T-Mobile Faces Backlash Over Broken Price Guarantee

T-Mobile is facing customer outrage after announcing a $5-per-line price increase on plans that were marketed with a "lifetime" price guarantee. The move has sparked over 1,600 complaints to the Federal Communications Commission, ArsTechnica reports

Kathleen Odean, 70, of Rhode Island, is among the affected customers. "The promise was absolutely clear," she told Ars. "It's right there in writing: 'T-Mobile will never change the price you pay for your T-Mobile One plan.'" T-Mobile claims an FAQ page allows for price changes, but customers argue this caveat was never prominently disclosed. The company's 2017 press release touted the guarantee without mentioning exceptions.

Re:Read the contract

[smooth wombat]

Contracts don't necessarily mean what companies think they mean. Look at what happened to the Hooter's waitress who won a Toyota [saturdayeveningpost.com]. She settled a few years later and was able to go a car dealership and buy any Toyota she wanted [heraldnet.com].

T-Mobile can claim all they want what their contract says/said. But when their ads repeatedly said there would be no changes and no fee increase, they can't have it both ways.

Re: Read the contract

[Fons_de_spons]

Sure, but the marketing summary has to make sense. It cannot be misleading. Not sure why they increased prices. I guess it compensates inflation. That would make sense. The value of the money they pay is still the same after the price raise.

Re: Read the contract

[whoever57]

Not sure why they increased prices.

Greed. Corporate greed and the CEO's greed for increased bonuses.

Re:Read the contract

[taustin]

It's either breach of contract or false advertising. There's no other possibility, and they're both illegal.

See also

[YuppieScum]

Unlimited broadband*

*Limits apply

How is an FAQ page part of a legal contract?

[ixus2600]

How is an FAQ page part of a legally binding contract? Sounds like a company trying their best to squirm out of it to me.

T-Mobile One is a ripoff

[b0s0z0ku]

They have pre-paid plans that are $15 for unlimited domestic calling + texting and 5GB data ($25/mo for 8GB). Why would anyone bend over for $50 or more per month?

Re:

[Ol Olsoc]

They have pre-paid plans that are $15 for unlimited domestic calling + texting and 5GB data ($25/mo for 8GB). Why would anyone bend over for $50 or more per month?

Some folks live on their cellphones and chew up a surprising amount of data. 8 GB is paltry for these folk.

Re:

[Anonymous Coward]

Among other limitations, the prepaid plans don't include international roaming. Doesn't matter for a lot of people, but convenient if you do have a use for it. Also, when I switched to post-paid, the pre-paid plan didn't have unlimited calling and the 100 minute-a-month limit meant I basically couldn't do any business with companies that would ever involve waiting on hold.

Re:

[b0s0z0ku]

Prepaid is unlimited now ... international roaming doesn't matter when you gen get a local SIM for $5 to $10 for a month's data.

Honey Badger Don't Care

[gavron]

TO of TMO's line items in their P&L are Gross Income (asset) and Marketing (liability), collectively known as "churn."

They have done calculus as to
1. How many people are likely to stay at the new price and what will this net us extra?
+
2. How many people will sign up at the new base rate (which we'll raise again later)
-
3. How many will leave us
-
4. The "blue sky valuation" of our brand value for being dishonest fucks and how long will anyone really remember this?
-
5. Potential legal liability (already cove

Stupidity to believe

[NotEmmanuelGoldstein]

... "lifetime" price guarantee.

If you didn't look for similar wording in the contract you signed, you deserved to learn the truth the hard way. (Namely, a "reasonable person" would call that "puffery" and know that exceptions applied. More likely, a reasonable person would call it "false advertising" and look for an honest-sounding promotion.)

If one had the stupidity to believe the price wouldn't change for 25 (or more) years, particularly when inflation is high this year, one doesn't deserve to be on this planet.

Re:

[animaal]

There's some validity to that, but it applies even more so to a company that *offers* a lifetime price guarantee.