Optional Fee, Mandatory Problem: “Junk Fee” Class Actions Don’t Need A Drip-Pricing Violation Anymore

California’s Honest Pricing Law (SB 478) was supposed to settle the junk fee question. Since July 2, 2024, businesses have had to include all mandatory fees in the advertised price. The only things they can leave out are government taxes and fees, and reasonable shipping costs for physical goods. It seemed clear that fees for optional services fall outside the statute and need not be baked into the advertised price. Businesses read that as a green light.

As we have seen from recent litigation, however, the plaintiffs’ bar has found a way around that, and optional fees are not safe after all.

The Theory: “Optional,” But Not Really

The new wave of complaints targets add-ons like “shipping protection” and “package protection.” These fees are technically optional, but the plaintiffs say they are built into the checkout process in a way that makes them feel mandatory. The usual allegations are: