Junk fees
Mandatory charges added to an advertised price, like service or resort fees. The FTC now requires ticket and short-term lodging sellers to show the total price.
Also called: hidden fees, drip pricing, surprise fees
Mandatory charges added to an advertised price, like service or resort fees. The FTC now requires ticket and short-term lodging sellers to show the total price.
What it means
Junk fees are mandatory charges that are hidden, added late, or described in a misleading way. The price you see first is lower than the price you pay. Examples include service fees on concert tickets, resort fees at hotels, handling fees on orders and convenience fees for mobile ordering. The practice is also called drip pricing, because fees drip in during checkout.
Not every fee is illegal. The legal question is whether a mandatory fee was clearly included in the advertised price or was hidden or misdescribed. A federal FTC rule effective May 12, 2025 requires businesses that sell live-event tickets or short-term lodging to show the total price with all mandatory fees. Taxes, shipping and truly optional add-ons can be listed separately. California's Honest Pricing Law, effective July 1, 2024, applies a similar all-in price rule to many other sales.
Outside those rules, junk fee class actions usually rely on state consumer protection and contract law.
What it means for you
Fee cases are often straightforward to qualify for. If you bought the ticket, used the app or held the account during the class period, you are usually in. Many settlements pay a flat amount with no receipt, and more if you can show what you paid. Keep order confirmations and statements, because they show the exact fee charged. If you spot a hidden fee, you can report it at ReportFraud.ftc.gov or to your state attorney general. Filing directly with the settlement administrator is free.
Example
Say a hypothetical ticket seller advertises seats at $60. At checkout it adds a $14 "service fee" and a $5 "processing fee," and the total reaches $79. A buyer sues, claiming the fees were mandatory and not disclosed clearly up front. If the seller settles, buyers during a set period might claim a flat amount with no proof. A larger amount for documented fees might be available, up to a cap.
FAQ
Not all fees are. The issue is whether a mandatory fee is disclosed up front in the price. The FTC's rule, effective May 12, 2025, requires live-event ticket and short-term lodging sellers to show the total price including mandatory fees. California has a similar law for many sales.
Under the FTC's rule, taxes and other government charges, shipping, and optional add-ons can be listed separately. Handling fees cannot be treated as shipping and must be included. Other laws may differ.
Related terms
- FTC: The Rule on Unfair or Deceptive Fees, Frequently Asked Questions
- FTC consumer alert: What the Rule on Unfair or Deceptive Fees means for you (May 12, 2025)
- California Attorney General: SB 478, Hidden Fees (Civil Code 1770(a)(29))
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.