Fiverr Hit With "Junk Fee" Lawsuit: Surprise Charges at Checkout?

Case Overview: A class action lawsuit accuses Fiverr of violating California's Honest Pricing Law by advertising one price for freelance services and then adding unexpected service fees at the final stage of checkout.

Court: Superior Court of the State of California, County of Alameda

Fiverr, the online marketplace that connects freelancers with clients, is being sued for allegedly tacking on hidden “junk fees” at the last second—right when consumers are ready to click “buy.”

A new class action lawsuit filed in California claims the company violates the state’s recently enacted Honest Pricing Law, which bans so-called “drip pricing.” That’s when companies advertise one price up front, only to add unavoidable fees at the final stage of checkout—fees that weren’t clearly disclosed earlier in the transaction.

The lawsuit argues that this bait-and-switch tactic not only frustrates consumers but also gives Fiverr an unfair edge over competitors who play by the rules.

Fiverr Accused of Hiding Service Fees from Customers

Marcus Johnson, a freelance client from Oakland, filed the proposed class action lawsuit. In August 2024, Johnson hired a designer on Fiverr to create a book cover and cartoon mascot. After carefully reviewing freelancers and comparing rates, he selected a service clearly marked as $35.

But when he reached the final screen to pay, Johnson was hit with an unexpected $4.93 “service fee”—a nearly 14% markup. Feeling committed to the purchase after investing so much time, he completed the transaction anyway.

Had the true cost been shown earlier, Johnson says he would have picked a different freelancer—or opted out entirely. He’s now asking the court to stop Fiverr from hiding these charges and to compensate California customers who’ve paid similar surprise fees

Lawsuit Alleges Violation of California's Honest Pricing Law

California’s Honest Pricing Law, which took effect in July 2024, makes it illegal for companies to advertise a price that excludes mandatory fees (aside from taxes and shipping). According to lawmakers and regulators, drip pricing misleads shoppers and undermines healthy competition.

“Consumers may spend time researching products or services based on what appears to be a low price, only to be ambushed with hidden charges just before they pay,” the complaint says. That kind of late-stage fee inflation, regulators warn, makes it harder for shoppers to comparison-shop—and gives deceptive companies an edge over honest ones.

Fiverr, the lawsuit claims, engages in this exact scheme: showing one price five times across multiple pages, then sneaking in a service fee only after the user has committed to buying.

Fiverr Joins Growing List of Companies Facing Hidden Fee Lawsuits

Fiverr joins a growing list of companies under fire for allegedly deceptive pricing. Online ticket seller Event Tickets Center is facing a lawsuit in New York over surprise checkout fees. Thumbtack, a site for hiring local pros, is being sued by small business owners who say they were billed for worthless leads and undisclosed charges.

Retail giants haven’t been spared either. Target and its delivery arm Shipt are in court over allegedly misleading service fees. Even household names like Zillow and Vanguard have been accused of tacking on surprise costs or hiding fees from customers.

In his lawsuit against Fiverr, Johnson wants to represent California residents who purchased freelancing services on Fiverr on or after July 1, 2024. 

Case Details

• Lawsuit: Johnson v. Fiverr, Inc.
• Case Number: 3:25-cv-03303   
• Court: Superior Court of the State of California, County of Alameda

Plaintiffs' Attorneys

• Andrew G. Gunem and Carly M. Roman (Strauss Borrelli PLLC)

Have you hired a freelancer on Fiverr? Were you surprised by extra fees at checkout? Share your experience below.