Hidden Fees (Junk Fees)

Hidden fees are charges you have to pay but that are not included in the price you were first shown. Common examples are "service," "convenience," "administrative," or "resort" fees added at checkout or on a monthly bill. The practice of showing a low price and adding fees step by step is sometimes called drip pricing.

Federal rules now cover part of this problem. The FTC's Rule on Unfair or Deceptive Fees, 16 C.F.R. Part 464, took effect May 12, 2025, and requires businesses selling live-event tickets and short-term lodging to show the total price, including mandatory fees, up front. The rule does not cover every industry, so fees on phone bills, rent, food delivery, and other services are still challenged mainly through state consumer protection laws and contract claims.

Hidden fee class actions usually argue one of three things: the fee was not disclosed when you agreed to buy, the fee's name misled you about what it paid for, or the company raised or added a fee in a way the contract did not allow. Refunds in these cases are often modest per person but can add up to large totals. For example, Verizon's "administrative charge" litigation resolved with a $100 million settlement.

Keep bills and receipts that show the fee and the price you were quoted. See our pages on T-Mobile and Verizon fee lawsuits, the Verizon administrative fee settlement, and real estate junk fees.