There has been an unwritten rule applicable to some cell plans: Your monthly rate will not go up as long as you keep your current plan. Certainly, this is not true for all plans and all companies, but many people have benefited from this traditionally.
As some companies began raising rates, in May 2022, T-Mobile, the “uncarrier,” introduced Price Lock to formalize their policy.
In January 2023, here is how T-Mobile advertised “Price Lock.”
Even the fine print was pretty straight forward.
*MOUSE PRINT:
If you were in most of their major plans, your monthly rate would stay put. Period.
Now, in 2024, T-Mobile decided to redefine what it means by “Price Lock” for new customers or people switching plans.
*MOUSE PRINT:
The policy now says if they raise your price and you decide to switch carriers, they will pay your final bill, as reported here.
So to answer the question posed in the headline of this story, “When is a price lock not a price lock?” Answer: When T-Mobile offers it.
Metro by T-Mobile is a prepaid cell service provider (formerly Metro PCS) that also offers 5G home internet. In this commercial that began running last month, they promise an unbelievable deal — only $20 a month for internet service. And they say there are no catches and no “exploding bills.”
Click arrow to play commercial
No catches? Really?
*MOUSE PRINT:
In order to get the $20 internet service you have to (1) qualify for the federal Affordable Connectivity Program (ACP), (2) buy a monthly cell phone plan from Metro, (3) pay $25 the first month not $20, (4) sign up for autopay, and (5) be able to access the 5G service which is only available in certain cities/areas.
The federal program provides a $30 a month discount to those with households whose income is no more than 200% of the federal poverty level or if at least one person is on Medicaid, Section 8, or one of several other social welfare programs. Metro’s advertised $20 monthly rate already reflects that $30 discount.
On top of all that, this federal program is winding down this week and will no longer accept applications after February 7, 2024! The money for existing enrollees is expected to run out by May. And then, contrary to the Metro’s promise of “no exploding bills,” subscribers’ monthly bills will likely more than double.
Despite the FCC’s January 11 announcement of the end of the ACP program, Metro continued to run the commercials for their $20 internet service at least through January 26.
We asked Metro’s PR folks if it was fair to orally advertise “no catches” (1) when there were so many qualifications only disclosed in fine print, and (2) when the vast majority of viewers will not be eligible for the advertised price. The company responded in relevant part:
We are in the process of replacing this ad prior to the last day of sign ups. {A] key goal of this campaign [is] … to help educate millions of Americans … about a more affordable, flexible option for home internet. Of course, all the advertising always noted that ACP was eligible for “qualifying customers” in larger font.
I’m sorry, the net impression created by that ad is that Metro itself is offering $20 internet with no strings attached. The requirement of first needing to be approved for a federal program is anything but clearly disclosed (and certainly not in large type). It’s great if a company wants to promote a federal program to help lower income people with their bills, but just come out and say that’s what it really is.
In our view, then, this ad is extremely misleading as presented. We’ve asked the National Advertising Division (NAD) of Better Business Bureau National Programs to review the case.
Verizon Wireless has tentatively settled a class action lawsuit that alleged the company advertised a price for cell plans but then jacked-up consumers’ bills with hidden administrative charges.
*MOUSE PRINT:
The complaint specifically alleges:
The Administrative Charge is not disclosed to customers either before or when they agree to purchase wireless service from Verizon, and in fact the Administrative Charge is never adequately or honestly disclosed to customers.
The current amount of the Administrative Charge is $3.30 per line per month—a more than 8X increase from the original amount of the Charge [40 cents].
The first time Verizon customers can possibly learn about the existence of the Administrative Charge, or the amount of the Charge, is on the customer bills… [but] Verizon’s paper bills fail to mention the Administrative Charge at all, stating instead that a customer should “[c]heck your online bill for all surcharges, taxes and gov fees.”
[F]or years, Verizon explicitly and falsely stated on its monthly bills that the Administrative-Charge is a surcharge imposed on subscribers to “cover the costs that are billed to us by federal, state or local governments.”
For its part, Verizon has denied the claims, but says it has changed the way it describes those fees.
Verizon customers who purchased postpaid cell or data plans from the company between January 1, 2016 and November 8, 2023 are eligible to share in the $100-million proposed settlement. The maximum payment is $100, but that could be reduced based on how many consumers file claims and for how long they were a customer.
Claims must be filed by April 15, 2024 at the settlement website. Most customers were just notified via postcard of their eligibility to file a claim and were given a notice ID and confirmation code to enter on the website. If you did not receive that, here is the official claim form.
