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2 California campers accuse software giant of illegal ‘drip pricing’
The lawsuit, filed on Thursday in the U.S. District Court for the Northern District of California, alleged that Texas-based software company Tyler Technologies designed its interface to mislead users by advertising an initial price, only to add an undisclosed reservation fee at checkout — a practice known as “drip pricing.”
The plaintiffs, James Chowning of Oakland and Adam Fitzgerald of Yucaipa, said the practice violates Senate Bill 478, also known as the Honest Pricing Law, which took effect in July 2024. The law was designed to crack down on “junk fees,” prohibiting businesses from advertising a price that does not include all mandatory fees or charges. “Drip pricing” is banned under the law and is enforced through California’s Consumer Legal Remedies Act, False Advertising Law and Unfair Competition Law.
A business cannot advertise a “price that is less than what a consumer will have to pay for a good or service,” the California Attorney General’s Office wrote in May 2024.
