Drip pricing, the practice of revealing hidden fees after a consumer has begun the purchasing process, has come under scrutiny. The Federal Trade Commission has labeled it a dark pattern, and California has taken steps to combat it with a new law effective from July 1, 2024.  Since then, more states have begun to scrutinize this practice and pass laws of their own.

In a recent lawsuit filed by the Attorney General for for the District of Columbia, the issue of drip pricing in online ticket sales was highlighted. The lawsuit alleges that these hidden fees can exceed 40% of the advertised price, making it challenging for buyers to make informed decisions and find the best deal.

This legal action underscores the importance for ecommerce businesses nationwide to review their advertising practices, purchase procedures, and compliance with relevant laws. Ensuring transparency in pricing is not only a legal requirement but also essential for building trust with consumers.

By being upfront about costs from the outset, businesses can foster transparency, empower consumers to make informed choices, and steer clear of potential legal pitfalls associated with drip pricing. For those unsure about where to begin, we have previously published an FAQ on how to evaluate compliance with these various laws.

 *Taylor Muentener is not yet admitted to the practice of law.