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.
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.
Consistent with the email sent to Plaintiffs in April 2023, the May 2023 T&Cs themselves also clearly inform customers how to accept — or not to accept — the Terms and Conditions.
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.
I am still alive and T-Mobile is increasing the price for service by $5 per line. How is this a lifetime price lock?
T-Mobile customer
This is not the deal we signed up for and to change our price after guaranteeing it would be locked for life is fraudulent and a direct breach of contract
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.
If this is allowed to stand, then words have no meaning, businesses are able to lie directly and blatantly to the American people, and the FCC is apparently unable to protect the citizen[s] of this county from the unethical practices of business[es] they are charged with regulating.
T-Mobile customer
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.
T-Mobile’s May 2023 T&Cs include a prominent, easy-to-understand arbitration agreement, which provides customers with a consumer-friendly and speedy mechanism for resolving their disputes on an individualized basis:
By accepting these T&Cs, you are agreeing to resolve any dispute with us through individual binding arbitration or small claims dispute procedures (unless you opt out), and to waive your rights to a jury trial and to participate in any class action suit.
T-Mobile, October 2024
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.
I've had to call T-Mobile each billing cycle to have them credit my account for the difference (which after time and escalation to a supervisor they have done) and intend to stand firm that I will not pay the increase nor will I terminate service and accept their final month payment as 'settlement.'
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.
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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Things that are NOT allowed: