Domino’s Sued Over Junk Fees

Recently a California consumer sued Domino’s for advertising one price on their menu but tacking on a junk fee to his bill that upped the price. [See complaint.]

*MOUSE PRINT:

On his bill was the expected sales/meals tax, but then a second line was labeled “Tax 2.” According to the lawsuit:

Moreover, once the “Tax 2” amount appeared on the receipt, the representation of the Junk Fee as a “tax” lead Mr. Murphy to believe that “Tax 2” was a mandatory charge imposed by the government that was required to be paid on the transaction by him. The representation of the
Junk Fee as a “Tax” was also material to Mr. Murphy.

When Mr. Murphy paid for the two pizzas and the breadsticks in cash at checkout, he was charged two “tax” amounts. In addition to sales tax, Mr. Murphy was charged a “Tax 2” amount that, although deceptively and misleadingly labeled as “Tax,” was in reality a Junk Fee charged by Defendants to offset their own business expenses.

Under California’s “Honest Pricing Act” additional junk fees are illegal because businesses are prohibited from “[a]dvertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges.” Cal. Civ. Code § 1770(a)(29)(A).

Domino’s is being sued for unfair business practices, violation of the new complete pricing law, and the state false advertising law. The consumer’s lawyers are seeking refunds and damages, and an order stopping Domino’s from continuing to charge any illegal extra fees.