New Yorkers whose T-Mobile phone bills rose despite a price guarantee will have options to recover a payment, receive a phone credit or keep their rates frozen under a settlement announced Tuesday by Attorney General Letitia James.
The attorney general's office said the agreement is expected to provide more than $38 million in value to affected customers. Its investigation found that roughly 252,957 Price Guarantee Plans held by New Yorkers were affected when T-Mobile began raising rates by about $5 per line in 2024.
What customers can receive
Customers T-Mobile identifies as using 4G phones can cancel their plans and receive a refund of their last month's payment plus a $25 gift card. Those who stay can receive a new $250 5G phone at no charge or a $150 credit toward a more expensive model, according to the attorney general's office.
For other affected customers, including those who already upgraded to 5G, T-Mobile must offer the choice of canceling and receiving their last month's payment back or remaining on their plans with no price increase until 2029. The rate freeze for affected 4G customers who choose to stay lasts until at least 2029.
T-Mobile also will pay $98,000 to New York.
How the dispute arose
T-Mobile advertised the plans to 4G customers from 2017 to 2019 with a promise that it would never change the price they paid, the office said. The company later relied on terms in fine print on its website that it said allowed price increases. The attorney general's office concluded those terms contradicted the advertised guarantee.
“New Yorkers deserve clear and honest prices, not misleading offers with hidden fine print,” James said in the release.
Under the agreement, T-Mobile must honor its current and future price guarantees and clearly disclose any limits on those promises.
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