T-Mobile Faces Lawsuit Over Lifetime Price Guarantee Breach

T-Mobile logo on a building

T-Mobile customers have launched a class-action lawsuit against the telecom giant, accusing it of failing to uphold a lifetime price guarantee on certain cellular plans. This lawsuit, first reported by Wired, centers around T-Mobile’s 2017 promise that prices for its T-Mobile ONE and other legacy plans would remain unchanged for life.


The Broken Promise

Back in 2017, T-Mobile made bold claims about its T-Mobile ONE plan, ensuring customers that their prices would remain constant until they chose to change their plans. The T-Mobile ONE plan was advertised at $40 per line for a family of four with AutoPay enabled. This pricing promise also extended to other plans such as Simple Choice, Magenta, Magenta Max, Magenta 55+, and Magenta Amplified.

T-Mobile logo on a building

However, beginning in May 2024, T-Mobile raised prices by $2 to $5 per line for these legacy plans. Despite the price promise, fine print allowed the company some leeway, stating that if prices did increase, customers could cancel their plans and have their final bill paid, a policy that applied to accounts activated between January 2017 and April 2022.


The lawsuit argues that T-Mobile’s FAQ wording is inconsistent with the promises made when customers initially signed up. Plaintiffs claim that T-Mobile breached its agreement, causing financial harm to customers who relied on the lifetime price guarantee.

T-Mobile faces accusations of making false or misleading statements, deceiving customers, and deliberately hiding plans to raise rates. The plaintiffs are seeking class-action status, an injunction to prevent further price increases, restitution for all profits gained from the alleged misconduct, refunds for the extra charges incurred since the price hikes, and additional damages for the injuries suffered.

What’s Next for T-Mobile?

As the lawsuit progresses, T-Mobile will need to address these serious allegations. Customers and industry watchers alike are eager to see how this legal battle unfolds and what impact it may have on the company’s pricing policies and customer trust in the future.


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