How companies disclose prices and fees remains a hot topic. Recent years have brought new state laws, regulatory challenges, and plaintiffs’ lawsuits. The latest example is a suit against Stop & Shop filed in Massachusetts federal court this month.
According to the complaint, Stop & Shop charges a $3.95 pickup fee on online grocery orders but does not adequately disclose it until checkout. Shoppers see product prices and running cart totals as they shop, and on the Cart page the fee appears only below a “Checkout” button that customers can click without scrolling down to it.
The lawsuit relies heavily on Massachusetts’ updated fee disclosure regulation, which took effect last year. Among other things, the regulation generally requires businesses to disclose the total price of a product (including mandatory fees) when the price is first presented and to clearly disclose the nature, purpose, and amount of mandatory fees. (Click here for more details on the law.)