New lawsuit against T-Mobile accuses the uncarrier of deceiving customers

T-Mobile has faced its share of challenges in 2024, including security breaches, price increases, and other actions that many view as a significant departure from the Uncarrier ethos of the past. Now, the company is dealing with a new class action lawsuit brought by 23 plaintiffs over alleged deceptive pricing practices.

The lawsuit specifically targets the Regulatory Programs and Telco Recovery Fee (RPTR Fee). Not only was the fee allegedly adjusted without clear notice, but the plaintiffs also claim there is a lack of transparency about what the fee actually covers.

The plaintiffs claim T-Mobile portrays the fee as a mandatory government charge but, in reality, it is merely a way to increase profits without officially raising prices. T-Mobile, however, asserts that it clearly states the RPTR Fee is for operational costs, with its website specifically mentioning that the fee covers network infrastructure expenses. The company also pointed out that similar practices are used by competitors, including Verizon.

Interestingly, Verizon previously settled a similar issue for approximately $100 million so that’s not necessarily the best defense. Will T-Mobile face a similar outcome? It’s hard to predict. Adding to the complexity, T-Mobile requires customers to waive the right to a trial in favor of arbitration. While the affected parties initially attempted arbitration, as per T-Mobile’s policy, the company declined to proceed with it.

Realistically, even if the lawsuit is settled, it’s unlikely to significantly impact T-Mobile’s bottom line. For customers, the payouts are expected to amount to just a few dollars in most cases, making this a lawsuit where arguably no one comes out ahead. Even Verizon continued to charge a similar fee even after it had to pay out in a settlement. In fact, it recently increased it once again!