This article is for informational purposes only and does not constitute legal advice. Consult with a qualified attorney to evaluate your specific situation.
The Short Answer
Yes, you may be able to sue—or join a class action—if a company charged you hidden fees that weren’t clearly disclosed before purchase. Depending on your state and the type of fee, you could have claims under consumer protection laws, the FTC Act, or state-specific junk fee regulations. Several major lawsuits against companies like StubHub, Ticketmaster, and hotel chains are already underway.
What Are “Junk Fees”?
Junk fees—also called hidden fees, drip pricing, or surprise fees—are charges added during or after a transaction that weren’t included in the initially advertised price. Common examples include:
- Resort fees: Hotels adding $30-50/night for amenities like WiFi or pool access that should be included
- Service fees: Ticketing platforms adding 20-30% on top of ticket prices at checkout
- Convenience fees: Charges for paying online, by phone, or using a credit card
- Processing fees: Vague charges for handling your transaction
- Destination fees: Rental car companies adding daily charges revealed only at pickup
- Administrative fees: Landlords, utilities, or service providers tacking on unexplained charges
- Delivery fees: Food delivery apps showing one price, then adding fees that don’t go to drivers
Why Hidden Fees May Be Illegal
Hidden fees can violate multiple laws:
FTC Act (Section 5)
The Federal Trade Commission Act prohibits “unfair or deceptive acts or practices.” Advertising a price that’s impossible to pay—because mandatory fees are added later—is considered deceptive. The FTC has made combating junk fees a top enforcement priority.
State Consumer Protection Laws
Every state has consumer protection statutes (often called “UDAP” laws—Unfair and Deceptive Acts and Practices). Many explicitly require “all-in” pricing or prohibit bait-and-switch tactics. States like California, New York, and Illinois have particularly strong protections.
New Junk Fee Regulations
The FTC finalized its “Rule on Unfair or Deceptive Fees” requiring businesses to disclose the total price upfront. Several states have passed their own junk fee laws with private rights of action—meaning you can sue directly.
Major Junk Fee Lawsuits Happening Now
StubHub (FTC + State AGs)
The District of Columbia Attorney General sued StubHub for displaying artificially low ticket prices, then adding substantial fees at checkout. Multiple state attorneys general have joined similar actions.
Live Nation/Ticketmaster (DOJ + Class Actions)
Beyond antitrust issues, Ticketmaster faces numerous class actions over its fee practices, with consumers alleging the company’s “service fees” and “order processing fees” are deceptive.
Hotel Resort Fees
Major hotel chains including Marriott, Hilton, and Hyatt have faced lawsuits over mandatory “resort fees” or “destination fees” not included in advertised room rates.
Car Dealership Add-Ons
The FTC sued Asbury Automotive and other dealerships for charging consumers for add-ons they didn’t agree to buy, including paint protection and fabric coating added without consent.
Industries With the Worst Hidden Fees
- Event tickets: Fees often add 25-40% to advertised prices
- Hotels: Resort fees average $25-50/night on top of room rates
- Airlines: Seat selection, bags, and change fees can double the base fare
- Rental cars: Insurance, fuel charges, and airport fees inflate costs
- Food delivery: Service fees, small order fees, and delivery fees stack up
- Apartments: Application fees, admin fees, and utility fees beyond rent
- Cable/internet: Equipment fees, broadcast fees, and regional sports fees
- Cell phones: Administrative fees and regulatory recovery fees
How to Build Your Case
If you want to take action against hidden fees:
- Document the initial advertised price: Screenshot or save the ad, listing, or quote showing the original price
- Save the final receipt: Keep records showing all fees that were added
- Note when fees were disclosed: Were they visible before you entered payment info, or only at the final checkout step?
- Calculate your damages: Add up the difference between advertised and actual prices
- Check for class actions: Search online—there may already be a lawsuit you can join
- File a complaint: Report to the FTC (reportfraud.ftc.gov), your state attorney general, and the Better Business Bureau
Your Legal Options
Join a Class Action
Many junk fee cases proceed as class actions because individual damages are small but widespread. You may receive notice if you’re automatically included in a class, or you can search for existing cases to join.
File in Small Claims Court
For fees under your state’s small claims limit (typically $5,000-$10,000), you can sue without a lawyer. This works best for one-time large hidden fees, like a surprise resort fee on a vacation.
File a Private Lawsuit
If you suffered significant damages or want to pursue statutory penalties under state consumer protection laws, consult with a consumer rights attorney. Many state laws allow you to recover attorney’s fees if you win.
Report to Regulators
Even if you don’t sue, complaints to the FTC and state attorneys general build cases for enforcement actions that can result in refunds for all affected consumers.
What You Could Recover
- Refund of hidden fees: The undisclosed charges you paid
- Statutory damages: Many state laws provide minimum damages (e.g., $500-$1,000 per violation)
- Treble damages: Some states allow double or triple damages for willful violations
- Attorney’s fees: If the law provides for fee-shifting
- Injunctive relief: Court orders requiring transparent pricing going forward
State-Specific Protections
Some states have particularly strong junk fee laws:
- California: SB 478 (effective July 2024) requires businesses to display the total price including all mandatory fees
- New York: Requires all-in pricing for short-term rentals and is expanding to other industries
- Colorado: Enacted comprehensive fee transparency requirements
- Minnesota: Strong consumer protection laws with private right of action
- Illinois: Consumer Fraud Act provides broad protections against deceptive pricing
Frequently Asked Questions
Is it illegal to charge fees that are disclosed at checkout?
It depends on when and how they’re disclosed. If mandatory fees are only revealed after you’ve invested time selecting a product or entering payment information, that’s likely deceptive “drip pricing”—even if technically disclosed before final purchase.
Can hotels legally charge resort fees?
The legality is increasingly challenged. While hotels argue these are legitimate charges for amenities, regulators and courts are finding that failing to include mandatory fees in advertised room rates is deceptive.
What if I agreed to the fees by completing my purchase?
Clicking “agree” doesn’t necessarily waive your rights. If the fees were deceptively hidden until late in the transaction, your consent may not be valid. Courts recognize that consumers often feel “locked in” after investing time in a purchase.
Are “convenience fees” for paying by credit card legal?
It depends on your state. Some states prohibit credit card surcharges. In states where they’re allowed, they must typically be disclosed before you begin the transaction and cannot exceed the merchant’s actual processing costs.
How do I find out if there’s a class action I can join?
Search the company name plus “class action” or “lawsuit.” Websites like ClassAction.org and TopClassActions.com track ongoing cases. If you’re part of a certified class, you may receive direct notice.
The Bottom Line
Hidden fees aren’t just annoying—they’re often illegal. The tide is turning against junk fees, with federal regulators, state attorneys general, and private plaintiffs all taking action. If you’ve been charged hidden fees, you may be entitled to a refund and additional damages.
Document deceptive pricing when you encounter it, file complaints with regulators, and consider consulting a consumer rights attorney—especially if state law provides for attorney’s fees in successful cases.
