Cookie Company Crumbl Hit with Class Action Over Allegedly Hidden Service Fee
Last Updated on September 11, 2023
Watson et al. v. Crumbl LLC et al.
Filed: August 21, 2023 ◆§ 2:23-cv-01770
Crumbl faces a proposed class action that alleges the gourmet cookie company carefully conceals a hidden 2.95 percent “service fee” on its mobile app.
California Business and Professions Code California Unfair Competition Law California Consumers Legal Remedies Act
California
Crumbl LLC faces a proposed class action that alleges the gourmet cookie company carefully conceals a hidden 2.95 percent “service fee” on its mobile app.
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The 35-page case says that Crumbl’s hidden service fee causes customers to pay more for the cookies than what’s advertised on the menu and constitutes an unfair and deceptive trade practice.
The suit describes Crumbl as the fastest-growing gourmet cookie business in the country, with more than 600 franchisee stores across 47 states. The Crumbl app is “a vital part” of the company’s business strategy, displaying the company’s rotating menu of flavors and facilitating orders, pick-ups, catering, shipping and gifting, the filing relays. Even when ordering in a store, the case says, a customer must still use the Crumbl app at the point of sale.
According to the complaint, however, every time a consumer orders through the Crumbl app, they are hit with a 2.95 percent service fee, an added cost that is not reflected in the company’s menu prices.
“Despite the fact that Crumbl uniformly charges the Service Fee through the Crumbl App, at no point is the Service Fee disclosed to consumers,” the lawsuit says.
On the mobile order screen, the case shares, a breakdown appears of a customer’s subtotal, taxes and fees, tip amount, and order total. Next to the taxes and fees line, however, is a small, light gray question mark icon that’s “nearly imperceptible to reasonable consumers due to its color and font size,” the suit relays. It is only upon clicking this icon that a consumer can learn that a 2.95 percent service fee has been added to their order:
“Given that the vast majority of American consumers already expect to pay sales tax on their purchase, Crumbl purposefully hides this charge among state taxes where it is unlikely to be discovered by reasonable consumers,” the lawsuit says.
The lawsuit looks to cover all individuals in the United States who made a purchase through the Crumbl app within the applicable statute of limitations period.
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