Taking Out The Trash: New Junk Fee Laws Impact Pricing Practices

We are about to see an enormous uptick in federal and state regulation of "junk fees" – and the class action bar is undoubtedly preparing to act.

With federal rulemaking on unfair and deceptive fees set to go into effect later this year and new state legislation being passed almost every week (with California's law taking effect July 1, 2024), companies will need to pay attention to these evolving and ever more stringent rules. While the web of laws on this topic is complex, the federal government and state lawmakers agree on one key principle: the advertised price consumers see should be the price they actually pay. That means goodbye to "drip pricing" practices: no more vague add-on fees at checkout such as handling fees, processing fees, convenience charges and service fees.