When Linsey Dinh bought a $17 item on Depop in January 2025, she got hit with an extra $1.55 "marketplace fee" at checkout — a charge that wasn't mentioned anywhere in the listing. A year later, that $1.55 is the basis of a federal class-action lawsuit that could set the standard for how online marketplaces disclose fees across the entire industry.

The case, filed February 6 in the U.S. District Court for the Northern District of California, alleges that Depop's practice of revealing mandatory fees only at checkout violates California's Consumers Legal Remedies Act — specifically the state's Honest Pricing Law, which took effect July 1, 2024. That law makes it illegal for most businesses to advertise a price that doesn't include all required fees.

The legal term for what Dinh alleges is "drip pricing" — the practice of showing a low base price upfront and then layering on mandatory charges at checkout. It's the same tactic that concert ticket platforms, hotels, and food delivery apps have been criticized for. Now it's coming for resale marketplaces.

The eBay Complication

The timing makes this especially interesting. On February 18, 2026 — just 12 days after the lawsuit was filed — Etsy announced it was selling Depop to eBay for approximately $1.2 billion in cash. The deal is expected to close in Q2 2026, likely before any court ruling.

Depop's deadline to respond to the complaint is April 27. That means whoever responds — Depop under Etsy's ownership or Depop as a newly acquired eBay subsidiary — will be setting eBay's legal posture on fee transparency for one of its newest platforms.

eBay itself has historically been more transparent about fees, typically showing total costs including shipping and taxes before checkout. If the court rules against Depop's drip pricing model, eBay may need to restructure how Depop displays fees to buyers — or face ongoing liability.

Why California's Law Matters Nationally

California's Honest Pricing Law is one of the strongest fee transparency regulations in the country. It requires businesses to include all mandatory charges in the advertised price, enabling what legislators described as "direct, apples-to-apples price comparison" between vendors, according to court filings.

Because California is the nation's largest consumer market — and because most online marketplaces sell to California residents regardless of where they're headquartered — the practical effect of a ruling here would be national. If Depop loses, every marketplace that uses a similar checkout-reveal fee structure will need to evaluate whether it's exposed to the same legal theory.

The plaintiff is seeking class certification, damages, restitution, and injunctive relief. The potential class includes every California consumer who was charged a marketplace fee that wasn't disclosed in the listing price.

The Broader Marketplace Fee Problem

Depop isn't the only platform playing this game. Across ecommerce, the gap between the advertised price and the checkout price has become a persistent source of consumer frustration. Research from ClassAction.org shows a growing number of lawsuits targeting hidden fees in online retail, from processing charges on apparel sites to service fees on food delivery platforms.

For marketplace operators, the calculation has been straightforward: showing lower upfront prices drives more clicks and conversions. But California's law — and lawsuits like this one — are testing whether that short-term conversion lift is worth the legal risk.

The FTC has also been scrutinizing junk fees across industries, and several other states are considering similar honest pricing legislation. A ruling in Dinh v. Depop could accelerate that trend.

What to Watch

The April 27 response deadline will reveal whether Depop contests the claims or seeks a settlement. The eBay acquisition timeline adds urgency — eBay will want this resolved or at least contained before it takes full operational control.

For the broader retail and ecommerce industry, this case is a reminder that the era of hiding fees in the checkout flow may be ending. California drew the line, and a $1.55 marketplace fee is about to test where it holds.