New York AG Announces T-Mobile Settlement Over Price Guarantee Claims
- T-Mobile reached an agreement with the New York State Attorney General’s Office on October 20, resolving claims that the carrier failed to honor price guarantees for T-Mobile One...
- The agreement pegs the total available relief at roughly $38 million in potential customer benefits.
- State investigators determined that T-Mobile promoted the affected plans as price guarantee offerings across at least two press releases and in a 2017 CNET video interview featuring then-CEO...
T-Mobile reached an agreement with the New York State Attorney General’s Office on October 20, resolving claims that the carrier failed to honor price guarantees for T-Mobile One plans on its 4G network between January 2017 and April 2019, cnet.com reported. The settlement follows an investigation by New York Attorney General Letitia James, which found that T-Mobile raised rates on those specific plans in 2024 by approximately $5 per line.
Settlement Terms and Estimated Relief Value
The agreement pegs the total available relief at roughly $38 million in potential customer benefits. That figure represents an estimate of what long-standing subscribers might claim, rather than a direct payout amount, according to a statement T-Mobile provided to cnet.com. As part of the resolution, the carrier will also make a one-time payment of approximately $98,000 to the Attorney General’s office. T-Mobile neither admitted nor denied the findings detailed in the office’s investigation.
Marketing Promises and State Law Violations
State investigators determined that T-Mobile promoted the affected plans as price guarantee offerings across at least two press releases and in a 2017 CNET video interview featuring then-CEO John Legere. In that interview, Legere stated that the company extended its un-contract offer to T-Mobile One Unlimited to ensure rates would never rise. The Attorney General’s office concluded that T-Mobile ran afoul of New York State law by failing to disclose terms clearly and conspicuously, rendering any disclaimers ineffective because they contradicted what a reasonable consumer would understand the offer to mean.
Customer Eligibility and Relief Options
The rate increases implemented in 2024 affected approximately 252,957 plans. Under the terms of the settlement, T-Mobile has 150 days starting from October 20 to identify and notify eligible customers. Once notified, subscribers will have 45 days to select from specific relief options based on whether they stay with the carrier or leave.
- Active customers who leave T-Mobile can collect a credit worth their last month’s payment alongside a $25 gift card.
- Subscribers who stay on and continue using older devices can receive a free 5G phone valued at up to $250, or a credit of up to $150 toward a more expensive 5G model for lines still operating on 3G or 4G.
- For customers choosing to upgrade or stay, T-Mobile will waive transfer and activation fees while keeping recurring monthly plan rates locked until 2029.