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Unconscionable for you maybe. Others may see it differently.
First of all, you did not state the plan you are on with Verizon. The mobile hotspot on the S3 IS NOT free on all plans. It is free on the Share Everything plan with the data charged against your monthly allowance. All other plans require an additional fee to use the hotspot.
Second, using the hotspot on the S3 CONSIDERABLY diminishes the battery life of the phone. It is quite possible that the rep you encountered has had countless complaints from people telling him about the unconscionable act of reccomending that the hotspot be used to provide data to other devices and they find their phone only lasts about half the time when doing so. Different people see the benefit of a process in different ways. It is not a black and white issue. Additionally, unless you have an extended battery on your S3, your battery life when using the hotspot will be almost non-existent. Adding an extended battery doubles the size of the phone and not everyone likes that.
We ALSO do not know how your encounter went. You most likely do not remember the exact wording, either. You say "asked if there were ways to put my IPAD on Verizon" could very easily have been understood to mean "what way do you recommend putting my IPAD on Verizon". Quite possibly THAT is the way the rep prefers and would obviously recommend.
As to you not receiving a benefit from this contract, IF you signed a contract you received a discount on the price of the device. Verizon sells the device in question for $170. You could have purchased it at that price and NOT had a contract and been able to cancel your service AT ANY TIME WITHOUT PENALTY. IF you signed a contract, Verizon does not charge you for the device, so THAT IS A BENEFIT. It is unconscionable to now attempt to say otherwise in order to bolster your argument, although I will "choose to excuse you from criminal liability".
When did you purchase this mobile hotspot? If it was before Christmas(but after Thanksgiving), I believe you have until January 15 to return it and get out of your contract. There will be a $35 restocking fee, but it is considerably lower than your ETF. If you have purchased it since Christmas, you have a 14 day period to return it and get out of your contract without an ETF. The $35 restocking fee would still apply. Good luck.