New York class action says Route App slips 'junk fees' into shopping carts. Unexpected checkout costs may force households already stretching tight budgets to spend more than planned. by Morgan Taylor September 1, 2026 Photo Credit: iStock For shoppers who have watched an online total rise at the last step of a purchase, that familiar frustration is the subject of a class action lawsuit. The case targets Route App, which is accused of placing a "shipping protection" charge into online carts even though consumers did not explicitly agree to it. Here's what to know. As reported by Top Class Actions, plaintiffs Anthony Mertson and Michael Schirano filed the suit against Route App in New York federal court on June 3, claiming the company broke state and federal consumer laws. They allege that checkout software on e-commerce sites adds a "shipping protection" or "package protection" fee as shoppers move through checkout. According to the complaint, the key issue is that these charges appeared without shoppers first clearly opting in to them. The filing refers to the added costs as "junk fees." Consumers often use that term for charges they see as hidden, confusing, or difficult to avoid, and fees that surface late in checkout can make people feel pushed to finish the purchase instead of starting over. As with any lawsuit, these are allegations, and the court has not determined whether Route App violated the law. TCD picks " Quince spotlight. These best-sellers from Quince deliver affordable, sustainable luxury for all More background. Unexpected checkout costs may force households already stretching tight budgets to spend more than planned or abandon a purchase after investing time in the process. The Route lawsuit also reflects concerns many people have about how businesses use certain tools in online shopping. Apps and add-on protections may be presented as helpful features, but critics argue they cross a line when they are not clearly optional. If a fee is truly optional, consumers should be able to understand what it is, why it is being added, and how to decline it without confusion. What can be done? Screenshots of the checkout process may be useful if a shopper later disputes a charge with a retailer or payment provider. Lawsuits like this can also pressure companies to make online checkout more transparent. It's possible that public scrutiny may encourage businesses to simplify disclosures and avoid automatically adding extra costs. Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Route, a post-purchase platform for e-commerce brands, has appointed Arman Panjwani as chief financial officer and Alexandria Orr as vice president of enterprise revenue to support its expansion into large-scale retail. Panjwani previously served as chief strategy and financial officer at LawnStarter and led corporate finance at Snap during its IPO. Orr brings experience from Shopify and Salesforce in building enterprise sales organisations. The appointments follow a period of enterprise adoption growth for Route, which recently acquired Frate Returns to unify package protection, order tracking and returns services. Route has raised over $250 million from investors including Craft Ventures and Hedosophia, and serves over 13,000 brands protecting more than $20 billion in gross merchandise value.