T-Mobile New York consumer settlement

T-Mobile has reached a settlement with the New York Attorney General to provide approximately $38 million in value to customers following investigations into misleading marketing practices. Between 2017 and 2019, the company marketed “Price Guarantee Plans” on its 4G network, promising that it would “never change the price you pay.”

Despite these assurances, T-Mobile implemented price increases of roughly $5 per phone line in 2024, affecting approximately 252,957 plans in New York. While the company utilized fine print to attempt to justify these hikes, investigators determined the initial promises were misleading.

As part of the agreement, T-Mobile will also pay nearly $100,000 to the state. Affected customers can choose from several reimbursement options, including a refund of their last month’s payment plus a $25 gift card, a free 5G phone valued at $250, or a $150 credit toward a more expensive device. The company is also required to honor current and future price guarantees and provide clear disclosures regarding any limitations.