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Check your inboxes, folks – T-Mobile may have just informed you of an impending regulatory fee increase that’s set to go down August 15th. It’ll go from $1.42 to $1.62. Sounds like chump change on paper. But the real story here is that there may be a clause for you to break your contract free of charge due to the change.
It’s the same story as Verizon’s change, except Verizon said the change wasn’t material. They reportedly offered to pay the cost of the increase ($.03) through the life of that current contract if a customer asks them to in order to avoid having to let folks out of their contracts without them having to pay. We’re not sure what folks on T-Mobile can do about this, but we’re eager to find out.
Hah at the verizon vs t-mobile comparison.
I managed to get out of a Tmobile contract a few years back with something like this. I’m on Tmobile again and I plan on using it again. Unlimited Data on Sprint here I come! :)
so really, all TMO needs to do in order to keep you as a customer is say, “Fine. We’ll pay the 20 cents a month.” Which adds up to, what, $4.80 over two years in the most extreme case?
I’m not lawyer, but I’m not sure if $4.80 over 2 years qualifies as a material change, and if regulatory fees (those are fees that T-Mobile has to pay the government) actually go up, what are they supposed to do? That’s what makes it a regulatory fee, rather than part of your actual service plan.
What I hate is how all these fees are on top of the quoted rates… they know you’re going to have to pay the fees, so why shouldn’t they have to advertise a rate that *includes* all the taxes and fees?
In the end, a cell phone plan advertised at $35 a month ends up costing more like $41… that sounds like false advertising to me.
Thats like saying the dollar store is false advertising because after sales tax it’s $1.08
And?
And what would be wrong with including that 8 cents (or whatever) in the price tag? I have never understood why the retail system separates out sales tax. After all, what I really want to know is “How much do I have to spend before I can walk out the door with this item?” Taxes are part of that, aren’t they?
And before you ask… I also hate seeing advertised “after rebate” prices, where you have to dig in to the fine print to find the actual price of an item (if it’s even advertised at all.)
some countries do include tax in to their retail price. so if something is tagged as a dollar, its actually worth 90 somewhat cents in product plus tax. and thats all you end up paying. But US retailers decided that not including tax was better way about doing business, so thats what we have to deal with.
No source? Bold claim given T-Mobile hasn’t officially said anything on their website or Twitter
That’s why there’s a question mark at the end of the title.
I just got my email from them, said $1.41 to $1.61 per line
Not mah $0.20, oh noes…what will I do with all dis lost monies?
I got a message saying it was increasing so it is true
Hate to be that guy, but what is a regulatory fee?
Dammit! There goes my next trip to the gumball machine! Oh, wait! No, that still wouldn’t get me a gumball. :P
we dont have sales tax here in oregon, so a dollar store trip is just that, only a dollar.
In the FAQ section of T-Mobile’s Legal Notices page they state the following:
“Can I terminate my contract without incurring an Early Termination Fee because of the Regulatory Programs Fee increase?
No. Early Termination Fees will apply if you choose to terminate because of the Regulatory Programs Fee increase.”
See http://www.t-mobile.com/promotions/pcmtemplate.aspx?passet=Pro_Pro_NSFLegal
An FAQ is not a contract.
5. Our Rights to Make Changes. This provision, which describes how changes may be made to your Agreement, is subject to requirements and limitations imposed by applicable law, and will not be enforced to the extent prohibited by law. Your Service is subject to our business policies, practices, and procedures, which we can change without notice. WE CAN CHANGE ANY TERMS IN THE AGREEMENT AT ANY TIME. YOU MAY CANCEL THE AFFECTED LINE OF SERVICE WITHOUT AN EARLY TERMINATION FEE (if applicable) IF: (A) WE CHANGE YOUR PRICING IN A MANNER THAT MATERIALLY INCREASES YOUR MONTHLY RECURRING CHARGE(S) (the amount you agreed to pay each month for voice, data and messaging, which does not include overage, pay-per-use or optional services (such as 411, or downloads), or taxes and fees);
(B) WE MATERIALLY DECREASE THE SERVICE ALLOTMENTS WE AGREED TO PROVIDE TO YOU FOR YOUR MONTHLY RECURRING CHARGE; OR (C) WE MATERIALLY CHANGE A TERM IN THESE T&Cs OTHER THAN PRICING IN A MANNER THAT IS MATERIALLY ADVERSE TO YOU. WE WILL PROVIDE YOU WITH AT LEAST 30 DAYS’ NOTICE OF ANY CHANGE WARRANTING CANCELLATION OF THE AFFECTED LINE OF SERVICE WITHOUT AN EARLY TERMINATION FEE (WHICH IS YOUR ONLY REMEDY), AND YOU MUST NOTIFY US WITHIN 14 DAYS AFTER YOU RECEIVE THE NOTICE, OR AS OTHERWISE PROVIDED IN THE NOTICE. IF YOU FAIL TO TERMINATE WITHIN THE RELEVANT TIMEFRAME, YOU ACCEPT THE CHANGES.
The terms and conditions that bambam quoted above say that changes to “taxes and fees” are an exception to being able to get out of a contract. BUT, if you look at the section in the terms and conditions that is titled “taxes and fees” you will see that they are defined as coming from the government only. This is confirmed if you check your t mobile bill section called taxes and fees, the RPF is not included here. It is listed under “other charges”. Pretty sneaky but I think it’s still grounds for termination.