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…
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