TaskRabbit Lawsuit Claims Freelance Service Platform Charges Hidden ‘Junk Fees’ at Checkout

A proposed class action lawsuit alleges that TaskRabbit has misrepresented the freelance service rates advertised on its platform by hiding arbitrary “junk fees” from consumers until checkout.

The 16-page lawsuit claims that TaskRabbit “lures” users by listing flat hourly rates on its online marketplace only to quietly tack on to the advertised price what it calls a “Trust and Support” fee. According to the suit, consumers who use TaskRabbit, a platform that connects people with a network of “taskers” they can hire for personal assistance, handyman services, moving or delivery jobs, furniture assembly and other freelance work, only learn of this apparent “junk fee” once they have reached the final checkout page, and after they have already selected a tasker and entered information about themselves and the proposed task.

According to the TaskRabbit lawsuit, the platform’s use of “drip pricing”—a deceptive tactic whereby previously undisclosed fees are revealed to consumers incrementally during the purchase process—by way of adding the Trust and Support fee is a violation of California law and federal guidance about misleading “bait-and-switch” advertising.

By omitting the extra fee from the represented hourly rates, which are listed in bold font, and tucking it away as a fine-print line item late in the transaction, TaskRabbit has unfairly manipulated users into paying more than they were led to expect, after they have invested significant time navigating through the lengthy online process, the case says.

What’s more, the TaskRabbit “junk fees” provide no additional value to consumers and are not linked to any actual services performed, such as vetting taskers or facilitating communications, the complaint alleges.

“The fees vary inconsistently across transactions without regard to the scope, nature, or complexity of the underlying job, further underscoring their lack of legitimacy,” the filing asserts. “Rather than serving a legitimate business purpose, these charges function solely to pad [TaskRabbit’s] profit margins.”

TaskRabbit has profited at consumers’ expense, class action lawsuit says

The plaintiff, a California resident, claims to have been quoted hourly rates of approximately $39 and $71 when he hired two taskers for cleaning services last year. Although the tasker advertisements made no mention of added fees, the consumer was nevertheless charged Trust and Support fees of $28.88 and $10.76 for the respective services on top of the represented prices, the suit states.

The plaintiff argues that he would not have used TaskRabbit had he known the advertised prices were a “complete falsehood.”

TaskRabbit’s deceptive advertising tactics have left consumers like the plaintiff “footing the bill for outrageous costs” that were deliberately concealed to induce them to pay more than originally promised, the case contends.

Who’s covered by the TaskRabbit lawsuit?

The TaskRabbit class action lawsuit looks to represent all consumers who, during the applicable statute of limitations period, were charged fees beyond what was advertised on TaskRabbit’s website or app.

I paid extra fees on TaskRabbit. How do I join the class action lawsuit?

In general, there’s nothing you need to do to join, sign up for or add your name to a class action lawsuit when it’s first filed. If the case proceeds and is resolved with a class action settlement, the people covered by the deal—known as class members—will be notified and given follow-up instructions.

If you’ve used TaskRabbit or just want to stay in the loop with class action lawsuit and class action settlement news, sign up for ClassAction.org’s free weekly newsletter.

Looking for current class action lawsuits to join? Check out ClassAction.org’s class action lawsuit list.