In May, T-Mobile, the nation’s third-largest carrier, announced plans to increase rates on some of its older plans. The rate hikes range from $2 to $5 per line or up to $20 per account per month. This move has left many customers dissatisfied, leading to a class action lawsuit against the company, as reported by Phone Arena.
The price increases impact users of legacy Simple Choice, ONE, and Magenta plans. Some customers argue that these hikes violate T-Mobile’s Price Lock and Un-Contract commitments. Following numerous complaints to the U.S. FCC and FTC, customers from four states – Georgia, New Jersey, Nevada, and Pennsylvania – have joined the class action lawsuit against T-Mobile.
According to Android Authority, T-Mobile is accused of infringing on the Consumer Protection Law, New Jersey’s Consumer Fraud Act, and the Pennsylvania Unfair Trade Practices Law.
So far, the National Advertising Division (NAD) is the only government agency to raise concerns about T-Mobile’s price hike. It has requested the company to cease advertising its “Price Lock” policy.
When T-Mobile initially announced the price hikes, it emphasized its commitment to providing the best value in wireless services. The company stated that due to rising costs, adjustments to the prices of older rate plans were necessary, affecting only a minority of customers.
It remains to be seen whether T-Mobile customers or the company will have the final say in this matter. A definitive decision from a court or jury may not be reached for several years.
T-Mobile’s rate increases follow similar moves by other carriers like Verizon and AT&T.
