of the credit card terminal at the customer service desk. In addition to entering your social security number on one screen, and your date of birth on another, two screens also come up requesting your home phone and cellphone numbers.

*MOUSE PRINT:

Target

On the left of the two phone number screens is a disclosure granting Target permission to make robocalls to your cellphone. MrConsumer only provided a home phone (a landline) and left the cellphone screen blank. The application did go through.

Why did Target tuck that disclosure into the on-screen process, while leaving all other disclosures to a fine print booklet? The reason is that the FCC requires companies to get the consumer’s explicit written permission before any robocalls or texts can be made to a wireless telephone.

Most consumers probably won’t catch the disclosure, and won’t they be surprised when Target targets texts to them.

Updated every Monday!   Subscribe to free weekly newsletter.

Walmart Touts Free Layaways But Quietly Adds Cancellation Fee

Retailers are making a big push to promote early holiday shopping. Kmart began TV advertising last week, and Toys-R-US just announced modified store policies. And Walmart started promoting its holiday layaway plan:

Walmart layaways

“This time it’s free,” the ad boasts. This refers to the fact that last year Walmart charged a $5 fee to initiate a layaway, but they reimbursed that fee to shoppers at the end by giving them a $5 gift card.

What Walmart doesn’t tout is another inconspicuous change.

*MOUSE PRINT:

Walmart cancellation fee

Yep. They have introduced a $10 cancellation fee which is imposed if the consumer cancels the purchase. It is also triggered if all the payments are not made or if the item is not picked up by December 13.

No one is disputing Walmart’s right to add a cancellation fee, particularly if they have taken the shopper’s goods off the selling floor for three months. What is interesting, however, is that their marketing folks have taken a net negative change to the layaway plan (the $10 cancellation fee) and essentially no change to their start fee (since it was rebated), and turned it into a positive advertising campaign.