TECH NEWS – The ground is hot under the mobile operator’s feet, adding fuel to the fire that has been burning all year…
This year has not been an easy one for T-Mobile in the USA. The company has already been hit over the head by the construction of a cell tower, somewhat suspicious sales tactics, and security breaches (and intrusions) due to the company’s negligence, but now the telecom company is facing a lawsuit, as 23 plaintiffs have filed a class action lawsuit against T-Mobile. They accuse the company of using deception and failing to properly disclose rates.
According to the lawsuit, the Regulatory Programs and Telco Recovery Fee (RPTR) charged by the carrier is misleading because it is not transparent about the nature of the fee. The plaintiffs allege that the fee is presented by the company as a mandatory fee, when in fact it is a price increase that is presented as a government-imposed fee because of its misleading name. This misrepresentation has sparked a controversy in which the company is accused of engaging in deceptive billing practices that violate consumer protection laws.
Prosecutors stress that the fees are designed to increase T-Mobile’s revenue, but are shown on bills as taxes and government-imposed amounts, when in fact the fees are purely discretionary. T-Mobile defended itself by pointing out that the RPTR fee is specifically listed on its website as an operating expense, which is a network infrastructure expense and not a government-mandated fee.
T-Mobile then cited other companies engaged in the same practice, such as Verizon (Administrative and Telco Recovery Charge), which also caused legal problems. Although the plaintiffs in the T-Mobile case tried arbitration, the company does not appear to have chosen that route. The lawsuit also highlights the fact that the telecom operator changed the tariff without informing consumers. The class action lawsuit seeks not only financial compensation for affected customers, but also jury trials and other legal costs. The outcome of this case could be interesting as T-Mobile’s terms and conditions require consumers to opt out of the class action and jury trial. If a dispute arises, it will be resolved through binding arbitration.
It will be interesting to see how this plays out for T-Mobile.
Source: WCCFTech
