Lawsuit: T-Mobile Must Pay For Breaking Lifetime Price Guarantee
An anonymous reader quotes a report from Ars Technica: Angry T-Mobile customers have filed a class action lawsuit over the carrier's decision to raise prices on plans that were advertised as having a lifetime price guarantee. "Based upon T-Mobile's representations that the rates offered with respect to certain plans were guaranteed to last for life or as long as the customer wanted to remain with that plan, each Plaintiff and the Class Members agreed to these plans for wireless cellphone service from T-Mobile," said the complaint (PDF) filed in US District Court for the District of New Jersey. "However, in May 2024, T-Mobile unilaterally did away with these legacy phone plans and switched Plaintiffs and the Class to more expensive plans without their consent." The complaint, filed on July 12, has four named plaintiffs who live in New Jersey, Georgia, Nevada, and Pennsylvania. They are seeking to represent a class of all US residents "who entered into a T-Mobile One Plan, Simple Choice plan, Magenta, Magenta Max, Magenta 55+, Magenta Amplified or Magenta Military Plan with T-Mobile which included a promised lifetime price guarantee but had their price increased without their consent and in violation of the promises made by T-Mobile and relied upon by Plaintiffs and the proposed class." The complaint seeks "restitution of all amounts obtained by Defendant as a result of its violation," plus interest. It also seeks statutory and punitive damages, and an injunction to prevent further "wrongful, unlawful, fraudulent, deceptive, and unfair conduct." The report notes that the lawsuit centers around T-Mobile's broken "Un-contract" promise made in January 2017, which assured customers that their T-Mobile One plan prices would never increase unless they decided to change their plans. Despite the guarantee, T-Mobile included a significant caveat in a FAQ on its website, stating they would only cover the final month's bill if the price was raised and the customer decided to cancel. Many customers missed this caveat, leading to confusion and frustration when prices were later hiked. The lawsuit also addresses the transition from the "Un-contract" to a new "Price Lock" guarantee, which initially offered more protection but was later weakened, causing further dissatisfaction. The FCC said it has received around 1,600 complaints regarding these price hikes by late June.
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