Specialized settles case over ‘junk fees’

May 26, 2026

Specialized Bicycle has reached a confidential settlement in a case filed in California over so-called “junk fees” charged to online customers. Giant Bicycle, which is being sued on a similar claims by the same attorney who filed the Specialized case, has not reached an agreement.

Both suits pointed to a California law banning “junk fees” or “drip fees” that took effect in July, 2024. According to a FAQ published by the state’s attorney general, businesses must include any fees in their advertised prices, although taxes and shipping charges can be added in the shopping cart. Restaurants are exempt.

In the Specialized case, plaintiff Christopher Rossow, a Virginia man, said the Specialized e-commerce website did not show him all the fees he would be charged until after he submitted his credit card and shipping information.  Bicyle Retailer