diff --git a/packages/spacecat-shared-tier-client/src/tier-client.js b/packages/spacecat-shared-tier-client/src/tier-client.js
index f4ce92113..c7d000225 100644
--- a/packages/spacecat-shared-tier-client/src/tier-client.js
+++ b/packages/spacecat-shared-tier-client/src/tier-client.js
@@ -148,8 +148,9 @@ class TierClient {
       if (existing.entitlement) {
         const currentTier = existing.entitlement.getTier();
 
-        // If currentTier doesn't match with given tier and is not PAID, update it
-        if (currentTier !== tier && currentTier !== ENTITLEMENT_TIERS.PAID) {
+        // Only upgrade the tier when the customer is becoming PAID; otherwise keep as-is.
+        // Tiers: PRE_ONBOARD, PLG, FREE_TRIAL, PAID.
+        if (tier === ENTITLEMENT_TIERS.PAID && currentTier !== ENTITLEMENT_TIERS.PAID) {
           existing.entitlement.setTier(tier);
           await existing.entitlement.save();
         }
diff --git a/packages/spacecat-shared-tier-client/test/tier-client.test.js b/packages/spacecat-shared-tier-client/test/tier-client.test.js
index 1b55d9844..516e9c151 100644
--- a/packages/spacecat-shared-tier-client/test/tier-client.test.js
+++ b/packages/spacecat-shared-tier-client/test/tier-client.test.js
@@ -486,7 +486,7 @@ describe('TierClient', () => {
       });
     });
 
-    it('should upgrade PLG entitlement to FREE_TRIAL (PLG is not PAID, so tier updates)', async () => {
+    it('should NOT change tier when upgrading PLG to FREE_TRIAL (only PAID upgrades are applied)', async () => {
       const mockPlgEntitlement = {
         ...mockEntitlement,
         getTier: () => 'PLG',
@@ -500,8 +500,8 @@ describe('TierClient', () => {
 
       const result = await tierClient.createEntitlement('FREE_TRIAL');
 
-      expect(mockPlgEntitlement.setTier).to.have.been.calledWith('FREE_TRIAL');
-      expect(mockPlgEntitlement.save).to.have.been.called;
+      expect(mockPlgEntitlement.setTier).to.not.have.been.called;
+      expect(mockPlgEntitlement.save).to.not.have.been.called;
       expect(result).to.deep.equal({
         entitlement: mockPlgEntitlement,
         siteEnrollment: mockSiteEnrollment,
@@ -550,7 +550,7 @@ describe('TierClient', () => {
       });
     });
 
-    it('should upgrade PRE_ONBOARD entitlement to PLG (PRE_ONBOARD is not PAID, so tier updates)', async () => {
+    it('should NOT change tier when upgrading PRE_ONBOARD to PLG (only PAID upgrades are applied)', async () => {
       const mockPreOnboardEntitlement = {
         ...mockEntitlement,
         getTier: () => 'PRE_ONBOARD',
@@ -564,8 +564,8 @@ describe('TierClient', () => {
 
       const result = await tierClient.createEntitlement('PLG');
 
-      expect(mockPreOnboardEntitlement.setTier).to.have.been.calledWith('PLG');
-      expect(mockPreOnboardEntitlement.save).to.have.been.called;
+      expect(mockPreOnboardEntitlement.setTier).to.not.have.been.called;
+      expect(mockPreOnboardEntitlement.save).to.not.have.been.called;
       expect(result).to.deep.equal({
         entitlement: mockPreOnboardEntitlement,
         siteEnrollment: mockSiteEnrollment,