Tracfone Lawsuit: Everything You Need to Know

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In recent years, Tracfone has become a popular prepaid wireless carrier in the US, providing affordable phone plans to millions of customers. However, Tracfone is facing a class-action lawsuit alleging it misled customers by charging them for services they did not receive. This article will discuss the Tracfone lawsuit in detail and provide you with everything you need to know.

What is the Tracfone lawsuit?

The Tracfone lawsuit is a class-action lawsuit filed against the company in the US District Court for the Southern District of New York. The lawsuit alleges that Tracfone used deceptive practices by charging its customers for services they did not receive, such as minutes, texts, and data. The lawsuit claims that Tracfone’s advertising and marketing materials were misleading and the company’s practices violated state and federal consumer protection laws.

Who is affected by the Tracfone lawsuit?

The Tracfone lawsuit affects millions of customers who have used the company’s prepaid wireless services. If you have purchased a Tracfone phone or plan since January 2016, you may be eligible to participate in the class-action lawsuit.

What are the specific allegations in the Tracfone lawsuit?

The Tracfone lawsuit alleges that the company misled its customers in several ways. Firstly, the lawsuit claims that Tracfone advertised “unlimited” plans that were not truly unlimited. Customers who exceeded certain data limits would have their speeds slowed significantly, rendering the plans useless. Additionally, the lawsuit alleges that Tracfone charged customers for services that were not provided, such as minutes, texts, and data. The lawsuit also claims that Tracfone failed to disclose certain fees and charges, leading to customers being surprised by unexpected charges on their bills.

What is Tracfone’s response to the lawsuit?

Tracfone has denied the allegations in the lawsuit and has vowed to fight the case in court. The company has stated that it believes its advertising and marketing materials are truthful and has complied with all state and federal consumer protection laws.

What is the current status of the Tracfone lawsuit?

The Tracfone lawsuit is currently ongoing. The case was filed in 2019 and is still in the pretrial stage. The court has yet to set a trial date, and it is unclear when the case will be resolved.

What should Tracfone customers do if they are affected by the lawsuit?

If you are a Tracfone customer and believe you have been affected by the lawsuit, you may be eligible to participate in the class-action lawsuit. You should consult a lawyer or legal expert to determine your eligibility and the next steps.

How can consumers protect themselves from similar situations in the future?

Consumers can protect themselves from similar situations by being vigilant and informed about the services they purchase. Before signing up for a prepaid wireless plan, consumers should research the company and read reviews from other customers. They should also carefully read the terms and conditions of the plan to understand any limitations or fees. If they suspect a company is engaging in deceptive practices, they should report it to the relevant authorities.

Conclusion

The Tracfone lawsuit is an ongoing legal case alleging that the company engaged in deceptive practices by charging customers for services they did not receive. The lawsuit affects millions of Tracfone customers who may be eligible to participate in the class-action lawsuit. Tracfone has denied the allegations and is currently fighting the case in court. Consumers can protect themselves from similar situations by being informed and vigilant about the services they purchase.

FAQs

What is a class-action lawsuit?

A class-action lawsuit is a legal case filed by a group of people with similar claims against a company or organization. Rather than each person filing an individual lawsuit, a class-action lawsuit allows multiple individuals to combine their claims into one case.

Can Tracfone customers still purchase their services?

Yes, Tracfone is still offering its prepaid wireless services to customers. The lawsuit does not affect the company’s ability to provide services, and customers can still purchase Tracfone phones and plans.

What compensation are Tracfone customers seeking in the lawsuit?

The compensation that Tracfone customers are seeking in the lawsuit is unclear at this time. The case is still in the pretrial stage, and the court will determine the amount of compensation if Tracfone is found liable.

Is Tracfone the only wireless carrier facing a lawsuit?

No, Tracfone is not the only wireless carrier facing a lawsuit. Other prepaid wireless carriers, such as Straight Talk and Net10, have also faced class-action lawsuits.

How can I stay updated on the Tracfone lawsuit?

You can stay updated on the Tracfone lawsuit by following news articles and updates on the case. You can also consult with a lawyer or legal expert if you believe you have been affected by the lawsuit.


On Thursday, a federal jury in Manhattan sided with Tracfone Wireless, Inc., which agreed to settle a lawsuit brought against them by FTC consumer watchdog, Tracfone Consumer USA. The settlement, which will be paid out from future settlement payments, means Tracfone Wireless is forced to pay out more than one billion dollars to their current and former customers who were victims of deceptive marketing practices at the hands of the telecommunications giant.

