Mitigating Litigation Risks From “Junk Fee” Class Actions

The past two years have seen an expansion of federal and state regulatory and enforcement efforts concerning so-called “junk fees” or “hidden fees,” which are mandatory fees that a company fails to include in the initial displayed price for a good or service. These efforts have been accompanied by an increasing number of class action lawsuits against companies across various industries. With the increased regulatory focus on “junk fees,” as well as the slate of private plaintiff lawsuits attacking the same, companies should be proactive in reviewing their own pricing policies to ensure compliance with federal and state laws. This is a quickly shifting area of the law, which requires increased vigilance by companies.