California Junk Fee Investigation

Are Online Retailers Following the Junk Fee Ban?

If you’ve recently bought something online in California, you might have noticed a surprise fee added right before you clicked Place Order. Maybe it was called a “processing fee” or a “service charge”, but whatever the name, it wasn’t included in the price you first saw. That may be illegal under California’s new junk fee law.

What Are “Junk Fees”?

“Junk fees” are hidden charges that appear late in the online checkout process. You may think you’re paying one price, but then a mandatory fee is tacked on after you’ve already entered your payment details or shipping info. These fees are often not for shipping or taxes but are listed vaguely as “processing,” “service,” or “platform” fees.

California’s Law Against Hidden Fees

As of July 1, 2024, California law prohibits businesses from advertising prices that don’t include all mandatory fees, except for taxes and shipping. That means if a product is listed for $150, the seller must include all required charges in that upfront price. No hidden processing or surprise checkout fees allowed.

The California Civil Code § 1770(a)(29)(A) was designed to stop deceptive pricing and protect consumers from bait-and-switch tactics.

What Online Retailers Are Still Doing Wrong

Some large online platforms still show a low “Buy Now” price but only reveal additional required fees on the final checkout screen, after customers enter personal and payment info. These late-stage fees are often buried behind small dropdowns or links that most users don’t notice.

As a result, many California shoppers are misled, paying more than the price they were shown, and are prevented from easily comparison shopping.

Were You Charged a Hidden Fee While Shopping Online in California?

If you:

• Made a purchase from an online retailer on or after July 1, 2024

• Saw a lower advertised price at the start of checkout

• Were charged a required “processing fee” or other hidden fee late in the checkout process

• Didn’t see the full price until the very end

You may have a legal claim under California consumer protection laws.

Contact Us

We are currently investigating online retailers that may be violating California’s hidden fee law. If you were charged a surprise junk fee, we want to hear from you. Fill out the questionnaire below for us to get a better understanding of your concerns.

We offer confidential, no-cost consultations to evaluate your situation. If you have further questions, feel free to reach out to us via email at [email protected] or call us at (202) 470-3520.