TECHNOLOGY

T-Mobile explains why customers aren’t allowed to sue it for raising price

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T-Mobile explains why customers aren’t allowed to sue it for raising price

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T-Mobile explains why customers aren’t allowed to sue it for raising price



In May, T-Mobile hiked prices on legacy plans which it previously said would stay the same price for life. Customers were taken aback, with many writing to the Federal Communications Commission (FCC) to complain that they felt betrayed. The FCC has received thousands of complaints regarding the matter, according to a new report.

T-Mobile customer

T-Mobile customer

In 2015, T-Mobile announced an “Un-contract” initiative under which it promised to never raise prices for certain plans as long as customers didn’t switch to another one. This message was proclaimed loudly, with little effort made to highlight a caveat that said the company would pay the final month’s bill if prices ever went up, essentially walking back its claim.The Un-contract commitment was replaced by a “Price Lock” guarantee in 2022 which only gave customers the right to cancel service if prices were hiked. In many cases, even the latter promise was not fulfilled by the carrier following the May price increase.

T-Mobile customer

The FCC told Ars Technica on September 28 that it had received more than 2,000 complaints about the price hike but didn’t reveal whether it was conducting a formal investigation into the matter.

Ars sent a Freedom of Information Act request to the Commission in late June to have a look at the letters and received 900 of the complaints. The publication also obtained 60 complaints sent to the Federal Trade Commission.

While it remains to be seen if the government will take any action against the company, some customers took matters into their own hands by filing a lawsuit in July. This is perhaps the most important part of the report. It links to a filing from T-Mobile that says the court cannot decide the matter.One of the company’s arguments is that when users consented to using its service after May 15 2023, they relinquished the rights to a jury trial and to participate in class action lawsuits. The only option left to settle disputes is through arbitration.

T-Mobile, October 2024

For now, it appears that there’s no way out of this for customers who feel betrayed other than switching to another provider, which is infeasible for those on device installment plans.

One user, John Bradshaw, has had success calling T-Mobile every month to reimburse them for the additional charges, bringing the bill down from $232 to $215.

John Bradshaw, T-Mobile customer

In their complaints to the FCC, some users have said that T-Mobile‘s behaviour was fostered by its purchase of Sprint in 2020. Some lawmakers had previously hinted that they wanted the merger to be undone.

The FCC has chided and even fined T-Mobile in the past for misconduct but it’s not clear whether the carrier will be reprimanded for raising prices on price-locked plans.



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