Route Package Protection Lawsuit: Pre-Checked Shipping Protection Fees

Route App, Inc. sells shipping protection that covers lost, stolen, or damaged packages. Retailers, many on Shopify, install Route's widget in their carts. The lawsuits say the widget is set so the protection is turned on by default, and the fee is added to the order unless the shopper notices and turns it off.

Wolf-Bond v. TA3, Inc. and Route App

Filed March 26, 2025 in California state court and now in federal court as No. 2:25-cv-02665, this case was brought by a Texas shopper against swimwear retailer TA3 and Route. She says TA3Swim.com repeatedly told her shipping was free, yet a $3.75 Route Package Protection fee was added to her cart. The complaint says the fee appeared in the cart as if it were mandatory, and that once she clicked to proceed to checkout, there was no way left to remove it. It calls the charges fees that provide little real protection beyond what retailers and carriers already owe.

Mertson v. Route App, Inc.

Filed June 3, 2026 in New York federal court, No. 3:26-cv-01172, this case targets Route itself. It says Route promotes the fee to retailers as a way to increase profits, that its widget adds a hidden pre-selected toggle, and that a significant portion of the fee does not go toward shipping protection. It seeks to represent everyone who paid a Route shipping protection or similar fee within the statute of limitations.

Both cases are at early stages. As of September 2026, no court has certified a class, ruled that Route's fee is unlawful, or approved a settlement in either case. Route's own terms include an arbitration clause, and a main fight will likely be whether shoppers who never signed up for a Route account are bound by it.

The legal backdrop is shifting. According to the New York complaint, Shopify told merchants they could no longer automatically opt shoppers into additional charges as of February 2025. Regulators have also targeted hidden fees more broadly, and junk fee class actions have increased sharply in recent years.

• You paid the fee: your order shows a Route, Shipping Protection, or Package Protection line item.
• It was added for you: you did not click to add it, and it was pre-selected in the cart.
• You did not know it was optional: especially if the store advertised free or flat-rate shipping.
• Timing: the proposed classes reach back over the applicable statute of limitations before each filing.

You are unlikely to have a strong claim if you chose the protection on purpose, if the store clearly asked you to opt in, or if you used Route to file a claim and were reimbursed for a lost package. There is nothing to sign up for today; if a class is certified or the case settles, notice will go out, often by email to the address on your orders. For how that works, see how to join a class action lawsuit.

You do not need to have had a package go missing to be affected. The claims are about paying for protection you did not knowingly choose, so ordinary orders that arrived safely still count. On the other hand, if you filed a claim with Route and were reimbursed for a lost or damaged order, expect the company to argue that you received the service you paid for.

Package protection fees are usually small per order, like the $3.75 charge in the TA3 case, so any refund would likely be modest unless you placed many orders. A settlement might refund some or all of the fees paid, provide vouchers, or require checkout changes.

State consumer laws can add statutory damages. New York General Business Law section 349 lets a person recover actual damages or $50, whichever is greater, and a court may increase damages up to $1,000 for willful violations. California's Consumers Legal Remedies Act allows actual damages, restitution, and in some cases punitive damages.

Comparable junk fee settlements have generally paid small per-person amounts. See our Chick-fil-A delivery fees settlement page for an example, and why payouts are often smaller than expected.

Even small fees can add up for frequent online shoppers. Someone who placed 50 orders with a $3 fee paid $150. If you shop often at stores that use Route, count the orders in your email to estimate what you paid. That estimate is also useful if a settlement later offers larger payments to people who submit documentation.

• Restore Online Shoppers' Confidence Act (ROSCA): a federal law that requires clear disclosure and express informed consent before charging consumers online in certain transactions. The New York complaint cites it.
• New York General Business Law sections 349 and 350: ban deceptive practices and false advertising.
• California Unfair Competition Law, False Advertising Law, and Consumers Legal Remedies Act: cited in the TA3 case.
• Drip pricing: the practice of showing one price and adding charges later in checkout, which the FTC and several states have targeted in fee rules.

Route's likely defenses are that the fee is disclosed in the cart, that shoppers can turn it off, that the protection has real value, and that disputes must be arbitrated. The court will decide whether a reasonable shopper would understand the fee was optional.

States have also passed laws aimed at hidden and drip pricing. California's Honest Pricing Law, SB 478, effective July 1, 2024, generally makes it unlawful to advertise a price that leaves out mandatory fees or charges. The FTC's Rule on Unfair or Deceptive Fees, effective May 12, 2025, requires upfront total prices but applies to live-event tickets and short-term lodging, not general retail. Because package protection is optional rather than mandatory, the Route cases focus instead on whether consumers agreed to the charge at all, which is why the pre-selected toggle and consent under ROSCA are central.

There is no claim deadline because there is no settlement. The statute of limitations sets how far back a class can reach: generally 3 years for New York General Business Law 349 claims, and 3 to 4 years for California consumer claims.

For individual refunds, act quickly. Many retailers only issue refunds within a return window, and card issuers generally require a billing dispute within about 60 days of the statement date under the Fair Credit Billing Act.

Because both Route cases are proposed class actions, the time limit for individual claims of people who fit the proposed class is generally paused while the case is pending, under a long-standing federal rule. That pause can end if class certification is denied, so do not rely on it indefinitely.

Understanding what shipping protection covers helps explain why the lawsuits argue it has little value and helps you decide whether to buy it on purpose.

What you are paying for

Route and similar services promise to replace or refund an order that is lost, stolen, or damaged in transit. You pay a small fee per order, usually based on the order total, and file a claim with the protection company if something goes wrong. The retailer typically chooses whether to show the option and whether it starts turned on.

What you may already have

Before paying extra, consider the protections you already have:

• The retailer's own obligation: a store generally has to deliver what you paid for. If a package never arrives, most retailers will reship or refund, with or without add-on protection.
• Carrier coverage: many shipping services include some coverage for loss or damage.
• Your credit card: the Fair Credit Billing Act lets you dispute a charge for goods not delivered as agreed, in writing, within 60 days after the statement is sent. Some cards also offer purchase protection for theft or damage.

The lawsuits argue that because of these existing protections, much of the fee is profit rather than real coverage. The New York complaint alleges that a significant portion of the fee does not go toward shipping protection at all. Route disputes that, and courts have not decided it.

When it may make sense

Some shoppers choose protection for expensive items, deliveries to places with frequent package theft, or stores with strict delivery policies. If you decide to buy it, do so on purpose, read the claim terms, and save the order confirmation.

Spotting it at checkout

Look for a line or toggle labeled Shipping Protection, Package Protection, or with Route's logo in the cart, usually near the subtotal. Turn it off before clicking checkout if you do not want it. If it cannot be removed, or it appears after you were promised free shipping, take a screenshot. That kind of image is exactly the evidence these cases rely on.

1. Check your orders. Search your email for Route, Shipping Protection, or Package Protection to see how often you paid it.
2. Save receipts. Keep order confirmations and note any free shipping promises.
3. Ask for a refund. Contact the retailer about recent charges you did not choose. Some will remove the fee.
4. Turn it off next time. Look for the shipping protection toggle in the cart before you click checkout, since it may not be removable after.
5. Report it. You can report deceptive checkout fees to the FTC and your state attorney general.

Related pages: fake sale pricing lawsuits and junk fee lawsuits. If you placed many orders with this fee, a free case review takes about two minutes.

If you run an online store, check whether your checkout adds shipping protection by default. One of these complaints names the retailer as well as Route, and Shopify's February 2025 change shows platforms are moving away from automatic add-ons.