Consumer Groups Sue T-Mobile for Misleading Price Protection Promise: A Closer Look at the Allegations

After a spate of controversial price increases, T-Mobile is now facing a class action lawsuit. Plaintiffs allege that they were deceived by T-Mobile’s highly publicized lifetime price guarantee, which contained major loopholes that were not made obvious to potential customers or active subscribers.

The plaintiffs, who filed their complaint to the U.S. District Court on July 12th, claim that the price of their T-Mobile subscriptions increased “without their consent and in violation of the promises made by T-Mobile.” They hope to represent all U.S. residents who were impacted by a price increase after receiving a price guarantee from T-Mobile, and they seek to obtain “restitution of all amounts obtained by Defendant as a result of its violation” in addition to damages and an injunction against T-Mobile’s “unfair conduct.”

T-Mobile’s original lifetime price guarantee was established in 2017 as a pillar of the “Un-Carrier” marketing campaign. T-Mobile boasted that “customers keep their price until THEY decide to change it.” This policy was rarely (if ever) the focus of TV advertisements, though it was frequently used as a sales pitch by T-Mobile personnel and became a popular talking point in media coverage . T-Mobile’s former CEO, John Legere, also cited the price guarantee when publicly antagonizing rival carriers like AT&T and Verizon.

That said, the promise that “T-Mobile will never change the price you pay” contained some underlying clauses. An FAQ on T-Mobile’s website clarified that T-Mobile could raise prices at any time. The so-called “price guarantee” simply promised a full refund on your final month of service if you chose to cancel after a price hike.

Here’s the confusing part of this story; an adjusted Price Lock system, which was introduced in 2022, genuinely protected T-Mobile customers from price hikes. Customers who joined T-Mobile between April 2022 and January 2024 have not experienced any changes in pricing. New subscribers still receive a “Price Lock,” but it’s really just a rehash of the 2017 price guarantee —you can get a refund if you cancel after a price hike, and all that.

We’re in an odd situation where some T-Mobile customers experience price increases while others do not. Seven years of wishy-washy policy, strange corporate loopholes, and questionable underhanded actions now provide fodder for the class action lawsuit that T-Mobile is forced to fight against.

T-Mobile may argue that the terms of its price guarantees, including the aforementioned caveats, have always been available online. Plaintiffs acknowledge this fact, but they say that T-Mobile’s terms were not included in paperwork or other documents at signup. This lawsuit could easily veer into a discussion of dark patterns —deceptive corporate practices that increasingly draw the ire of the FTC.

Class action lawsuits can take months or years to reach a conclusion. This one’s just gearing up. We’ll provide updates once T-Mobile comments on the situation.

Source: U.S. District Court via Wired

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