T-Mobile announced its Price Guarantee plans back in 2017. As the name suggests, these promised to keep subscription prices for certain 4G plans unchanged. Well, carriers don’t always stick to their promises. Similarly, in 2024 the company went back on its word and started raising prices for those plans. But that move is coming back to haunt it. Following an investigation by New York’s attorney general, T-Mobile must offer affected New York customers reimbursements and other benefits.
T-Mobile must offer reimbursements to customers after breaking its price guarantee
According to the attorney general, Letitia James, around 252,957 New Yorkers signed up for T-Mobile’s Price Guarantee plans. However, their bills increased several years after they subscribed. T-Mobile used fine-print terms to justify raising prices on certain plans, but this violates New York law. As a result, the company must now offer affected customers reimbursement and other benefits.
New Yorkers deserve clear and honest prices, not misleading offers with hidden fine print. T-Mobile misled hundreds of thousands of New Yorkers by promising that it would never raise prices on their cellphone plans, only to do exactly that just a few years later. Consumers shouldn’t have to pay the price for a misleading sale. My office is getting New Yorkers their money back,” said New York Attorney General Letitia James.
Not the first time
New Yorkers whom T-Mobile identifies as using 4G phones can cancel their service and receive a refund for their final month and a $25 gift card. Alternatively, they can also choose a free 5G phone worth up to $250 or get a $150 discount on a 5G phone that’s above $250. Meanwhile, those who stay with T-Mobile won’t see their plan prices increase until at least 2029.
The reimbursements, along with a $98,000 fine to New York, will cost T-Mobile over $38 million. While that’s that, this isn’t the first time T-Mobile faced criticism. Earlier this year, all three major US carriers came under scrutiny for selling customers’ location data.
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