T-Mobile Sued for Alleged Breach of Lifetime Price Guarantee Amidst Controversial Price Hikes
T-Mobile is once again in the hot seat, this time facing a class action lawsuit alleging it violated its promised lifetime price guarantee. According to a complaint filed on July 12 in the US District Court for the District of New Jersey, the telecommunications giant is accused of unilaterally terminating longstanding phone plans and imposing higher rates on customers without their consent.
The lawsuit represents a group of plaintiffs from New Jersey, Georgia, Nevada, and Pennsylvania who entered into plans with T-Mobile that supposedly included a guarantee of stable pricing for life. However, in May 2024, T-Mobile reportedly switched these customers to more expensive plans, contrary to their original agreement.
The plaintiffs argue that T-Mobile's actions breached the terms of their contracts and violated consumer protection laws. The complaint seeks restitution of the amounts paid due to these alleged violations, along with statutory and punitive damages. The plaintiffs also request an injunction to prevent further "wrongful, unlawful, fraudulent, deceptive, and unfair conduct" by the company.
The controversy stems from T-Mobile's earlier promotional promises, including the "Un-Contract" guarantee, which assured customers their plan prices would remain unchanged unless they opted to alter their plan. Despite this, T-Mobile's policies and advertisements were criticized for containing misleading information. The "Un-Contract" promise, marketed from January 2017 to April 2022, was later replaced by the "Price Lock" guarantee, which also faced criticism for being weaker than advertised.
The recent price hikes, which saw increases of up to $5 per line, have further fueled customer dissatisfaction. Many customers have reported issues with obtaining refunds for their final month's bill, despite T-Mobile's commitment to cover such costs if it raised prices.
The Federal Communications Commission (FCC) has received numerous complaints about these price increases, and the ongoing legal battle highlights the growing frustration among T-Mobile's customer base. The outcome of this lawsuit could have significant implications for T-Mobile's future practices and customer relations.
