Consumer Alert: The Hidden Costs of Phony 'Free' & 'Unlimited' Offers

New national research from Consumer Cellular reveals how millions of Americans are likely overpaying for wireless usage and "free" phones that are anything but.

SCOTTSDALE, Ariz., Nov. 3, 2025 /PRNewswire/ -- A new nationwide study of over 2,000 U.S. adults commissioned by Consumer Cellular, and conducted by The Harris Poll, exposes how misleading "free" phone offers and unnecessary unlimited data plans could be quietly draining consumers' wallets.

According to the research, nearly 8 in 10 mobile consumers age 50 and older (79%) either have an unlimited data plan or consistently use less data than their plan allows, meaning millions of older Americans may be unknowingly paying for data they don't use, and effectively subsidizing heavier streamers from younger generations on those same plans.

In fact, Consumer Cellular's own network data show that the company's average customer age 50 and older uses just over 5GB of data per month, a fraction of the data usage thresholds required to justify the significantly higher cost of "unlimited" plans from major carriers.

In addition to highlighting consumer opportunities related to "unlimited" plans, the study found that 27% of U.S. adults, an estimated 73 million Americans¹,  say they have accepted a "free" or "on us" phone offer without understanding the fine print or commitment it required. The likely result: customers locked into multi-year contracts or inflated monthly plans that erase any savings promised up front.

"'Free' isn't free, and 'unlimited' rarely means what people think it does," said Ed Evans, CEO of Consumer Cellular. "Our research and our own customer data both show that tens of millions of Americans are almost certainly overpaying for data they don't use or phones that aren't really free. Carriers need to make it easier for people to understand what they're truly paying for and how to right-size their plan."

Key Findings:

• 27% of U.S. adults accepted a "free" or "on us" phone offer without understanding its terms or commitment.
• 90% of mobile consumers believe most people do not understand the true cost or contract terms behind these "free" phone promotions.
• 79% of mobile consumers 50+ have unlimited plans or use less data than their plan allows, indicating probable overpayment for unused data.
• 82% of Big Wireless mobile consumers 50+ have unlimited plans or use less data than their plan allows, 52% don't know how much data they use per month, and 52% don't ever shop around for a better plan.53% of mobile consumers 50+ don't know how much data they use; close to a third (28%) admit they don't know how to check their usage.
• 43% of mobile consumers never shop for a better mobile plan; 53% of those ages 50+ say they never do.

The Price of Wireless Carrier Loyalty

The study found that consumers' reluctance to review their data usage or shop around compounds the problem. Once tied to a "free" phone promotion or an expensive unlimited plan customers often stay put for years, effectively funding new-device giveaways and heavy data usage for others through their own overpayments. The fact that 53% of mobile consumers 50+ never shop around for a new phone plan highlights a huge, missed opportunity for millions of Americans to save billions by right sizing their phone plans. Commenting on this unique finding, Evans said, "The truth is, most people don't need unlimited everything, they just need the right plan for the way they actually live," added Ed Evans. "Even for those who like the 'set it and forget it' aspect of unlimited, there are smarter options from carriers that don't have to pass on the high costs of younger data users to their consumers."

Consumer Guidance

Consumer Cellular urges customers to:

1. Audit your data usage. Check your phone settings or carrier dashboard to see how much data you really use each month; you may be able to switch to a lower data plan and save each month.
2. Calculate your true costs. When evaluating a "free" phone offer, factor in the required plan and contract length.
3. Shop around once a year. Even a quick review can reveal simpler, lower-cost options that better match your usage.

Research Method

This survey was conducted online within the United States by The Harris Poll on behalf of Consumer Cellular from October 2-6, 2025, among 2,052 adults ages 18 and older.  The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For additional details, please visit: https://savings.consumercellular.com/truthinwireless

For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Sapna Gangwal: [email protected].

About Consumer Cellular

Founded in 1995, Consumer Cellular provides affordable, no-contract wireless service designed to meet the needs of cost-conscious consumers. The company consistently earns top marks for customer satisfaction and value from leading consumer and industry groups. Consumer Cellular's flexible plans and award-winning support are available online, by phone, and at major retailers nationwide.

Learn more at ConsumerCellular.com.

Press Contact:
[email protected]

¹ Estimate derived from the Population Reference Bureau (PRB) analysis of data from the U.S. Census Bureau, Population Division, which estimates 266,978,268 U.S. adults (age 18 and older) in 2024.

SOURCE Consumer Cellular