Recent class actions challenge hidden, ‘junk’ fees in food orders

Fees class action lawsuits overview: 

• Who: Consumers recently filed class action lawsuits against Chipotle, Uber, Whole Foods and Dunkin’. 
• Why: The class action lawsuits involve allegedly unlawful transaction fees. 
• Where: The class action lawsuits were filed in U.S. federal courts. 

Consumers recently filed class action lawsuits claiming several companies charged transaction fees for food items that were hidden and/or were unlawful. 

In addition to the complaints, the Consumer Financial Protection Bureau (CFPB) recently released a report that found payment processing companies charge transaction fees for school lunch programs that often hit low-income families the hardest. 

Chipotle charges ‘eye-popping’ service fee for online orders, class action claims

A pair of consumers filed a class action lawsuit against Chipotle late last month over claims the fast-casual restaurant charges “eye-popping” service fees to customers who place orders online. 

The class action lawsuit argues Chipotle disguises the service fees as sales tax in an alleged violation of state and federal consumer protection laws. 

“Chipotle is hiding its hefty service fees inside of a ‘tax’ burrito,” the Chipotle class action says. “This is textbook fraud.”

Uber violates Florida law with sales tax on delivery fees, class action says 

A consumer filed a class action lawsuit against Uber last month over claims the transportation company unlawfully charges sales tax on delivery fees. 

The class action lawsuit argues Uber violates Florida law by adding sales tax to delivery fees because the state allegedly only allows sales tax to be added to a tangible good and prohibits sellers from charging sales tax on a separate delivery fee. 

“Upon information and belief, defendant has unlawfully charged thousands of dollars, if not more, in taxes on optional delivery charges to consumers throughout the state of Florida,” the Uber class action says.

Class action claims Dunkin’ charged hidden fee for in-store dining

A pair of consumers filed a class action lawsuit against Dunkin’ last month over claims the coffee and doughnut chain charged hidden fees, including for in-store dining. 

The class action lawsuit argues Dunkin’ unknowingly charged customers a dine-in fee and other fees without disclosure. 

“Plaintiffs allege that the defendants, through a nationwide corporate policy enforced on its Dunkin’ franchisees, intentionally deceived consumers about a dine-in fee or other junk fee, as evidenced by the consistent experience of plaintiffs,” the Dunkin’ class action says.

Whole Foods hid bottle deposit fee for dairy item, class action claims

A consumer filed a class action lawsuit against Whole Foods Market Group in June over claims the grocer deceived its customers by hiding a bottle deposit fee charge on Ronnybrook Farm Dairy products sold by the store. 

The class action lawsuit argues Whole Foods conceals deposit fee charges on the Ronnybrook Farm Dairy products while at the same time “prominently” displaying retail prices on their price labels. 

“Despite the significance of the deposit fee to consumers, everything about its presentation is designed to, and has the effect of, concealing it from consumers,” the Whole Foods class action says. 

Fees added to school lunch payments harm low-income families, CFPB report says

The CFPB released a report in July that was focused on transaction fees charged by payment processing companies working with school districts for children’s school lunch programs. 

The CFPB says it found the payment processing companies charge so-called “junk fees” which often predominantly impact low-income families. 

“Transaction fees and other types of junk fees can take an economic toll on American families just trying to pay for basic school expenses, including school lunch for kids,” CFPB Director Rohit Chopra says in a statement. 

Have you been charged a hidden fee? Let us know in the comments.

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