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Big Apple is suing T-Mobile and claims that the third largest US mobile phone company is deceiving consumers with tactics such as selling used phones as new and using fraudulent return policies.

The state court case in Manhattan Supreme Court on Wednesday follows a year-long investigation that claims the company and more than 50 of its subways at T-Mobile stores around New York violate the city's consumer protection law thousands of times , according to a news release.

"Companies that are allegedly cheating New Yorkers should be held accountable," Mayor Bill de Blasio said in a statement. "We are doing our best to ensure that T-Mobile puts an end to these fraudulent practices and customers who have benefited from the restitution they owe."

Metro by T-Mobile is a prepaid wireless phone brand Operator was formerly known as MetroPCS.

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In an email, T-Mobile stated that it took the allegations "very seriously" but could not comment on the specific allegations. The company said the allegations were "completely at odds with the integrity" of its team and the commitment it has to take care of its customers.

The city stated in its message that it wanted T-Mobile to "stop all illegal" activity in order to lose the profits from fraudulent practices so that the court would set up a victim restitution fund, "pay penalties and notify credit bureaus that the financing contracts were fraudulent.


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What the lawsuit alleges

According to the city lawsuit, T-Mobile fraud involves:

• Fraud customers to buy used phones. The city says it "received a stream of complaints from users who were paying hundreds of dollars for new phones but were unknowingly selling used phones."

• Fraud customers about financing. The city claims that the terms of the contracts "usually add hundreds of dollars to the advertised price."

• Charging of illegal taxes, secret fees and fees for unwanted services.

• Fraudulent Return Policy. The city said T-Mobile's return policy was misrepresented on the Metro brand website, claiming that the phones had a "30-day warranty", while the fine print states that phones purchased at the store must be returned within seven days.

• Failed to submit legal receipts.

Contributed by: Associated Press

Follow Kelly Tico on Twitter: @KellyTyko

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