EcommerceFinance

New Class Action Accuses Ann Taylor and Loft of Drip Pricing, Hidden Processing and Handling Fees

Ann Taylor and Loft are facing a proposed Class Action that accuses their parent company, Premium Brands Opco LLC, of using hidden processing and handling fees on their e commerce sites in violation of new junk fee and honest pricing laws in California and Virginia.

Published: Mar 24, 2026 9:40 AM

By Jeanel Alvarado

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New Class Action Accuses Ann Taylor and Loft of Drip Pricing, Hidden Processing and Handling Fees

Credit: Ann Taylor

Ann Taylor and Loft are facing a proposed Class Action that accuses their parent company, Premium Brands Opco LLC, of using hidden processing and handling fees on their e commerce sites in violation of new junk fee and honest pricing laws in California and Virginia. The lawsuit argues that shoppers on AnnTaylor.com and Loft.com are ‘nickel and dimed’ through illegal drip pricing because the mandatory fees are only revealed at the very end of checkout, after consumers have invested significant time in the purchase journey.

How the alleged drip pricing works Filed on February 26, 2026, in the Southern District of New York (Sun et al. v. Premium Brands Opco LLC, Case No.

1:26‑cv‑01614), the 27 page complaint claims the retailer fails to clearly and conspicuously disclose a required processing or handling fee in the advertised product price or early in the transaction flow.

Instead, according to the filing, the sites display artificially low prices that exclude a bundled shipping and processing surcharge, which is then added at the final step before a customer places an order.

The plaintiffs say this practice misleads consumers about the true cost of their purchases and constitutes drip pricing designed solely to increase Premium Brands Opco’s profits…

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New Class Action Accuses Ann Taylor and Loft of Drip Pricing, Hidden Processing and Handling Fees

Ann Taylor and Loft are facing a proposed Class Action that accuses their parent company, Premium Brands Opco LLC, of using hidden processing and handling fees on their e commerce sites in violation of new junk fee and honest pricing laws in California and Virginia.

Unlock the rest of this story

More from Ecommerce

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