T-Mobile faces class action lawsuit over hidden fee disguised as government charge since 2004
A new class action lawsuit against T-Mobile claims that the company has been concealing a fee as a government charge for the last two decades.
The complaint, submitted by 23 plaintiffs on October 29 in a California federal court, argues that T-Mobile has misrepresented its “Regulatory Programs and Telco Recovery Fee” as a mandatory fee imposed by the federal government.
According to the complaint, T-Mobile’s Subscriber Agreement completely omits details about the RPTR, including how much the charge is, when it is applied, and that it is billed per line.
Since its introduction in 2004, this “hidden” fee has gradually increased to $3.49 per month for each line. The complaint alleges that the fee is disguised within the “Government Taxes and Fees” section, falsely representing it as a governmental obligation or a necessary passthrough cost.
However, the lawsuit claims that the fee is actually “a fabricated charge intended to boost T-Mobile’s profits.”
Allegations regarding invalid fee explanations
The lawsuit also disputes the justification provided for the RPTR fee found in the subscriber agreement.
The agreement states that the fee helps cover costs related to government requirements and programs. However, the complaint argues this statement is “deceptive and unjust” because it lacks a clear standard, can fluctuate at T-Mobile’s discretion, and has a seemingly arbitrary cost of $3.49.
Furthermore, it claims that customers can only discover their fees by closely reviewing their bills after they have signed up for service.
“T-Mobile should have clearly disclosed the actual monthly fees for its post-paid wireless plans in all price representations and advertisements,” the complaint argues. “T-Mobile’s ‘RPTR Fee’ scheme has allowed, and continues to allow, it to effectively raise its prices without making those increases transparent. For two decades, consumers have unknowingly paid these concealed charges.”
T-Mobile clarifies online that RPTR is not a government fee
According to T-Mobile’s website, the Regulatory Programs and Telco Recovery Fee is stated to be “not a government tax or charge.”
The company explains, “This fee is collected by T-Mobile to help recover costs we have already incurred and continue to encounter.”
A T-Mobile spokesperson did not provide additional comments regarding the lawsuit, informing YSL News that they have no further statements on ongoing legal matters.