T-Mobile Rate Guarantee Arbitration: Unfair Price Hike?

Attorneys working with ClassAction.org believe T-Mobile may have violated consumer protection laws by raising rates for wireless plans that were advertised as having a price lock or “un-contract” promise—and they’re now gathering affected customers to take legal action.

According to reports, T-Mobile recently told customers with certain plans that their rates would be increasing this year, following another rate hike last June. However, many customers have voiced frustration with the T-Mobile price hikes, claiming their plans had a price lock in place or were subject to T-Mobile’s “un-contract” promise to not raise rates.

Attorneys believe T-Mobile’s price hikes may have violated various states’ consumer protection laws and are now pursuing mass arbitration against the carrier on behalf of affected customers.

T-Mobile Price Hike Class Action Lawsuit

A proposed class action lawsuit was filed against T-Mobile in July 2024 after the carrier allegedly increased rates for certain plans that were advertised as having locked prices, including the T-Mobile ONE Plan, Simple-Choice Plan, Magenta Plan, Magenta Max Plan, Magenta 55+ Plan, Magenta Amplified Plan and Magenta Military Plan.

According to the T-Mobile lawsuit, the carrier pledged in 2020 to not raise rates for three years in order to obtain regulatory approval of its proposed merger with Sprint. However, after the three-year period was up, T-Mobile allegedly began sending text messages and emails to customers around May or June 2024 informing them that its rates were increasing, including for plans that customers were told would never change, the suit says.

The plaintiffs in the T-Mobile lawsuit, which is still ongoing, claim to have opted out of the carrier’s mandatory arbitration clause (discussed further below).

Complaints About T-Mobile Price-Lock Increase

Following the T-Mobile rate increase in 2024, and another price change announced in March 2025, customers began posting complaints in online forums, claiming T-Mobile had broken its promise to never raise rates for certain plans with a price guarantee.

One customer wrote on a T-Mobile forum that they had signed up for the T-Mobile 55+ plan in 2017 based on the representation their monthly rate “was price-locked for life,” only to be told last year that the rate was increasing by $10.00 per month. The post received over 150 responses, with many customers agreeing that the T-Mobile 55 Plus price increase seemed like a “breach of contract and breach of trust.”

Another customer with the Magenta Military plan said they received a text message from T-Mobile earlier this year stating, “For the first time in nearly a decade, we’re making an update to the price of some of our older monthly service plans. Starting on 4/2/2025, your phone plan will increase by $5 per line per month. You’ll keep all the benefits you currently enjoy, and your rate plan type and bill due date remain the same.” The customer claimed the price change “seems to contradict” T-Mobile’s FAQs for its price lock and un-contract promise, which list the customer’s Magenta Military plan among a number of T-Mobile plans that qualify for a price lock guarantee.

Below is a sampling of additional complaints posted about the T-Mobile price hike [sic throughout]:

On the Magenta 55+ it says taxes and fees are included in the price $70 (with auto pay) and is locked in for life. I just got a text saying my price is going up $5/month per phone.  What happened to my price lock GUARANTEE?  You can charge more to new customers, but do not change the terms of our contract!!”
— rabarry, T-Mobile.com

Guaranted price lock? Part of the reason I went to T-MOBILE was because of their Guarantee that there would be no increases.  Now they are increasing the price because things cost more.   I understand that, but that is exactly the reason I went on this plan.  To avoid a price increase... Now I have to shop around for a new plan.  So dumb.”
— Bronco65, T-Mobile.com

I’ve been happy with T-Mobile for a few years now, and thought I was with an ethically operated company.  I’ve had no reason to complain.  However just today I also received a text that in 2 weeks they are increasing my price.  But when I signed up I was promised a guaranteed rate of $70 per month for 2 unlimited lines on Magenta for 55+ and promised the rate will not increase.  Now according to the text message, T-Mobile wants $10/month more than the guaranteed rate.  Sorry, the price increase and therefore the change in terms is not acceptable.”
— friendofonyx, T-Mobile.com

I’m on the older tmobile one plan and got the text. How can they do this? It literally says they cannot change the price.”
— mace, Reddit.com

No text yet but my account page shows our ONE 55 plan costing $10 per month more ($5 x 2 lines). I might not switch immediately but I did my homework last night—anticipating the worst—and now much better prepared to make a change once T-Mobile abuses us again. I understood I was on Rate Lock. So much for their false promises.”
— EdInWisconsin, Reddit.com

When I signed up for the Magenta 55+ plan, it was promised that the rate would ALWAYS BE THE SAME. This is false advertising!”
— MarieVictor128, Reddit.com

Is This a Lawsuit? What Am I Signing Up For, Exactly?

You are not signing up for a lawsuit, but rather a process known as mass arbitration. This is a relatively new legal technique that, like a class action lawsuit, allows a large group of people to take action and seek compensation from a company over an alleged wrongdoing. Here is a quick explanation of mass arbitration from our blog:

[M]ass arbitration occurs when hundreds or thousands of consumers file individual arbitration claims against the same company over the same issue at the same time. The aim of a mass arbitration proceeding is to grant relief on a large scale (similar to a class action lawsuit) for those who sign up.”

T-Mobile’s terms and conditions contain both a class action waiver and an arbitration clause requiring customers to resolve disputes via arbitration, a form of alternative dispute resolution that takes place outside of court before a neutral arbitrator, as opposed to a judge or jury. It’s for this reason that attorneys working with ClassAction.org have decided to handle this matter as a mass arbitration rather than a class action lawsuit.

How Much Does This Cost?

It costs nothing to sign up, and you’ll only need to pay if the attorneys win money on your behalf. Their payment will come as a percentage of your award.

If they don’t win your claim, you don’t pay.

How Much Money Could I Get?

There are no guarantees as to how much money you could get or whether your claim will be successful. However, certain state consumer protection laws provide that individuals whose rights are violated could be owed $100s.

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