Class Action Lawsuit Claims Consumers Are ‘Nickel and Dimed’ With Processing Fees On Ann Taylor, Loft Websites

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A proposed class action lawsuit alleges that the parent company of Ann Taylor and Loft fails to properly disclose a mandatory “processing” or “handling” fee added to the end of the online purchase process, in violation of the California Honest Pricing Law.

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The 27-page retail lawsuit contends that Premium Brands Opco, in its operation of AnnTaylor.com and Loft.com, deceptively fails to disclose the processing or handling fee upfront in its advertised product prices, meaning the company effectively displays to consumers an “artificially low price” that does not reflect the total cost.

According to the complaint, the challenged fee, although often bundled with the cost of shipping, has no relation to postage or carrier charges. Instead, the suit argues that the fee amounts to no more than drip pricing, as it exists solely to increase the defendant’s profits.

The case points out that the practice of drip pricing is illegal in many states, including California, after a 2024 amendment to the California Consumers Legal Remedies Act known as the state’s Honest Pricing Law. Similarly, the lawsuit also charges Premium Brands Opco with violating the Virginia Mandatory Fee and Surcharge Disclosure Law, a piece of legislation enacted in July 2025 that forbids retailers from advertising prices that are not inclusive of all mandatory fees and surcharges.

Related Reading: Junk Fees, Hidden Fees, Drip Fees Lawsuits & Arbitrations

When shopping on AnnTaylor.com or Loft.com, consumers are not shown the final price they are to pay, inclusive of the processing or handling fee, until the very end of the checkout process, the suit alleges. Per the case, the additional fee is revealed only after consumers have invested a significant amount of time entering all relevant information, like signing into or creating an account, shipping, contact information and payment details.

“In other words, the total price is never disclosed before a user reaches the final step in the checkout process prior to placing an order,” the complaint states.

The plaintiffs are two consumers who purchased clothes online from Ann Taylor and Loft and were subject to unexpected fees, the suit says.

According to the complaint, the first plaintiff, a California resident, purchased two items from Ann Taylor in December 2025 with a mandatory bundled shipping and processing fee of $8.95. The second plaintiff, a Virginia resident, purchased multiple items from Loft in July 2025 with a mandatory bundled shipping and handling fee of $16.95.

“The Fee is mandatory because there is no way to purchase a product on the website without paying the Fee,” the case relays.

The Premium Brands Opco class action lawsuit seeks to represent all individuals in California or Virginia who made a purchase from the Ann Taylor and/or Loft websites and paid the mandatory fee during the two years prior to the filing of this action.

Additionally, the suit looks to cover California and Virginia subclasses consisting of all individuals in either state who made a purchase from the Ann Taylor and/or Loft website and paid the mandatory fee on or after July 1, 2024 in California, or July 1, 2025 in Virginia.

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