T-Mobile class action alleges telecom provider charges hidden fees

T-Mobile hidden fees class action overview: 

• Who: A group of 23 plaintiffs filed a class action lawsuit against T-Mobile USA Inc.
• Why: The plaintiffs say the company charged them deceptive hidden fees.
• Where: The T-Mobile class action was filed in a California federal court.

A new class action lawsuit alleges T-Mobile has been charging a hidden fee to its wireless customers by misrepresenting it as a government-mandated charge.

A group of 23 plaintiffs filed the class action complaint against T-Mobile USA Inc. on Oct. 29 in California federal court, alleging violations of state and federal consumer laws.

The complaint alleges that T-Mobile has been charging a deceptive “Regulatory Programs and Telco Recovery Fee” (RPTR Fee) to its post-paid wireless customers, while misrepresenting it as charge handed down by the federal government.

According to the plaintiffs, the RPTR Fee — introduced in 2004 and increased multiple times since — currently costs customers $3.49 per line per month. 

The T-Mobile hidden fees lawsuit claims the company disguises this charge by grouping it with legitimate government taxes and fees on customers’ bills. The plaintiffs allege that the fee is neither mandated by government regulation nor justified by actual operational costs. Instead, it is allegedly “a concoction designed to increase T-Mobile’s revenue and pad its bottom line.”

Plaintiffs accuse T-Mobile of refusing arbitration

The plaintiffs also allege that T-Mobile’s Subscriber Agreement fails to properly disclose the fee’s amount, frequency, or per-line application. 

The agreement also states that T-Mobile can unilaterally adjust fees without notice, the lawsuit says. 

“Consumers have been duped into paying these hidden charges for two decades,” the T-Mobile hidden fees lawsuit says.

The plaintiffs claim that T-Mobile violated its own mandatory arbitration agreement. In 2023, the plaintiffs say they filed individual arbitration claims through the American Arbitration Association, seeking resolution for disputes over the fees. However, T-Mobile allegedly refused to participate or pay arbitration costs, leading the AAA to close the cases.

As a result, the lawsuit seeks to represent all current and former T-Mobile customers charged the RPTR Fee. The plaintiffs are suing for violations of the federal “Truth-in-Billing” rules and state consumer laws, and are seeking certification of the class action, damages, fees, costs and a jury trial.

Meanwhile, last month, T-Mobile confirmed it suffered a data breach amid a series of telecom breaches. The data breach was caused by Chinese threat actors accessing private communications, call records, and law enforcement information requests.

What do you think of the allegations in this T-Mobile class action? Let us know in the comments.

The plaintiffs are represented by Alex Winnick of Winnick Law PC, Evan Murphy of Murphy Advocates LLC and Maurice Mitts of Mitts Law LLC.

The T-Mobile class action is Carrie Beets et al. v. T-Mobile USA Inc., Case No. 2:24-cv-09344, in the U.S. District Court for the Central District of California.

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