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

T-Mobile has reached a settlement with the New York Attorney General to provide up to $38 million in value to customers following allegations of misleading pricing. The investigation focused on marketing from 2017 to 2019, during which the company sold “Price Guarantee Plans” on its 4G network, promising that it would “never change the price you pay.”

In 2024, T-Mobile raised prices by approximately $5 per phone line for roughly 252,957 plans in New York that were still enrolled in these guarantee programs. As part of the agreement, T-Mobile will also pay nearly $100,000 to the state of New York.

Eligible customers may choose from several reimbursement options depending on their service and hardware. Options include a refund of the last month’s payment plus a $25 gift card, a free $250 5G phone, or a $150 credit toward a more expensive phone. Additionally, the company is required to honor current and future price guarantees and clearly disclose any limitations. T-Mobile is expected to contact affected residents directly with instructions on how to select their preferred settlement option.