A class action lawsuit accuses T-Mobile of breaking its promise to customers by raising rates on plans previously advertised as having a "lifetime" price guarantee. The lawsuit alleges deceptive marketing and breach of contract.
Consumers Affected: T-Mobile customers who signed up for specific plans, including T-Mobile ONE and Magenta, with the understanding that their rates would never change.
Reason for Lawsuit: Allegations that T-Mobile violated its "lifetime" price lock guarantee by increasing rates on certain plans without customer consent, leading to financial harm.
Court: The class action lawsuit was filed in the U.S. District Court for the District of New Jersey.
A class action lawsuit has been filed against T-Mobile, accusing the wireless carrier of breaking its contract with customers by raising rates on plans previously advertised as having a "lifetime" price guarantee.
Plaintiffs Christopher Oddo, Harry Hyaduck, Sr., Larry Kahhan, and Gerald Dwyer claim that T-Mobile violated its promise to customers who signed up for specific plans, including T-Mobile ONE and Magenta. These plans were marketed with a guarantee that rates would never change.
Oddo, a long-time T-Mobile customer, signed up for the T-Mobile ONE plan in 2017, relying on the company's "price lock" promise. The plan was advertised with the slogan, "Now, T-Mobile ONE customers keep their price until THEY decide to change it. T-Mobile will never change the price you pay for your T-Mobile ONE plan."
However, in May 2024, Oddo received a text message that his monthly bill would increase by $5 per line due to a rate hike. With three lines, he is now being charged an additional $15 per month, a direct violation of the price lock guarantee.
Oddo filed a complaint with the FCC in May 2024. In response, T-Mobile stated that due to rising costs and inflation, the company made "small adjustments" to the pricing of some older plans. T-Mobile claimed it would reimburse the final month's service charge for customers who canceled their service within 60 days of the price increase. According to the T-Mobile lawsuit, this contradicts the original language of the "Un-contract" promise, which guaranteed that T-Mobile would not change rates for these plans.
"T-Mobile has breached its agreement with Oddo who has suffered monetary injury as a result of T-Mobile’s false representations and bait and switch tactics," the lawsuit states.
Specifically, the consumers argue that T-Mobile's actions constitute a breach of contract, false advertising, and deceptive business practices. The plaintiffs claim T-Mobile misled consumers into believing they had secured fixed rates for their wireless service.
They also allege that T-Mobile switched customers to more expensive plans without their consent in May 2024, despite guaranteeing the plans would last for life or as long as the customer remained with them.
“T-Mobile has reneged on its promises to its customers and raised rates for all the plans with rates that were promised to be guaranteed for life,” the T-Mobile class action lawsuit states.
This is not the first time T-Mobile has faced legal challenges related to its business practices.
Mediation failed earlier this year for a class action lawsuit related to T-Mobile's merger with Sprint. The lawsuit alleges that T-Mobile closed a number of minority-owned stores following the merger, despite public statements that it would be opening hundreds of stores.
In the T-Mobile price lock class action lawsuit, the plaintiffs aim to represent a nationwide class, as well as subclasses in Georgia, Nevada, Pennsylvania, and New Jersey, comprising T-Mobile customers who were promised a lifetime price guarantee on specific plans (T-Mobile ONE, Simple-Choice, Magenta, Magenta Max, Magenta 55+, Magenta Amplified, or Magenta Military) and experienced a price increase without their consent.
They are seeking actual damages, equitable relief, including restitution, injunctive relief, disgorgement of profits, and all other relief on behalf of the plaintiffs and all similarly situated individuals. The plaintiffs demand a jury trial and request injunctive relief and an award of actual damages for themselves and all class members.
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