This is the second time the Tracfone Wireless has faced a lawsuit brought against them. On Jan. 21, a jury ruled in favor of the FTC, which found Tracfone Wireless guilty of false advertising and violations of the Fair Debt Collection Practices Act. In that case, the plaintiff, John H. Gorman, alleged that the telecommunications giant repeatedly promised consumers they could get free phones and services if they signed up for unlimited calling plans.

When customers reached certain monthly data limits, Tracfone’s marketing tactics took a dramatic turn. According to the complaint, the telecommunications giant to cut down on or limited the service speed of many of their mobile phone users in order to reduce the amount of data transfer, which it considered unnecessary.

Gorman charged that Tracfone violated the Fair Debt Collection Practices Act by falsely claiming that customers would never have to pay their phones back because their phone plans were not expensive and therefore did not require monthly fees. In addition, the company also failed to inform its consumers about the fact that the plans were expensive, despite being advertised to this effect. Finally, the suit also says that Tracfone failed to inform consumers that the service plans were not actually unlimited in terms of minutes, but rather depended upon the phone users’ data usage.

According to the complaint filed by FTC Special Counsel William Dunning, “John H. Gorman suffered a great deal of financial loss as a result of Tracfone’s deceptive and unfair conduct. Specifically, Gorman experienced significant financial strain because of the significant reduction in his monthly phone bill that he experienced after he reached the monthly limit for his data plan and, which reduced his ability to make purchases of products such as iPods and other electronic items on the Tracfone Mobile Phone program. He also endured anxiety and stress because he was unable to buy new clothing or shoes due to the fact that he would no longer be able to use his phone plan to pay for them.”

According to the FTC, Tracfone has been responsible for at least one other FTC lawsuit. Last November, the Federal Trade Commission settled a case involving allegations that the telecommunications giant had illegally taken funds from its prepaid debit card accounts in order to cover costs associated with their marketing campaign for its own business model. In that settlement, Tracfone agreed to pay out about $50 million to settle consumer complaints, which the agency said had caused consumers to suffer significant financial harm.

According to Tracfone’s attorney, Eric Seltzer, the company believes that it has met the requirements of the FTC and will continue to do so. Seltzer went on to state, “There is no reason why a company cannot advertise that their phones are not expensive, while still maintaining their commitment to customer satisfaction, offering great value, and providing consumers with outstanding services, including a number of incentives, as we have done with our prepaid cards. And while the company may not have intended to mislead consumers in this way, it certainly does not mean that they did not know what they were doing.”

While this settlement is expected to cause Tracfone the most significant financial damage possible, it is not expected to stop the company from continuing to offer the best wireless phones available to consumers. The company is committed to offering consumers the very best service available in order to keep them coming back to them.

6 thoughts on “Tracfone Lawsuit: Everything You Need to Know

  1. Now Tracfone is having huge technical problems with many users (see their Facebook page). Seems the conversion to Verizon has left many without service and calling the HELP lines isn’t helping.

  2. I started over 2 1/2 years ago, that the day before I was to get my 1000 minutes of talk time and 4.5GBs of data, I would take my phone display statement, showing what amounts I had then and using my computer’s camera, take a picture showing what they were and on the day my phone was to receive the 1000 minutes and 4.5GBs of data and take a picture of that, on my computer, as a record. Well in those 2 1/2 years, I NEVER RECEIVED ANYTHING CLOSE TO THOSE AMOUNTS, I would get 216 minutes or 700 minutes, but NEVER the 1000 minutes as promised and the data I would receive was USUALLY NONE or NEVER the amount as promised. And when I would call Safelink Wireless, they would always state ” OUR RECORDS show that you did receive all of your minutes and data and when I asked them to show me that billing statement or record, THEY WOULD SAY, WE DON’T GIVE THAT INFORMATION OUT. I believe that’s because it would show the actual amounts and that would make them complicit in ripping us off for years. I have filed many complaints with the BBB, where upon Safelink Wireless would say they contacted me and the matter was settled, WHICH WAS A FLAT OUT LIE! I also contacted the FCC & FTC about this matter and I will be filing a FOIL ACT & FOIA ACT to have OUR RECORDS AVAILABLE TO US and for the thousands of customers, they continue to rip off and cause STRESS & ANGER ISSUSES in regard to our health, after trying to talk to their AUTOMATONS, who combined share the I.Q. of a Pet Rock and getting nowhere, I and my group are skeeking monetary damages, for what is still owed to us, in minutes and data and the stress this company has put on us all!

