Dig Inn class action lawsuit overview:
- Who: Plaintiff J.R. Klein filed a class action lawsuit against Dig Inn Restaurant Group LLC.
- Why: Klein alleges the restaurant group hides delivery fees in taxes on its digital ordering platform.
- Where: The Dig Inn class action lawsuit was filed in New York federal court.
A new class action lawsuit alleges the Dig Inn restaurant group hides delivery fees in taxes on its digital ordering platform.
Plaintiff J.R. Klein filed the class action complaint against Dig Inn on April 20 in New York federal court, alleging violations of New York consumer protection law.
According to the class action lawsuit, the restaurant chain disguises its own corporate operating costs as taxes, misleading customers about the true cost of its food and services. When consumers order food for delivery, Dig Inn bundles its service fees into a line item labeled “taxes and fees,” Klein alleges.
The Dig Inn class action claims this practice exploits consumers’ belief that taxes are non-negotiable, government-mandated charges.
The complaint also accuses Dig Inn of using a deceptive “dark pattern” to artificially deflate the perceived cost of its menu items while secretly protecting its profit margins at checkout.
Dig Inn fee disguise is deliberate, lawsuit claims
Klein argues that Dig Inn’s fee disguise is deliberate, designed to make delivery orders appear cheaper than they actually are.
He claims the restaurant often advertises a $0.00 delivery fee on the checkout screen while quietly extracting the true cost of delivery from the consumer through the “taxes and fees” line item.
Klein claims he would not have completed his order had he known that the “taxes and fees” line contained a hidden corporate markup.
The class action lawsuit alleges that this practice is a breach of contract and unjust enrichment and violates New York General Business Law.
Klein is suing on behalf of a nationwide class of consumers who placed delivery orders through Dig Inn’s digital platform and were charged “taxes and fees” that included non-governmental corporate fees.
He is seeking certification of a nationwide class and New York subclass, actual damages for breach of contract and unjust enrichment, statutory damages of $500 per violation of false advertising, treble damages and injunctive relief.
In other alleged hidden fees, a class action filed earlier this year accuses Lowe’s Home Centers of failing to disclose a separate delivery fee added to the total price of products sold online.
What do you think of the allegations made in this Dig Inn class action lawsuit? Let us know in the comments.
The plaintiff is represented by Brett R. Cohen and Michael A. Tompkins of Leeds Brown Law P.C. and Mark Rabin and J. Hunter Bryson of Bryson Harris Suciu & DeMay PLLC.
The Dig Inn class action lawsuit is Klein v. Dig Inn Restaurant Group LLC, Case No. 1:26-cv-03236, in the U.S. District Court for the Southern District of New York.
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