Back in 2017, T-Mobile introduced their “Un-contract” which included the first-ever price guarantee on an unlimited 4G LTE plan. Now, the second-largest wireless company in the United States faces a class-action lawsuit after breaking that guarantee, according to a report from Ars Technica.
“Now, T-Mobile ONE customers keep their price until they decide to change it. T-Mobile will never change the price you pay for your T-Mobile ONE plan. When you sign up for T-Mobile ONE, only YOU have the power to change the price you pay,” then CEO John Legere announced during a press event at the 2017 Consumer Electronics Show (CES).
However, the company did raise prices on those plans, and on July 12, 2024, a complaint was filed by four plaintiffs who reside in Georgia, Nevada, New Jersey, and Pennsylvania. The four are looking to represent a nationwide class of “all persons residing in the United States 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 states that the T-Mobile subscribers saw a price hike of up to $5 per line. Christopher Oddo, the plaintiff from New Jersey, had three lines with the company and saw a $15 increase on his monthly bill. Harry Hyaduck, Sr., the Georgia plaintiff, switched to T-Mobile after seeing the price-guarantee ad on TV. Yet, his four-line Magenta Military plan increased from $100 to $120, according to the complaint.
The lawsuit spotlights other customers who switched to T-Mobile due to the advertising of the price guarantee. It even goes as far as stating that “T-Mobile engaged in deliberately misleading behavior” and “T-Mobile is well aware that its customers are angry at being duped by its false advertising.”
The filing contains numerous complaints from customers posted on T-Mobile’s Community forum and the plaintiffs are seeking “restitution of all amounts obtained by Defendant as a result of its violation of the statutory claims.”
According to the lawsuit, T-Mobile’s terms and conditions have “a mandatory arbitration provision and class action waiver either when they signed up for their plans or via mail, email or text message at any time since through the present.” However, the filing claims that the plaintiff’s counsel had to Google search that provision and found it in the “Terms and Conditions” dated May 15, 2023. The reason for the search is that none of the four plaintiffs received a copy of T-Mobile’s terms and conditions. Once found, the lawsuit says the four also opted out of the mandatory arbitration provision and class action waiver.
When one of the plaintiffs contacted T-Mobile about the price increase, the company cited that the terms and conditions of the Un-carrier price guarantee, only guaranteed that T-Mobile’s “sole obligation is to pay his final bill if he cancels within 60 days due to a price increase,” the lawsuit said. The lawsuit states that it was not something the plaintiff was made aware of in the advertising or one of the terms when he signed up.
T-Mobile has yet to comment on the lawsuit.
Credit: Ars Technica