From concert tickets and hotel rooms to food delivery and online shopping, the final cost Americans pay for certain types of purchases is often substantially more than what was advertised.
Frequently listed as “service fees”, “processing fees”, and other so-called mandatory fees, hidden fees (or junk fees) can substantially raise the cost of a product, service, or experience. But a growing wave of hidden fee lawsuits filed by consumers, states, and the federal government are challenging the practice, claiming deceptive pricing violates the law.
Junk fee litigation, aka drip pricing lawsuits, have been largely fueled by new rules from the Federal Trade Commission (FTC) and state consumer protection laws. In June, Illinois Governor JB Pritzker signed a consumer protection bill that bans junk fees, a law similar to those already in place in California and Virginia.
While numerous deceptive pricing lawsuits have been filed over the past decade, the litigation has rapidly expanded over the past two years, partly due to the high-profile case against Live Nation. Some cases have already resulted in multimillion-dollar settlements and verdicts, but many are just getting started.
With several class actions emerging this year, the potential scale of cases, and the litigation’s expected growth, it’s important for consumers to understand the relevant laws and the legal options available.
What are Hidden Fee Lawsuits About?
Most junk fee lawsuits don't argue that charging more through service fees is illegal; businesses generally remain free to charge service or processing fees.
Instead, drip pricing lawsuits allege companies violated consumer protection laws and federal regulations by advertising one price then revealing additional charges that often significantly change the final price. Plaintiffs say this practice is deceptive and prevents shoppers from accurately comparing prices.
In addition, since the extra costs usually show up right before consumers checkout – when they’ve already invested time in making their decision – lawsuits allege plaintiffs were pressured to complete their purchase.
What Laws Apply to Drip Pricing Lawsuits?
State junk fees laws, such as California’s Honest Pricing Law, combined with FTC rules on deceptive practices, have led to a steady influx of lawsuits. These laws typically require companies to advertise the total price (before taxes and reasonable shipping costs) and/ or disclose any mandatory fees to consumers up front.
Drip pricing lawsuits are based on allegations of violations of at least one of the following:
- FTC Rule on Unfair or Deceptive Fees
- State consumer protection and deceptive practices laws
- False advertising laws
Some cases, including those involving Live Nation and its subsidiary, Ticketmaster, also allege violations of antitrust laws.
Companies Being Sued for Junk Fees
While entertainment companies that sell tickets to sporting events, concerts, and festivals were the focus of hidden fee litigation for many years, cases now span multiple industries.
Some of the most prominent companies that have faced or are currently facing drip pricing lawsuits or government enforcement include:
- Ticketmaster and Live Nation
- StubHub
- Marriott
- Booking.com
- Airbnb
- U-Haul
- Ann Taylor
There are numerous other hotel chains, online ticket marketplaces, restaurants and food delivery companies, and event venues and attractions being sued. Although the allegations slightly differ, most lawsuits focus on advertised prices that don’t show consumers mandatory fees until checkout.
Recent Hidden Fee Lawsuits
Several significant cases have emerged in the past few years that allege companies violated consumer protection laws and other legislation by adding junk fees.
StubHub
In 2026, StubHub agreed to pay $10 million to resolve allegations that it violated the FTC Act and the FTC's Rule on Unfair or Deceptive Fees. The settlement also requires changes to how prices are displayed to consumers.
Live Nation and Ticketmaster
In 2024, the U.S. Department of Justice (DOJ) and dozens of state attorneys general filed a sweeping lawsuit against Live Nation and Ticketmaster for two distinct alleged violations.
First, plaintiffs claimed the companies had unlawfully maintained a monopoly. In April 2026, a jury ruled in favor of the DOJ, finding that Ticketmaster and Live Nation hold illegal monopolies and hid the true cost of tickets to consumers.
Marriott
Marriott has faced multiple lawsuits alleging consumers were not adequately informed about mandatory resort and destination fees added after advertised room prices. The Federal Trade Commission also brought an enforcement action challenging the company's pricing practices.
Who Can File a Hidden Fee Lawsuit?
Eligibility to file a hidden fee lawsuit varies. Individuals who think they may have a case should consult with a consumer protection attorney and watch for court-approved settlement notices.
Based on the litigation so far, consumers may qualify if they:
- Paid mandatory fees that were not clearly disclosed upfront
- Purchased tickets, hotel rooms, or other products covered by a settlement
- Live in a state included in a class action or government enforcement case
Many drip pricing class actions are still in the early stages, meaning no compensation has yet been approved.
Why Deceptive Pricing Lawsuits Matter
Hidden fees can substantially increase the final cost of a product, service, or experience. While ticket service charges sometimes increase prices by 30% to 40%, other industries have used similar practices. For example, hotel resort fees can add hundreds of dollars to the cost of a vacation.
For families already struggling with inflation and higher living expenses, those unexpected charges can significantly affect household budgets. There’s also the distrust and frustration among consumers who feel duped and forced into paying junk fees or forego the intended purchase entirely.
Most lawsuits are looking for more than refunds. Many aim to get court orders requiring companies to advertise the full price upfront, giving consumers a clearer understanding of the true cost before reaching the checkout page. Several states are already requiring this of companies after updating or introducing new consumer protection laws.
Unfortunately, the trend of consumers paying more than they should is not limited to junk fees. AI-gas price fixing lawsuits are also emerging. Legal experts expect court battles and settlement negotiations over transparent pricing to continue for many years.
For millions of Americans, the outcome of today's drip pricing lawsuits may determine whether the price they see tomorrow is finally the price they actually pay.
