T-Mobile to pay $38 million in New York settlement

T-Mobile has reached a settlement with the New York Attorney General's office involving more than $38 million in reimbursements and benefits for customers. The agreement follows investigations into misleading advertisements made between 2017 and 2019, where the company promised monthly rates would never increase.

Despite these guarantees, T-Mobile began raising prices by approximately $5 per phone line in 2024. Investigators found that while the company used fine print to justify rate increases, these disclaimers did not excuse the initial misleading promises. Approximately 252,957 T-Mobile plans in New York were affected by these price hikes.

Affected customers may be eligible for various forms of compensation. Those using 4G phones who choose to cancel their plans can receive a refund of their last month's payment and a $25 gift card. Customers who remain with the provider may receive a free 5G phone valued at $250, a $150 credit toward a more expensive 5G device, or a freeze on their current plan prices.