New York and T-Mobile Settle Dispute Over 4G Plan Price Hikes. How to Get a Credit

T-Mobile has reached a settlement with the New York State Attorney General's Office over accusations that they failed to uphold price guarantees for their 4G plans, known as T-Mobile One, between January 2017 and April 2019. Customers who had these plans are now eligible to receive a credit equal to the last month's payment, plus a $25 gift card, or alternatively, receive a free 5G phone (worth up to $250) or a $150 credit towards a more expensive 5G phone if they continue using their current service.

The price hikes in question amounted to roughly $5 per line and impacted around 252,957 plans at the time. The Attorney General's investigation revealed that T-Mobile raised these rates in 2024, affecting a total of $38 million in value. New York Attorney General Letitia James expressed her disappointment, stating that T-Mobile misled hundreds of thousands of New Yorkers by promising a price guarantee, only to raise their rates just a few years later.

T-Mobile made the price guarantee claims in multiple press releases and a CNET video interview with CEO John Legere in 2017, where they explicitly stated they would never raise rates. However, the agreement highlights that T-Mobile breached New York State law, which requires companies to disclose terms clearly and conspicuously. The wording of any disclaimers about the price guarantee directly contradicted what a reasonable consumer would understand the offer to mean.

T-Mobile is required to notify eligible customers within 150 days starting on October 20th. After they've been notified, customers will have 45 days to decide whether they want to cancel their account (receiving the last month's payment and a $25 cash card) or continue their service (getting a free or discounted 5G-capable phone or a $150 credit towards a new phone). T-Mobile will also waive any transfer or activation fees for those who choose to continue their service under this agreement.