Route quietly adding shipping fees
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Route's shipping and package protection services are added by default when used through e-commerce websites. These fees may appear to be mandatory when displayed during checkout.
Background
[edit | edit source]Route is an American company based in Utah and was founded in 2018 by Mike Moreno.[1] It offers a shipping protection service to consumers through e-commerce websites,[2] with their primary service acting as a middle-man between the consumer and the business.[citation needed (21 Oct 2026)] All fees for the service are paid by the customer during checkout.[3] Rather than making a complaint to the merchant, the consumer would settle compensation through Route's claims process. Shipping protection services are frequently added to the shopping cart by default, requiring the buyer to opt out manually.[4] Shopify prohibited all "on by default" optional charges that were added without the buyers explicit consent.[5] In response, Route changed their checkout process in Shopify by combining shipping and their package protection service into one checkmark that is selected by default.[6] There is an option to select shipping without their protection service, but it must be manually selected. These restrictions, however, are not required for most other e-commerce websites.
"Junk fees"
[edit | edit source]When at checkout on an e-commerce platform that partners with Route, a widget built into the commerce app enables shipping protection by default.[6] Most e-commerce websites do not have a clause prohibiting optional charges being selected by default, which Route takes note of. On Route's merchant support FAQ, they encourage non-Shopify merchants to keep settings enabled so their services are checked on by default for shoppers.[7]
Lawsuit
[edit | edit source]A class action lawsuit was filed 3 June 2026, by New York residents Anthony Mertson and Michael Schirano, in the Northern District of New York.[8]
Claims
[edit | edit source]The suit alleges that Route intentionally hid the option to disable their shipping protection service resulting in "junk fees" added to the total cost. The suit also alleges that the extra fees in checkout are designed to appear mandatory, causing customers to pay for a service they might not have wanted to.[9]
Rebuttal
[edit | edit source]On 7 October 2026, Route moved to have the case dismissed, arguing that their terms and conditions disclose that their shipping protection service is optional.[10]
Among other claims, the following was also argued:[11]
- Failure to state a claim "under Rule 12(b)(6) because Route's alleged conduct is not consumer-oriented and because Plaintiffs never saw the fee they allege was a misleading misrepresentation."
- Lacking Article III standing "because they cannot trace any cognizable injury to conduct by Route and because they cannot represent a nationwide class of purchasers from retailers they never visited."
Outcome
[edit | edit source]This section is incomplete. This notice can be deleted once all the placeholder text has been replaced.
Consumer response
[edit | edit source]Consumers argue that the fees are not adequately disclosed, and often appear to be mandatory.[12]
References
[edit | edit source]- ↑ "Route - Company Profile". Tracsxn. 2026. Archived from the original on 2026-10-21. Retrieved 2026-10-21.
- ↑ "AI powered package protection that turns issues into loyalty". Route. Archived from the original on 2026-09-11. Retrieved 2026-10-21.
- ↑ "Route Package & Shipping Protection: Is It Worth It?". Secursus. Archived from the original on 2026-10-21. Retrieved 2026-10-13.
- ↑ Rownd, Lauren (2025-07-17). "Shipping Protection or Deceptive Practice? Shipping Fee Class Actions on the Rise". RapidFunds®. Archived from the original on 2025-08-04. Retrieved 2026-10-21.
- ↑ "App Store requirements". Shopify. Archived from the original on 2026-10-01. Retrieved 2026-10-21.
- ↑ 6.0 6.1 Robertson, Bryan. "Route Shipping Protection". Bryant Robertson. Archived from the original on 2026-10-21. Retrieved 2026-10-21.
- ↑ "Can the box switch so it's automatically unchecked?". Route. Archived from the original on 2026-10-11. Retrieved 2026-10-21.
- ↑ Bagdonas, Tracy (2026-06-24). "Class Action Lawsuit Claims Route App Enables Unlawful Junk Fees". ClassAction.org. Archived from the original on 2026-10-11. Retrieved 2026-10-21.
- ↑ "Complaint — Document #1". Court Listener. 2026-06-03. Archived from the original on 2026-10-22. Retrieved 2026-10-21.
- ↑ "Route Terms & Conditions: Platform and Insurance Use". Route. 2026-01-09. Archived from the original on 2026-08-06. Retrieved 2026-10-14.
- ↑ Melcher, Molly R. (2026-10-07). "Memorandum of Law In Support of Route Motion to Dismiss Plaintiff's Complaint — Document #13, Attachment #1". Court Listener. p. 3. Archived from the original on 2026-10-22. Retrieved 2026-10-21.
- ↑ Moise, Imani (2024-12-25). "Porch Pirates Are Now Raising the Price You Pay at Checkout". The Wall Street Journal. Retrieved 2026-10-14.
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