T-Mobile settles NY price guarantee case

T-Mobile (TMUS) has reached a settlement with the New York Attorney General over price increases on mobile plans that were marketed with a long-term price guarantee. The agreement establishes a reimbursement package with a maximum value of about $38 million for affected customers in New York whose 4G “Price Guarantee Plans” saw price hikes.

The Attorney General’s office began investigating the 2024 price hikes and determined that the company’s marketing of its price guarantees was misleading. The settlement is designed to compensate impacted subscribers and to put new constraints on T-Mobile’s future pricing practices for the affected plans in New York.

The New York Attorney General’s office has indicated that the settlement could deliver up to $38 million in value to eligible customers. About 252,957 plans in New York were subject to the 2024 price increases.

The settlement provides a menu of options, and the total value depends on which remedies individual customers choose. These remedies include refunds of a recent monthly charge, cash cards, and device or bill credits tied to upgrading to 5G service, as well as the value of a multi‑year rate freeze on eligible plans.

Eligible New York customers who choose to cancel their service can receive payment of their last month’s recurring charge. In some cases, they may also receive a $25 cash card as part of the reimbursement package. These options are available to customers determined to have been on affected plans when the price increases occurred.

Customers who prefer to remain with T-Mobile can opt for non-cash benefits. Those still receiving less than 5G service can obtain a free or discounted 5G-equipped wireless phone for each impacted line, or a credit of $150 toward a more expensive device in certain offers. Others can remain on T-Mobile service with the assurance that their monthly recurring charge on the current plan will not be increased until no earlier than May 30, 2029.

A central feature of the settlement is a binding rate freeze on affected plans in New York. T-Mobile has agreed not to increase the monthly recurring charges on these accounts until at least May 30, 2029. This protection applies whether customers remain on older 4G arrangements or have already moved to 5G service, provided they fall within the group identified as impacted by the 2024 price changes.

The agreement also requires T-Mobile to honor price guarantees going forward and clearly disclose any limits or conditions attached to similar promises. In addition to the customer-focused remedies, T-Mobile will pay money to the State of New York, including an identified payment of $98,000. The company has stated that it is pleased to resolve the matter and is focused on delivering value to its customers.