ThredUp Handling Fee Class Action, What Buyers Need to Know
A proposed class action filed February 26, 2026, alleges ThredUp charges a mandatory handling fee that only appears at checkout — not in item prices — violating California’s Honest Pricing Law. The case is Mobley v. ThredUp Inc., filed in the U.S. District Court for the Northern District of California. No settlement exists. No claim form is available.
KEY DATES
- Lawsuit filed: February 26, 2026
- Case number: 3:25-cv-10419-TLT, N.D. Cal.
- Claim deadline: None — no settlement or claims period exists
- Settlement website: None
- Case status: Early-stage litigation — no motions ruled on, no class certified
What Is the ThredUp Handling Fee Lawsuit About?
Plaintiff Sonja Mobley filed a class action lawsuit against ThredUp Inc., claiming the company unlawfully charges a mandatory handling fee to consumers who make purchases on its website. The fee only appears during checkout, not in item prices — which, according to the complaint, is too late for shoppers to accurately compare ThredUp’s total cost against competitors.
Mobley claims that ThredUp charges a combined “shipping and handling” fee with each transaction, but only the shipping portion is exempt from California’s Honest Pricing Law. The handling fee, she argues, should be disclosed upfront with the price of every item.
ThredUp is a popular online resale marketplace where shoppers buy secondhand clothing. The lawsuit targets buyers who paid the handling fee — not sellers. It does not allege issues with how ThredUp pays or treats its sellers.
Who Is Allegedly Affected?
Mobley seeks to represent a nationwide class and a California subclass of consumers who, within the applicable statute of limitations, purchased one or more items from ThredUp’s website and paid a mandatory handling fee that was not advertised with the initial item price.
In plain terms: if you have bought clothes on ThredUp and noticed a handling charge appear in your cart at checkout — a charge not shown on the item’s listing page — you may fall within the proposed class. The lawsuit does not require that you were injured beyond paying the fee itself.
No class has been certified yet. Until certification occurs, there is no formal class membership, and no action is required from potential class members.
Legal Claims
Violation of California’s Honest Pricing Law means ThredUp allegedly broke a state rule that requires sellers to display the total price — including mandatory fees — from the moment a product is advertised. Consumers are entitled to see the full cost before they start shopping, not after they build a cart.
California Consumers Legal Remedies Act (CLRA) means the complaint alleges the hidden fee is an “unfair or deceptive act” in a consumer transaction, a category the CLRA specifically prohibits.
California Unfair Competition Law (UCL) and False Advertising Law (FAL) means plaintiffs argue the fee’s omission from item prices constitutes false or misleading advertising and an unlawful business practice.
Unjust enrichment means Mobley alleges ThredUp collected money it was not legally entitled to keep, because consumers did not knowingly agree to the fee structure before beginning their shopping.
Case Status: No Settlement, No Claims, No Deadline
The ThredUp handling fee lawsuit was filed February 26, 2026 — just days ago. This case is in the earliest possible stage of litigation.
No settlement has been proposed. No settlement administrator has been named. No official settlement website exists. Any website claiming to accept ThredUp handling fee settlement claims as of February 28, 2026 is not a legitimate settlement resource.
What happens next in litigation like this: ThredUp will likely file a motion to dismiss or an answer to the complaint. The court will then address class certification — a formal process where the judge decides whether this case can proceed on behalf of a group of consumers. After class certification, the parties may engage in discovery, and eventually a trial or settlement may occur. This process typically takes one to four years.
What This Means for ThredUp Shoppers
This lawsuit reflects a broader trend in California consumer protection litigation targeting “junk fees” — mandatory charges disclosed only at checkout rather than at the point of item display. Similar lawsuits have been filed against other retailers, and California’s Honest Pricing Law is increasingly being invoked by plaintiffs’ attorneys.
If you are a ThredUp buyer who paid handling fees, you do not need to take any action right now. Document any relevant purchase records and receipts if you want to preserve evidence. If a settlement is reached in the future, potential class members will be notified — typically by email or mail — with instructions on how to file a claim.
Do not pay anyone claiming to help you file a claim in this case. No legitimate claims process exists yet, and filing claims through unofficial third parties is never required in class action settlements.
Frequently Asked Questions
What is the ThredUp class action about?
The lawsuit alleges ThredUp charges a mandatory handling fee on every purchase but only discloses it at checkout, not on item listing pages. Plaintiff Sonja Mobley claims this violates California’s Honest Pricing Law and consumer protection statutes, and she seeks to represent a nationwide class of affected buyers.
Has there been a ThredUp settlement?
No. The lawsuit was filed February 26, 2026. No settlement has been reached, proposed, or preliminarily approved. No claim form or settlement administrator exists as of February 28, 2026.
Who qualifies as a class member? The proposed class includes consumers nationwide — and a California subclass — who purchased items on ThredUp and paid a mandatory handling fee not shown in item prices. No class has been certified yet, so formal membership does not yet exist.
Do I need to do anything right now?
No. There is no claim form, no deadline, and no action required. Preserve your ThredUp purchase receipts or account history if you want to document your transactions. You will receive notice if and when a settlement or court decision requires you to act.
How long will this case take?
Cases like this typically take one to four years to resolve — through either settlement or trial. Class certification alone can take a year or more. Monitor the official court docket, Case No. 3:25-cv-10419-TLT in the Northern District of California, for updates.
How much could consumers receive if there is a settlement?
This cannot be estimated. No settlement terms exist, and any figure would be speculation. In similar consumer protection cases involving undisclosed fees, individual recoveries have ranged from a few dollars to over $100, depending on the settlement fund size and number of valid claims.
Is this lawsuit about ThredUp sellers or buyers?
Buyers. The lawsuit was filed by a consumer who purchased items on ThredUp and was charged a handling fee at checkout. It does not allege issues with how ThredUp handles seller accounts, payouts, or consignment policies.
Where can I check for updates?
Monitor the federal court docket at pacer.uscourts.gov using Case No. 3:25-cv-10419-TLT. When a settlement is reached and approved, a settlement administrator will be appointed and an official settlement website will be announced. This article will also be updated as the case progresses.
Last Updated: February 28, 2026
This article is for informational purposes only and does not constitute legal or tax advice. Settlement terms, eligibility, and payment amounts are subject to court approval and may change. For official information, always refer to the settlement administrator or the official settlement website.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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