Class Action Lawsuit Against T-Mobile Filed Over Dodgy Billing Tactics

Some ambiguous billing practices have led to a class action lawsuit against T-Mobile. Nearly two dozen customers are suing the cell phone service provider over a misrepresented line-item charge, known as the Regulatory Programs and Telco Recovery Fee (RPTR Fee).

The lawsuit against T-Mobile alleges the RPTR Fee is discretionary, and it wrongly increases customer costs. Yet, the wireless phone company’s billing purportedly portrays it as a mandatory government tax, when in actuality, it is not. On a customer bill, the charge is grouped alongside genuine government costs.

The plaintiffs claim T-Mobile’s RPTR Fee is only on the bill to boost profits and not for any necessary regulatory compliance. Currently, the fee is about $3.49 per voice line and $1.40 for each data line. The fee was supposedly added to customer statements around 20 years ago.

Purportedly, T-Mobile refused arbitration when confronted about the RPTR Fee. Yet, the cell company’s terms of service state such disputes must be resolved through mediation, which mandates customers give up their rights to file class action lawsuits.  

Despite Lawsuit, T-Mobile Will Likely Continue Charging RPTR Fee

T-Mobile is defending the RPTR Fee, saying it’s a common charge among all cell phone providers. According to the company, the fee is used for network maintenance and other operational costs, which are clearly defined on its website.

Even Verizon charges the fee despite its own legal trouble. Last year, Verizon was similarly sued over the RPTR Fee. While not admitting fault, the telecommunications behemoth paid out $100 million to avoid going to court. However, Verizon still charges it and has even raised it recently.

Earlier this year, several cell phone providers, including T-Mobile, were fined for misleading advertising related to unlimited phone plans and free phones. After an investigation involving 50 state attorneys general, it was revealed that several companies made claims that their wireless plans were “unlimited” when, in fact, they were not. Also, the providers offered “free” phones, but a cost was added, nonetheless.

The recent lawsuit against T-Mobile was filed to shine a light on the company’s potential deceptive pricing and inclination to hide fees. The class action suit could ultimately affect millions of the service provider’s customers. Should the plaintiffs prevail, T-Mobile will need to take a serious look at its pricing structure and its inability to provide clear billing terms.