Applebee's Hidden Fees Class Action Lawsuit: What Consumers Need to Know About the Junk Fee Claims

Applebee's is facing multiple class action lawsuits over hidden fees on online delivery orders — charges that plaintiffs allege are deliberately concealed from consumers until the final stages of checkout. If you ordered food through the Applebee's website or app and were charged a service fee, delivery surcharge, or "CA delivery surcharge" without adequate notice, you may have legal rights under state consumer protection law. Here is what the lawsuits allege, which laws are at issue, and what affected consumers can do.

What the Applebee's Class Action Lawsuits Allege

Two separate class action complaints have been filed against Applebee's and its parent company, Dine Brands Global, Inc., over fee disclosure practices on online delivery orders.

The first case, Clark v. Dine Brands Global, Inc. et al., Case No. 3:24-cv-04679, was filed in the U.S. District Court for the Northern District of California on August 1, 2024. That lawsuit targets an 11-percent service fee that Applebee's allegedly adds to delivery orders without conspicuous disclosure. According to the complaint, the fee is placed strategically within a cluster of other charges on the final checkout screen and is accessible only by clicking a small icon next to the words "Service Fee" — which still does not explain what the charge actually covers. Once a customer completes their order, the itemized fee disappears entirely, lumped into a line labeled "Custom Fee," making it effectively invisible to consumers reviewing their receipt.

The second case, Drake v. Applebee's Restaurants LLC, Case No. 3:25-cv-04085, was filed on May 12, 2025, also in the Northern District of California. Plaintiff Michael Drake alleges that Applebee's adds three separate fees to delivery orders — a delivery charge, a service fee, and a "CA delivery surcharge" — none of which are disclosed until the payment screen at the end of the ordering process. The complaint alleges that the "CA delivery surcharge" is particularly deceptive because it is presented in a manner that implies it is a government-imposed charge, when it is not required by California law and instead functions as a revenue-generating fee for the company.

The "Junk Fee" Problem: What Is a Junk Fee?

A "junk fee" is an industry term for a charge that is added to a consumer transaction without adequate prior disclosure, provides no clear benefit to the consumer, and is designed to inflate the final price above what was advertised. The term has gained significant traction in both legislative and litigation contexts. President Biden specifically called on Congress to eliminate junk fees in his February 2023 State of the Union address, and California subsequently strengthened its Consumers Legal Remedies Act to more directly address drip pricing — the practice of revealing fees incrementally during a transaction rather than upfront.

In the Applebee's context, the "CA delivery surcharge" is characterized as a junk fee because it is not imposed by the state of California and does not correspond to any identifiable governmental charge. Consumers who see a fee labeled as a "CA delivery surcharge" are likely to assume it is a mandatory regulatory cost — which is precisely what the lawsuit argues makes it deceptive.

Which Laws Are Alleged to Have Been Violated?

Both Applebee's class action lawsuits invoke California state consumer protection statutes. The primary laws at issue are:

California Unfair Competition Law (UCL) — Bus. & Prof. Code § 17200

The California Unfair Competition Law (UCL), codified at Business and Professions Code § 17200, prohibits any unlawful, unfair, or fraudulent business act or practice, as well as unfair, deceptive, untrue, or misleading advertising. The statute is broadly interpreted by California courts and imposes strict liability for fraudulent conduct — meaning a plaintiff does not need to prove that the defendant intended to deceive, only that the practice was likely to mislead reasonable consumers.

Under the UCL, a plaintiff who has suffered actual financial loss as a result of an unfair business practice may seek restitution and injunctive relief. Civil penalties of up to $2,500 per violation may also be sought by the California Attorney General or district attorneys under Bus. & Prof. Code § 17206.

California Consumers Legal Remedies Act (CLRA)

The California Consumers Legal Remedies Act (CLRA), codified at Civil Code §§ 1750–1784, prohibits a specific list of deceptive practices in consumer transactions involving goods or services. The Applebee's lawsuits invoke the CLRA's prohibitions on misrepresentation of the price of goods and services and on failing to disclose material information that, if known, would affect a consumer's purchasing decision. Unlike the UCL, the CLRA allows plaintiffs to recover actual damages and, in cases of intentional violations, punitive damages.

