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Is Getting a $7 Discount Worth Giving Up Your Privacy?

Sears and Kmart run a rewards program called Shop Your Way Rewards, giving you points for purchases. They are now expanding it to other retailers. In a joint marketing promotion with Visa, they are promising to give you $7 in rewards credit, if you register your Visa card. MrConsumer was tempted by the free $7.

Shop Your Way

On the registration page, they ask for your cellphone number. That should always be a warning flag that you may be getting calls or texts on your mobile phone. The little question mark near the mobile phone field, however, doesn’t say that.

*MOUSE PRINT:

Shop Your Way

Whewwww. That’s a relief.

Well, not so fast. Toward the bottom of the enrollment form, there is a bunch of fine print.

*MOUSE PRINT:

I agree that the SYW Link Program may send me SMS messages to my registered mobile phone number confirming each time the program identifies a potentially qualifying SYW Link purchase, as well as additional SMS messages (approximately 8 per month, which may vary) with SYW offers or updates. Msg&Data Rates May Apply.

Your Visa card’s historic (up to past 13 months) and future transaction history (including air travel itinerary information and location of the merchant where you used your card) may be used to deliver you with offers and messages from the SYW Link Program based on your purchase behavior. [color emphasis added]

In plain English, you are authorizing Sears and Visa to send you eight text message ads a month, in addition to texts each time you make a qualifying purchase. Further, you are allowing the companies to review over a year’s worth of your purchases so they can better profile you.

MrConsumer decided that a lousy $7 payment was not a fair trade for getting a bunch of unwanted text message ads about who knows what, and allowing them to see his purchasing habits. While one can later opt-out of the text messages, the invasion of privacy was too high a price to pay.

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T-Mobile’s “Unlimited?” 4G Service

Few services advertised as “unlimited” are truly unlimited. And T-Mobile continues to be a case in point.

When T-Mobile began advertising “unlimited” data on its cellphones in April 2011, the fine print indicated that only the first two gigabytes were truly unlimited. Any use beyond that would be slowed down or “throttled.” And of course, that fact was not as prominently disclosed as their unlimited claims.

Fast forward to September 2012. T-Mobile published full page ads with a new unlimited claim:

T-Mobile unlimited

However, at the bottom page in almost unreadable type was this:

*MOUSE PRINT:

T-Mobile unlimited fine print

Not obvious on its face, the new unlimited plan is not considered “Ultra” or “Premium” where customers’ data transmission speeds will be given priority when traffic is heavy. That could put those on the new unlimited plan in coach and thus they may not experience the same fast speeds.

Beyond that, on T-Mobile’s “test drive” website, the company seems to proclaim a list of benefits to those who select the new 4G unlimited service (note: graphic has been compressed to fit this page):

T-Mobile

The top-listed benefit is the ability to create a wi-fi hotspot so that data can be shared with other devices nearby such as a tablet. However, when clicking on that benefit, one discovers that this is NOT a benefit of the new unlimited 4G plan.

*MOUSE PRINT:

TM

NOTE: MrConsumer is a member of Verizon’s Consumer Advisory Board, and often criticizes that company for its advertising missteps.

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Oh Gee, Cell Carriers Fudge 4G Claims

If you just landed here from Mars and needed data service to phone home, you would be confused because most cell companies each make you think they have the biggest 4G data networks. Actually, earthlings might be experiencing the same confusion.

AT&T claims:

AT&T

Verizon claims:

Verizon

T-Mobile claims:

T-Mobile

How in the world can AT&T claim that its 4G network has 2000 more cities than Verizon at the same time that Verizon claims to have more 4G LTE coverage than all other networks combined?

The answer is simple (and deceptive): they all define 4G differently.

*MOUSE PRINT:

On AT&T’s website, they disclose that the company calls two different technologies “4G”:

4G AT&T

AT&T defines 4G as including its HSPA+ and LTE networks, while Verizon only counts its LTE network. Which one is fudging the numbers? According to the Wall Street Journal, it’s AT&T:

*MOUSE PRINT:

AT&T Pins 4G Label to Existing Network

AT&T Inc. flipped a switch and turned on its 4G wireless network Wednesday. The switch, however, was in the company’s marketing department.

By relabeling its existing 3G network, the country’s second-largest wireless carrier joined the noisy fray over so-called fourth-generation wireless technology, which promises mobile Internet speeds so fast that huge files can be downloaded in minutes and streaming video can be watched without the interruptions of earlier-generation technologies.

As recently as September, AT&T executives had referred to the company’s current network, which runs on a technology it calls HSPA-plus, as 3G. — WSJ, January 5, 2011

So, AT&T is making people think their 4G network is larger by simply rebranding its 3G network as 4G, and adding the 53 markets it offers 4G LTE to it. (LTE is commonly viewed as the truly faster 4G network, and the future of 4G.) Verizon, on the other hand, only counts its 4G LTE cities as part of its 4G network.

Our advice: forget the marketing labels. Find out what actual speeds the various networks in your area provide, and make your cell service choices based on real numbers. (Use SpeedTest.net at cell stores to check actual speeds.)

Note: MrConsumer is a member of Verizon’s Consumer Advisory Board (and often criticizes them for advertising missteps).