A new class action lawsuit alleges that AnnTaylor.com and Loft.com are quietly adding mandatory processing or handling fees at the very end of checkout, a practice plaintiffs say amounts to illegal drip pricing and deceptive advertising. The case targets parent company Premium Brands OpCo LLC, arguing that the sites lure shoppers in with artificially low prices before revealing the true, higher cost only after customers have invested time in the purchase flow.
What The Lawsuit Claims Is Happening At Checkout
Filed as Sun et al. v. Premium Brands Opco LLC in February 2026, the 27 page complaint says shoppers on AnnTaylor.com and Loft.com are never shown a full, all in price, including the processing/handling fee, until the final step before placing an order. Instead, customers first browse products, see teaser prices, add items to cart, log in or create an account, and enter shipping, contact, and payment details, only to see an extra mandatory fee appear at the end, according to the suit.
The plaintiffs argue there is no way to purchase a product on the website without paying the Fee, making it a non optional charge that should be included or clearly disclosed up front. One California plaintiff says she bought two items from Ann Taylor in December 2025 and was charged a bundled shipping and processing fee of $8.95, while a Virginia plaintiff claims she paid a $16.95 shipping and handling fee on a Loft order in July 2025.
The Legal Theory: Drip Pricing And “Nickel And Diming”
The lawsuit frames the fees as a classic drip pricing tactic: showing only part of the price at first, then adding unavoidable charges at the end of checkout so consumers face a higher total than expected. It alleges that Premium Brands OpCo violated state consumer laws, including the California Consumers Legal Remedies Act and California Civil Code, by failing to disclose the mandatory fee in advertised prices or early checkout screens.
The complaint says this structure misleads shoppers into believing they are getting a better deal than they are, and that many will simply proceed with the purchase rather than restart their shopping journey elsewhere after discovering the extra cost. Top Class Actions summary notes that the case accuses Ann Taylor and Loft of nickel and diming customers through these processing fees in a way that is unfair and deceptive.
Who The Proposed Class Would Cover
The plaintiffs seek to represent A California and Virginia statewide class of individuals who purchased from AnnTaylor.com and/or Loft.com and paid the mandatory fee in the two years before the case was filed, and A California subclass covering purchases with the mandatory fee on or after July 1, 2024, and a Virginia subclass covering purchases on or after July 1, 2025.
The suit requests damages, restitution, and injunctive relief that would force Premium Brands OpCo to change its pricing and disclosure practices online. It sits alongside earlier and related litigation accusing Ann Taylor and Loft Outlet of false phantom discounts and misleading factory/outlet pricing, several of which have already resulted in settlements and voucher based relief for shoppers.
Why This Matters For Fashion E‑Commerce
Junk fees are a regulatory priority. The FTC and state regulators have increasingly targeted junk fees and drip pricing across sectors, and fashion e commerce players are now firmly in that spotlight. The total price needs to be clear early. Retailers are expected to show unavoidable fees up front, whether via included pricing or early, conspicuous disclosures, not bury them at the last click. Past outlet discount cases raise the stakes. With Ann Taylor/Loft already settling false discount class actions, this new processing fee case adds to a pattern of alleged pricing and promotional transparency issues.
The Ann Taylor/Loft suit is a warning shot: online checkout design, fee labels, and promotion language are now being examined through the same lens as more traditional advertising and dark pattern pricing can quickly turn into a multimillion dollar legal problem.
