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ARTICLE · 12 JULY 2024

The Dangers Of Drip Pricing: Shining A Spotlight On Hidden Fees

When a consumer chooses to make a purchase based on a price displayed, they should be able to trust that price is accurate. Unfortunately, it is all too common for a shopper...

CanadaLitigation, Mediation & Arbitration

When a consumer chooses to make a purchase based on a price displayed, they should be able to trust that price is accurate. Unfortunately, it is all too common for a shopper to be bombarded by surprise fees which are tacked on just before or even after credit card information has been entered. These fees can go by many names; common ones include processing fees, booking fees, cleaning fees, or administrative fees.

However, regardless of the name a company chooses to call their fees, they are all examples of a practice called "drip pricing." Drip pricing is when a business offers a lower price to attract customers, but then includes a mandatory fee at payment making the price unattainable. These additional charges are unlawful, unless they are imposed by the government, such as sales tax.

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