Free Apple Watch scam

Deposit?    What deposit?  You would have paid sales tax on the watch, that's not a deposit.  

Or do you mean you're receiving bill credits against the watch making the watch discounted or free?   

If you are receiving bill credits, canceling the watch line would void any future bill credits.   

If you get a phone free with bill credits, you still have to pay for service right? Why would you think you didn't have to pay service on a watch?   (Or a tablet)

These devices are a loss leader. AT&t's product is service. The only reason they sell devices is so that they can sell service.

Well when asked we were told there was going to be no payments on it that it came with the account because we were receiving first net services. We did not pay sales tax we paid a 100$ deposit that was supposed to be credited back to the account paying off the first bill of the whole account. We asked a lot of questions too but were not told the last part we even mentioned it was going to be used as a gift and no one said a thing.

I'm still confused about your comment about deposit. You may have paid a down payment on devices. But AT&T hasn't done service deposits in years.  

Back when AT&T did do deposits on service, that deposit was refundable after one year.  Had nothing to do with devices.  If you canceled or defaulted on the account, the deposit was used toward your final balance.  

Unless you live in a state that does not have sales tax, you had to pay sales tax. There's no way around it, it's a state law. It's either collected when you get your devices, or it's on the first bill. (There are six states that allow sales tax to be collected on the first bill rather than at time of sale).    

Where did this transaction take place?  Inside of a retailer like Walmart or Costco?  At an ATT store?

@skeeterintexas at the att store

@formerlyknownas I approved a 100$ transaction with my card and what you described for the deposit is exactly what was told to me. The person who helped me out gave me their phone number telling me how they would help me out with any questions. They of course started to ignore my messages about the whole bill but that’s honestly on me for having been too trusting. This was all at the att store. 

Many (most) ATT branded stores are, in fact, Authorized Resellers which means they are owned and operated independently from ATT.  Unfortunately they have a reputation of being less than honest & trustworthy.