RealReal Lawsuit Claims Luxury Resale Platform Charged Hidden “Junk Fees”

Case Overview: A new class action lawsuit claims The RealReal deducted a hidden $14.95 fee from refunds without showing it during checkout.

Consumers Affected: Customers who returned purchases and were charged the $14.95 Return Shipping and Processing Fee.

Court: Superior Court of the State of California, County of Los Angeles

The RealReal, the luxury resale platform known for selling authenticated designer goods, is being sued over claims that it charged customers hidden “junk fees” on returned items.

A California shopper, Marvin Fadrigo, filed a lawsuit in state court on July 30, accusing the company of adding a $14.95 “Return Shipping and Processing Fee” without proper disclosure. The complaint says customers only learn about the charge after initiating a return, even though no mention of it appears during checkout.

Customer Says $14.95 Return Charge Was Never Disclosed During Checkout

According to the filing, The RealReal promotes its site as a trusted marketplace where buyers can shop for luxury handbags, jewelry, and clothing with confidence in both quality and service. The platform’s checkout process lists the purchase price, taxes, and any visible add-on costs. Nowhere, Fadrigo says, does it warn that buyers will later be charged a $14.95 return fee.

Fadrigo alleges the company hides this charge until after purchase, calling it a “sham” that does not reflect any real expense tied to shipping or handling. The lawsuit describes the fee as an “unfair and deceptive business practice” that violates California consumer protection statutes.

The RealReal’s business model depends on trust, the filing notes, yet its return policy undermines that expectation by slipping in a charge that customers cannot reasonably anticipate.

Complaint Calls The RealReal’s Return Fee a “Classic Junk Charge”

Court documents refer to the $14.95 deduction as a “classic junk fee”, arguing it does not correspond to any actual cost of service. Fadrigo says the company earns millions in revenue each year from this undisclosed charge, which he believes was designed to inflate profits rather than cover legitimate expenses.

The lawsuit argues that the lack of transparency misleads buyers into thinking returns are free or low-cost, only for them to discover an unexpected fee once they request a refund. Because The RealReal markets itself as a premium brand with white-glove customer service, shoppers have no reason to suspect a hidden cost until it appears in their account statements.

Shoppers Argue the Practice Misled Buyers About Total Purchase Costs

Fadrigo argues that most customers do not comb through lengthy policy pages or fine-print footnotes when checking out online. They rely instead on what appears on the purchase screen. The RealReal’s omission of the $14.95 charge, he says, deprived consumers of the ability to make informed choices.

“Consumers expect transparency when buying online,” the lawsuit states. “Charging undisclosed return fees after the fact is deceptive, unfair, and contrary to law.”

The filing also notes that the company has more than 38 million members, meaning the potential number of affected shoppers could be large. Fadrigo is seeking to represent everyone who was charged the Return Shipping and Processing Fee within the applicable statute of limitations.

Case Mirrors Broader Concerns Over Hidden Online Charges

Government regulators have recently increased enforcement against “drip pricing,” a practice where companies advertise one price upfront but add unavoidable charges later in the checkout process. California’s Honest Pricing Law, enacted to curb these tactics, took effect earlier this year.

The RealReal lawsuit follows a similar case filed in May against Fiverr, an online freelancer marketplace accused of tacking on last-minute service fees not shown in initial prices. Plaintiffs in that case also described the extra costs as “junk fees” under the new law.

Fadrigo’s lawsuit says The RealReal’s practice fits the same pattern, using vague policy language and undisclosed surcharges to mislead customers and generate added revenue.

He is seeking damages, restitution, and equitable relief for affected customers. Fadrigo is asking the court to require The RealReal to update its website and disclose all potential return charges during checkout.

If granted, the order would prevent the company from adding hidden return fees in the future and compel repayment to anyone who was previously charged the $14.95 Return Shipping and Processing Fee.

Case Details

• Lawsuit: Marvin Fadrigo, et al. v. The RealReal, Inc.
• Case Number: 25STCV22523
• Court: Superior Court of the State of California, County of Los Angeles

Plaintiffs' Attorney:

• Jeffrey D. Kaliel, Amanda J. Rosenberg and Sophia G. Gold (KalielGold PLLC)

Have you ever been surprised by a hidden return fee from The RealReal? Tell us in the comments.