Class action claims Loft and Ann Taylor websites charge hidden processing fees

Loft class action lawsuit overview:

• Who: Two consumers filed a class action lawsuit against Premium Brands Opco LLC.
• Why: They claim Premium Brands Opco charges hidden processing fees on its Loft and Ann Taylor and Loft websites.
• Where: The class action lawsuit was filed in New York federal court.

A new class action lawsuit alleges consumers who make purchases on the Loft and Ann Taylor websites are illegally charged hidden processing fees.

Plaintiffs Nary Sun and Floribel England filed the class action complaint against Premium Brands Opco LLC on Feb. 26 in New York federal court, alleging violations of consumer protection laws.

According to the lawsuit, Premium Brands Opco charges consumers a “Processing” or “Handling” fee at the end of the purchase process on its Ann Taylor and Loft websites, without disclosing the fee upfront.

Sun and England claim this practice, known as “drip pricing,” is deceptive and amounts to a bait-and-switch tactic.

“Businesses engage in drip pricing by advertising products at artificially low headline prices and then disclosing additional charges later in the buying process,” the Loft class action lawsuit says.

Sun and England claim Premium Brands Opco’s practice violates consumer protection laws in California and Virginia, which prohibit companies from advertising prices that do not include all mandatory fees or charges.

Lawsuit: Websites charge fees that are not taxes or shipping charges

The class action lawsuit argues that the processing fee charged by the Loft and Ann Taylor websites is not a tax or shipping charge, and therefore should be included in the advertised price.

The plaintiffs claim consumers are misled into thinking they are getting a better deal than they actually are, and that the fee reduces price competition.

Sun and England are looking to represent anyone in California or Virginia who purchased items on the Ann Taylor or Loft websites and paid the mandatory fee during the past three years.

They are suing for violations of California and Virginia consumer protection laws and seek certification of the class action, damages, fees, costs and a jury trial.

In other hidden fees, second-hand clothing marketplace Depop is facing allegations it advertised item prices that failed to include a mandatory “marketplace” fee at checkout.

What do you think of the allegations made in this Ann Taylor, Loft class action lawsuit? Let us know in the comments.

The plaintiffs are represented by Neal J. Deckant, Stefan Bogdanovich, Ines Diaz Villafana and Celina Reynes of Bursor & Fisher P.A.

The Loft class action lawsuit is Sun, et al. v. Premium Brands Opco LLC, Case No. 1:26-cv-01614, in the U.S. District Court for the Southern District of New York.

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