Is drip pricing or hidden fees at checkout illegal?

How the answer differs across 4 jurisdictions

The Short Answer

You can file a complaint with the Competition Bureau, which enforces Canada’s drip pricing ban under the Competition Act. Companies that advertise a low price but add mandatory fees at checkout may be breaking the law.

s. 74.011
Relevant section
Criminal offenc
Penalty type
Up to $10M
Max fine
5 years
Max jail time
AustraliaFull article
The Short Answer

No, drip pricing is illegal in Australia under the Australian Consumer Law because it misleads consumers about the total price they must pay.

ACL s. 18
Key provision
$10M
Max penalty
2023
ACCC crackdown
Mandatory
Fees must be included
European UnionFull article
The Short Answer

Yes, hiding important costs until the final checkout page is an unfair commercial practice under EU law.

Directive 2005/
Governing law
Article 5(2)
Unfair practice definition
Article 7(1)
Misleading omission
14 days
Right to withdraw
US FederalFull article
The Short Answer

No, federal law prohibits companies from charging hidden fees that were not clearly disclosed upfront. Both the Truth in Lending Act and the FTC Act require transparency and ban deceptive pricing practices.

No hidden fees
Legal standard
15 U.S.C. § 160
TILA authority
15 U.S.C. § 45
FTC Act authority
Upfront disclos
Required practice

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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.