A new class action lawsuit has landed on Fiverr's doorstep, and if you've purchased freelancing services on the platform recently, you might be part of it.
Plaintiff Marcus Johnson filed this legal action in Alameda County, California, claiming the freelancing platform conceals added 'junk fees' until checkout.
Johnson's experience tells the story: he selected freelance services advertised at $35, only to discover a $4.93 service fee tacked on at checkout, bringing his total price to $39.93.
The lawsuit accuses Fiverr of advertising one price throughout the purchase process but adding mandatory service fees at the final stage, allegedly misleading the millions of freelancers and consumers who use the digital marketplace.
How Fiverr's "Drip Pricing" Works
Let's walk through the checkout process Johnson described in the legal action to understand how Fiverr's platform operates.
When the plaintiff browsed logo design services on Fiverr, he saw a $35 price displayed prominently, which appeared no fewer than five times before he reached checkout:
- At the "initial service" listing
- In the "About this gig" section
- On the "Continue" button
- In the "order options" page
- In “multiple locations” throughout the purchase flow
However, only after Johnson invested time researching the freelancer, reading reviews, and making his selection did Fiverr reveal the added 5% to 20% service fee, appearing only at the final stage when he was psychologically committed to the purchase.
This practice, known as "drip pricing," isn't unique to Fiverr. Other platforms like DoorDash, Lyft, and Airbnb have faced similar accusations.
However, what makes this case particularly interesting is its timing with California's new consumer protection laws.
California's Honest Pricing Law: The Legal Foundation
Senate Bill 478, which took effect on July 1, 2024, changed the game for fee disclosures in California. The law demands that the advertised price must be the full price - no surprises at checkout.
Under Cal. Civ. Code § 1770(a)(29), businesses cannot advertise, display, or offer a price that doesn't include all mandatory fees. The only exceptions are government-imposed taxes and reasonable shipping charges for physical goods.
California considers this pricing a form of "bait-and-switch advertising." The state's Attorney General has made it clear: if you choose to list a price for a service, that price must be the entire amount the consumer pays.
The law specifically targets the deceptive practice of showing one price to attract consumers and then revealing additional charges when they're ready to complete the transaction.
This mandate directly addresses the allegations against Fiverr in the class action lawsuit.
The Four Legal Claims Against Fiverr
The proposed class action lawsuit brings four legal claims against the freelancing platform.
Consumer protection violation
The first claim alleges that Fiverr violates California's Consumers Legal Remedies Act by advertising prices without mandatory fees, enacted to protect consumers from deceptive business practices. The lawsuit argues that hiding service fees until the end of the transaction violates these protections.
False advertising
The second claim focuses on misleading pricing practices under California's False Advertising Law. The lawsuit alleges that Fiverr knowingly advertises prices lower than what consumers actually pay, constituting false advertising.
Unfair competition
The third claim addresses unlawful business practices under the Unfair Competition Law. This allegation encompasses the violations of other laws and the unfair nature of the bait-and-switch tactics that harm consumers and honest businesses.
Unjust Enrichment
The final claim argues that Fiverr has been unjustly enriched by retaining fees obtained through deceptive means and seeks restitution of fees paid by class members.
Freelancers Beware - Hidden Fees May Affect Client Relationships
According to this lawsuit, concealed fees sometimes damage the relationship between freelancers and their clients.
When clients feel deceived by unexpected charges, tension can spill over into their interaction with the freelancer.
Johnson argues that Freelancers on Fiverr don't control service fees, yet they may face unhappy clients who feel overcharged.
This dynamic often leads to:
- Negative reviews that hurt freelancers' reputations
- Disputes over project scope when clients feel they overpaid
- Reduced repeat business from dissatisfied customers
- Pressure on freelancers to lower their base prices to compensate
The lawsuit argues these hidden fees create an unfair marketplace where neither freelancers nor consumers can make truly informed decisions about pricing and value.
Who Can Join This Class Action Lawsuit
Johnson seeks to include all California residents who purchased freelancing services on Fiverr on or after July 1, 2024, coinciding with when California's Honest Pricing Law went into effect.
Important points about participation:
- You don't need to take action yet - the lawsuit is active but hasn't settled.
- The court will include eligible consumers automatically if it certifies the class action.
- After the class is certified, eligible class members will have several options, likely including accepting a class settlement, opting out, or objecting to the settlement.
- Strauss Borrelli PLLC and Cohen Malad LLP are the law firms handling the case.
Since this is an active lawsuit, there's no claim form or deadline for filing. The legal process must unfold before any compensation becomes available.
What Fiverr Users Should Do Right Now
Recent Fiverr users should take steps to protect their potential legal claims.
Check your purchase history
Log in to your Fiverr account and review any transactions made on or after July 1, 2024. Look for service fees added at checkout that the platform did not include in the advertised price.
Document everything
Save receipts, screenshots, and any documentation showing:
- Advertised price you saw
- Service fee added at checkout
- Total price you paid
- Date of your transaction
Stay informed
Since this is an active lawsuit, developments will unfold over time. Keep an eye on legal news and updates about the case's progress.
Explore your alternatives
As the legal proceedings continue, now might be a good time to evaluate Fiverr's fee structure against other freelance platforms. Many competitors offer more transparent, upfront pricing.
Timeline and Next Steps in the Legal Process
Here's what typically happens in a class action lawsuit like this:
Current Status: Johnson filed his complaint in April 2025, and now Fiverr must respond to the allegations. The company will likely file motions to dismiss or otherwise challenge the lawsuit.
Class Certification: Johnson will seek class certification if the case survives initial challenges. This process determines whether the case can proceed as a class action representing eligible California residents.
Discovery Phase: Both sides will exchange evidence and take depositions. This phase often reveals important information about business practices and the extent of the alleged violations.
Potential Outcomes
Johnson’s case could end in several ways:
- Settlement negotiations resulting in compensation for class members.
- A trial where a judge or jury decides the outcome.
- Dismissal if the court finds the claims lack merit.
Timeline Expectations: Class action lawsuits typically take 1-3 years to resolve. Complex cases involving digital marketplaces and consumer protection laws may take longer.
If the Lawsuit Succeeds, eligible class members could receive:
- Restitution of service fees paid
- Injunctive relief requiring Fiverr to change its pricing practices
- Potentially additional damages under California law
The Fiverr class action lawsuit shines a spotlight on practices that affect millions of users in the growing gig economy. Whether you're a California resident who purchased freelancing services after July 1, 2024, or simply someone who uses online platforms, this case matters.
The outcome could reshape how digital marketplaces operate, potentially ending the era of surprise fees at checkout.
For now, stay informed about your rights, document your transactions, and remember that transparency in pricing isn't just good business in California, it's the law.
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