Free Shipping? Fanatics Hit with Class Action Over Allegedly Hidden ‘Handling Fee’ for Online Orders

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Fanatics faces a proposed class action that alleges the sports merchandise giant has falsely promised “free” or flat, low-cost shipping for online orders. 

The 15-page first amended complaint says that although Fanatics prominently touts “free shipping,” or flat, low-cost shipping, on its website, the retailer nevertheless adds a $1.99 “handling fee” to all orders. Per the case, Fanatics claims the handling fee is to cover “warehouse and packing costs.” 

The filing contends that it is unfair and deceptive for Fanatics to advertise “free” or low-cost shipping and then charge a handling fee given the company does not disclose the fee until the very last step in the ordering process and has falsely named the extra charge. 

Essentially, Fanatics’ “handling fee” amounts to a hidden shipping charge, the case alleges. 

“The deceptive addition of the $1.99 ‘Handling Fee’ renders Fanatics’ promise of FREE or a flat, low cost shipping false,” the complaint says. “Fanatics misrepresents the nature of the shipping charges assessed on the Fanatics website, by making representations that fail to correct reasonable understandings of its FREE or flat, low-cost shipping promises, and that misrepresent the actual costs of shipping charged to consumers.” 

As the case tells it, Fanatics’ failure to disclose up front to shoppers its hidden “handling fee” amounts to omission and concealment of material facts about the company’s shipping service. 

“Hundreds of thousands of Fanatics customers like Plaintiff have been assessed hidden shipping charges they did not bargain for,” the filing alleges, claiming Fanatics has gained an unfair advantage over not only consumers but other e-commerce sites who “fairly disclose their shipping charges.” 

Amid Fanatics’ four-step checkout process, a consumer is initially informed of the subtotal, shipping, taxes and total cost of their order, the suit explains. Per the case, it’s only later on that Fanatics discloses that the so-called handling fee has been added to the bill. 

The filing argues that although Fanatics calls the charge a “handling fee,” there is no “handling” of purchased items “separate and apart from the shipping processing,” and the defendant has “deceived consumers by stating otherwise.” 

“By assessing add-on fees for certain aspects of ‘shipping,’ Fanatics renders its Free Shipping or flat, low-cost shipping promises, false,” the suit alleges. 

The case looks to cover all consumers in California who, within the applicable statute of limitations period, ordered merchandise through Fanatics.com and were assessed a “handling fee.” 

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