Why Do Costco and Target Allow Cell Phone Salespeople? And Are They Legit?

You walk into a Costco browsing for treasures and hoping to find some delicious free samples. Suddenly, a professionally-dressed person approaches you.

You’re not in a Verizon, T-Mobile or AT&T store. But you’re engaged in an unexpected conversation about your cell phone service with a salesperson.

This takes place across America, as the cell phone space is competitive when it comes to market share. But getting caught off guard outside of a cell phone store brings up questions. Let’s visit a few of those.

Can I Trust Salespeople Offering Me Cell Phone Deals Inside Retail Stores?

Are cell phone salespeople inside retail stores scammers or legitimate? And are their crazy promises about price savings true?

That’s what a Clark Howard listener recently asked.

Asked Roger in Georgia: “I was approached by a professionally dressed person wearing an AT&T badge at my local Target store near the electronics department. This salesperson proceeded to ask me who my current carrier was and what iPhone I had.

“I told him I had Verizon and an iPhone 14. After typing on his iPad he said he could get me $1,000 dollars off a new iPhone 15 Pro (with trade-in) and my bill would be a fraction of what I was paying Verizon.

“I said that seems too good to be true and I would have to think about switching. I then asked if their coverage was as good as Verizon. He then told me that AT&T owns T-Mobile and Verizon towers. I called BS and walked away. Is this guy really from AT&T? Why are retail stores like Target and Costco allowing these salespeople in their stores?”

First, let’s address the legitimacy. The person who approached Roger likely was an AT&T contractor. AT&T ostensibly would pay them to generate leads and earn new customers. And AT&T also would pay Costco, Target or some other store for the right to be present inside one of their locations.

Don’t Trust Cell Phone Company Representatives, Clark Says

Next, be wary of anything a representative of a cell phone company such as Verizon, T-Mobile and AT&T tells you. They’re likely to say all kinds of things to get you to become a customer.

“Never, ever, ever not ever trust what [they say]. I don’t know how many lies I hear over and over again from people where they say, ‘They told me I was going to pay blah, blah, blah. And then the first bill came and it was so much money,'” Clark says.

“And what matters under the law? Only what you signed your name to on that iPad. Not what the salesperson told you.

“Never, ever sign up for a service from any of these representatives until you have had a chance to read what you’re signing your name to. Because this is garbage. Telling you that you’re going to pay a fraction of what you’re paying to Verizon by switching to AT&T.”

It’s a great idea to shop your cell phone provider. Too many people get complacent paying big bucks at one of the Big Three companies, Clark says.

Make sure to very carefully read the terms and conditions of any cell phone deal you’re preparing to sign. But to avoid getting fooled, you can always check the prices of the unlimited phone plans online.

Team Clark also monitors and researches prepaid plans. You can land a quality cell phone plan for less than $40 a month.

Clark Dislikes the Major Cell Phone Carriers

Clark liked T-Mobile when the company labeled itself the “Un-carrier” under former CEO John Legere.

These days, he considers T-Mobile to be just as frustrating as Verizon and AT&T, citing worsening customer service. A lack of a fourth major carrier, among other factors, also has led to unlimited plan price hikes.

“Now they’re Tweedly Dee, Tweedly Dumb and Tweedly Dumber. And they’re all pretty much in the same general price categories now and trying to push rates up on everybody,” Clark says. “So unless you have in writing when you sign your name, the promises made, don’t believe them.”

Cell Phone Carriers Typically Lease Towers

If the AT&T representative said that AT&T owns Verizon and T-Mobile’s cell phone towers, it isn’t true.

Regardless of who said what, it can be confusing. Let’s let Clark explain how cell phone towers work these days.

“There are big companies, some of them publicly traded, that own almost all the cell phone towers in the United States. And then they lease space to the various cell phone carriers. And then other parties as well on those towers for various purposes,” Clark says.

“The cell phone industry a good while ago generally got out of the tower business and owning towers. And discovered they were better off with engineering specialists owning the towers and leasing the space.”

Final Thoughts

The bottom line: when it comes to cell phone salespeople, bring out your inner skeptic.

“Please remember the most important thing. Never, ever trust what you are told by a cell phone company employee or representative,” Clark says. “The only thing you can trust is what’s in writing that your name is going to be signed to. Period.”