T-Mobile is in hot water for falsely advertising a “Price Lock” guarantee for its 5G home internet service. Despite the promise not to increase prices. A competitor brought the issue to the Better Business Bureau (BBB) which ruled against T-Mobile
What’s Happening & Why This Matters
T-Mobile recently faced scrutiny from the National Advertising Program (NAD) for advertising its home service “Price Lock”. The promise was to not increase prices for customers on the Un-Contract Promise, but it was revealed to be false upon closer inspection. The fine print disclosed that it did not actually lock prices, but merely offered one month of free service under certain conditions. AT&T challenged the misleading claim, which appeared in print, online, and TV ads. The accusation and investigation lead the NAD to recommend that T-Mobile discontinue or modify the claim.
Impact
The ruling against T-Mobile by the NAD has put a dent in the company’s reputation, particularly after an earlier price hike for mobile customers. The ongoing concerns are especially alarming for 5G home internet users, as there is no guarantee that T-Mobile will honor its Price Lock guarantee, and they may face potential price increases.
TF Summary: What’s Next
Overall, T-Mobile’s false advertising and prior price hikes have caused damage to their reputation. For 5G home internet customers, the outcome is uncertain. The false advertisements garnered the belief that price increases can occur at any time. Customers are encouraged to monitor T-Mobile closely as regulators finalize and oversee T-Mobile’s actions.