    1. Safelink Wireless is a Bait and Switch Company, that could care less if we live or die and has been ripping off States and Governments for years, as well as it’s customers, like me for years. What a shame the phone we have they used a Sim Card Scam on us and we lost service, for close to a month, no way to call our doctors, for our blood work and to refill a prescription, no way to call for help, during that time period, what a shame the phone we use in case of an emergency, was NOT THERE FOR US.

  3. TracFone Scammed us Two Ways – with Two phones !

    1. Fought every step of the UnLocking Process.
    Made me call them and stay on for hours – burning up Minutes they were deducting from my account.
    FCC Could have forced them to Automatically Unlock when eligible – like Tracfone is required to do for Apple phones.
    I filed a complaint with FCC about their outrageous delaying acts.

    2. TracFone STOLE huge amounts of minutes from our account. I have a complete Log of all calls and minutes. The total is less than 500 minutes – but I paid for 1,500 minutes. Exactly like the gentleman’s story above they told me – ” OUR RECORDS show that you did receive all of your minutes and data and when I asked them to show me that billing statement or record, THEY WOULD SAY, WE DON’T GIVE THAT INFORMATION OUT.”

    These Tracfone owners (América Móvil, owned by the family of Mexican billionaire Carlos Slim) are flat out criminals and the FCC barely pretends to be paying attention.

  4. After months of phone service being intermittent I called Tracfone On Jan 5, 2023 to find out what was going on with service. Tracfone deleted all of my minutes, texts and data and two years of airtime. I had near 52,000 minutes that is well documented with text messages and chats with Tracfone but they have refused to replace all the services they deleted. Only 20,000 minutes were replaced. A complaint with FCC did nothing so now I had to pay $250 to request a arbitration Hearing. I very much would like an Attorney to represent me in New Mexico, but can not find one willing to do so.

  5. need a lawyer to sue or get me involved with the ongoing class action lawsuit against tracfone! I’ll admit that I accidentally damaged the cell phone that I was using beyond repair on the 5th; but I couldn’t transfer the units corresponding to the $45 monthly service plan that I paid on the 2nd to a refurbished phone that they had for $9.95 plus tax since they couldn’t authenticate my account! Subsequent emails from them said that they ACTUALLY TRIED TO CALL ME USING THAT SAME CELL PHONE NUMBER DESPITE THE FACT THE PHONE WAS DAMAGED BEYOND REPAIR ACCORDNG TO A PC CONNECTION LOCATION! I THREW THAT DAMAGED PHONE OUT LAST WEEK! ONE OF THEIR EMAILS SAID THAT THEIR ATTEMPTS TO FIND MY ACCOUNT RE-ROUTED THEM TO SEVERAL OTHER ACCOUNTS AND ANOTHER EMAIL SAID THAT THEY COULDN’T FIND MY ACCOUNT AT ALL! I want that $45 refunded and them disciplined for this esoteric situation! It’s interesting that I saw complaints about tracfone and about safe link on your website. Safe link is the other part of this complaint since after damaging the prior phone that I had I went to a street vendor who had the title safe link on his canopy of his booth. He sold me a phone for $30 which isn’t functional! It’s too hard to login to my yahoo account and I’m wondering who the legal owner of the phone is at this point since up to yesterday I was getting phone calls asking for a donna from a financial services place! Plus I need to keep pressing the on off button to maintain the screen display! I tried to explain these things to who sold me the phone when I asked for my money back; but I don’t know what he heard! Then he said something to the effect of “I bought the phone from a vendor. What do I expect!?” Then a woman that that man told me to see said “We’re not walmart!” in a sarcastic manner! I also want this money refunded. I also want the bbb of southeast florida disciplined for their lack of care and threatening to close out my account after I was profane towards one of the people at tracfone who emailed me! Who’s heard of a situation like this and THIS is all they consider!? Also keep in mind that I’m on ssi so finding a lawyer is hard for me and I don’t know if the FCC or the FTC will help. If who filed that class action lawsuit will help or if you know who’ll help, let me know.

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