California False Advertising Law — Bus. & Prof. Code § 17500

The False Advertising Law, Bus. & Prof. Code § 17500, prohibits any untrue or misleading statement made in connection with the sale of goods or services. The Applebee's complaints allege that prominently advertising menu prices that do not reflect the actual total cost of a delivery order — because mandatory fees are withheld until checkout — constitutes false advertising under this statute.

How the Alleged Scheme Works: A Step-by-Step Overview

The lawsuits describe a specific checkout flow designed to obscure the true cost of a delivery order:

The Clark complaint specifically notes that because the service fee equals 11 percent of the subtotal plus taxes, the total order amount is unlikely to appear "so abnormally high" that a consumer would investigate further — which the lawsuit argues is a deliberate design choice rather than an oversight.

Who Is Named as a Defendant?

Both lawsuits name Applebee's Restaurants LLC as a defendant. The Clark case also names Dine Brands Global, Inc. — Applebee's corporate parent — as a co-defendant. Although Applebee's operates through a franchise model, both complaints allege that Dine Brands and Applebee's Restaurants LLC maintain direct control over the online delivery ordering platform and intentionally designed the checkout process to conceal the service fee from consumers.

Who Is Included in the Proposed Class?

The Clark lawsuit seeks to cover all individuals in the United States who placed a delivery order on the Applebee's website or app within the applicable statute of limitations period and were charged a service fee. The Drake lawsuit similarly seeks to represent anyone in the United States who ordered food through Applebee's website or app and was charged a "service fee" or "CA delivery surcharge."

Neither case has yet received class certification as of the date of this article. Class certification — the court's formal approval of the class — is a separate procedural step that follows the initial filing and is required before the case can proceed as a class action on behalf of all affected consumers.

What Can Affected Consumers Do?

If you ordered food through the Applebee's website or app and were charged fees that were not disclosed until the final checkout screen, there are several steps worth considering:

First, preserve your order records. Screenshots of your order confirmation, email receipts, and any app-generated receipts showing the charges you were assessed are important documentation. Note whether any fees appear differently at checkout versus in your final receipt.

Second, review your payment records. Cross-reference the amount charged to your credit or debit card against the subtotal you saw when browsing the menu. A discrepancy that includes unexplained fee charges may be relevant to your claim.

Third, consult a consumer protection attorney. Because these cases involve California consumer protection law and federal class action procedure, consulting an attorney who handles consumer fraud or class action matters is the most reliable way to understand whether your specific situation gives rise to a claim. An attorney can also advise you on whether to join an existing case or file a separate complaint.

Finally, you may file a complaint with the Federal Trade Commission's Bureau of Consumer Protection at ReportFraud.ftc.gov or with the California Attorney General's Office if you are a California resident. These filings do not guarantee individual compensation but contribute to the evidentiary record regulators use when evaluating whether to take independent enforcement action.

The Broader Context: Junk Fees in the Restaurant Industry

The Applebee's litigation is part of a growing wave of consumer lawsuits targeting undisclosed fees in the food service and delivery sectors. Similar cases have been filed against Chipotle, alleging that it disguises a service charge as a tax on online orders, and against Uber, which faces claims over alleged double-charging of service fees. The FTC has identified drip pricing — the practice of revealing the true price of a product or service incrementally, adding mandatory fees only at the final stage of a transaction — as a deceptive practice that it is actively monitoring across industries.

For restaurants operating online ordering platforms, the legal exposure in this area is significant. California's UCL permits class-wide restitution claims, which means that if a court certifies a class and finds a violation, a company could be required to refund fees collected from every affected customer — not just the named plaintiffs.

Frequently Asked Questions About the Applebee's Hidden Fees Lawsuit

What is the Applebee's class action lawsuit about?

The Applebee's class action lawsuits allege that the restaurant chain adds hidden fees — including a service fee, delivery charge, and "CA delivery surcharge" — to online delivery orders without disclosing them to consumers until the final payment screen. Plaintiffs argue that this practice violates California consumer protection laws prohibiting deceptive and unfair business practices.

