T-Mobile asked to stop advertising ‘price lock’ guarantee that doesn’t lock your prices

T-Mobile has been asked to stop advertising its “Price Lock” policy for its 5G internet service just months after raising prices. On Monday, the National Advertising Division (NAD) recommended that T-Mobile discontinue or modify the claim to explain how it “differs from a ‘price lock.’”

The NAD is part of the nonprofit BBB National Programs that evaluates claims presented in the ads industry. AT&T brought the challenge against the Price Lock claim, which appeared in numerous advertisements in print, online, and TV. In each instance, the description below the Price Lock claim says, “Get your last month of service on us if we ever raise your internet rate.” The NAD argues that this disclosure contradicts the main message of the “Price Lock” claim, as T-Mobile really isn’t locking in a customer’s price and will only guarantee them one month of free service if T-Mobile raises their bill.

The NAD recommends that T-Mobile change its claim to explain this or stop advertising it completely. In the past, T-Mobile often advertised certain internet and mobile plans as coming with a Price Lock guarantee, which is supposed to prevent T-Mobile from raising a customer’s monthly price after signing up.

However, T-Mobile changed this policy for new customers in January to only offer one month of free service in the event of a price increase. Around the same time, T-Mobile increased the price of its 5G home internet service. It later raised prices across its mobile plans. T-Mobile plans to comply with the NAD’s decision, but it told the NAD that the ads in question “appropriately communicate the generous terms of its Price Lock policy.”