What is the "CA delivery surcharge" alleged to be a junk fee?

The "CA delivery surcharge" is labeled in a manner that implies it is a government-imposed California fee. According to the lawsuits, it is not required by any California law or regulation and instead functions as an additional profit-generating charge. Presenting a company fee as a government surcharge is a core basis for the junk fee allegation.

What is the service fee Applebee's allegedly charges?

According to the Clark lawsuit, Applebee's adds an 11-percent service fee to the combined subtotal and taxes of a delivery order. The fee is not disclosed prominently during the ordering process and requires clicking a small icon at the checkout screen to view — and even then, the company does not explain what services the fee covers.

Which laws does the Applebee's class action allege were violated?

The lawsuits primarily invoke the California Unfair Competition Law (Bus. & Prof. Code § 17200), the California Consumers Legal Remedies Act (Civil Code §§ 1750–1784), and the California False Advertising Law (Bus. & Prof. Code § 17500). These statutes collectively prohibit unfair, fraudulent, or misleading business practices and false advertising in connection with consumer transactions.

Who are the defendants in the Applebee's hidden fees lawsuits?

The defendants are Applebee's Restaurants LLC and, in the earlier case, its parent company Dine Brands Global, Inc. Although Applebee's uses a franchise model, both companies are alleged to exercise direct control over the online ordering platform where the fee practices occur.

Are the Applebee's lawsuits certified class actions?

No. As of the date of this article, neither the Clark nor the Drake case has received class certification. Both remain proposed class actions. Class certification is a procedural step that requires a court to find that the case meets specific legal criteria before it can proceed on behalf of all similarly situated consumers.

Do I need to be a California resident to be included in the class?

Both lawsuits seek to cover all individuals in the United States who placed a qualifying delivery order through Applebee's website or app, not only California residents. However, the specific California statutes invoked may affect how non-California claims are handled at the class certification stage. A consumer protection attorney can advise on how state-specific claims apply to your situation.

What is drip pricing and why is it illegal?

Drip pricing is a sales practice in which a company advertises a base price for a product or service and then reveals mandatory additional fees incrementally — typically at or near the end of the transaction. California's consumer protection laws treat drip pricing as a form of misleading advertising because it prevents consumers from making fully informed purchasing decisions at the outset of a transaction.

What is the FTC's role in junk fee enforcement?

The Federal Trade Commission has identified junk fees and drip pricing as consumer protection priorities and has taken enforcement action against companies in sectors including hotels, ticket sales, and financial services. The FTC does not typically intervene in individual class action lawsuits but its enforcement posture signals regulatory scrutiny of hidden fee practices across industries, including food service.

What should I do if I was charged undisclosed fees on an Applebee's delivery order?

Preserve your receipts and order confirmation emails, note any discrepancy between the advertised menu price and the amount ultimately charged to your payment method, and consult a consumer protection attorney to evaluate whether your situation supports a legal claim. You may also file a complaint with the FTC at ReportFraud.ftc.gov or with your state attorney general's office.

Can I sue Applebee's on my own instead of joining a class action?

Yes, individual consumers can bring their own claims under California consumer protection statutes or the laws of their home state. However, because the individual damages in hidden fee cases are typically modest — often amounting to a few dollars per transaction — class action litigation is generally the more practical vehicle for seeking accountability, since it consolidates the claims of all affected consumers into a single proceeding.

What happened to previous lawsuits against Applebee's over fees?

A separate earlier class action, filed in 2017 in the Eastern District of New York, alleged that Applebee's franchisees at certain New York City locations imposed an undisclosed mandatory service charge disguised as a tip. That case targeted in-restaurant dining rather than delivery orders. A federal judge denied a motion to dismiss that case in January 2018, allowing it to proceed.

This content is for general informational purposes only, is not legal advice, and does not create an attorney-client relationship. Joy Coleman is licensed in Georgia and New Jersey and is not licensed to practice law in California or all U.S. states. Readers should consult a qualified attorney licensed in their jurisdiction.

If you believe you were charged undisclosed fees on an Applebee's delivery order, a consumer protection attorney can help you understand your legal options. Use our Get Matched feature to connect with a qualified attorney in your area today.