Proposed Depop “Junk Fee” Class Action Dismissed, Similar California Case Remains
A proposed federal class action accusing Depop of hiding its mandatory Marketplace Fee until checkout has been voluntarily dismissed, leaving the underlying claims unresolved and a similar California state case still pending.
Plaintiff Linsey Dinh filed a notice Friday dismissing the case without prejudice, meaning the lawsuit can potentially be brought again and there was no ruling on whether Depop’s pricing practices violated California law.
Dinh sued Depop in February after buying a $17 item in January 2025 and being charged an additional $1.55 Marketplace Fee at checkout.
The complaint accused the fashion resale marketplace of “drip pricing” by advertising item prices without including the mandatory fee, allegedly violating California’s Honest Pricing Law and other consumer protection statutes.
The proposed class action sought damages, restitution and an injunction on behalf of California buyers and a broader nationwide class of customers who paid the fee.
As Value Added Resource previously reported, the complaint also pointed to changes Depop appeared to be testing on some item pages, including an information icon stating the displayed price included the Marketplace Fee.
Liz Morton
Depop later notified the federal court that another case involving the same allegations had already been filed in California state court.
Nicole Yuen filed that lawsuit in Santa Clara County Superior Court in July 2025, several months before Dinh’s federal complaint. Depop said the two cases covered the same subject matter and that Dinh fell within the class proposed in Yuen.
Depop also said the parties in the Yuen case had completed mediation and that it expected the matter to be resolved “within months.” That overlap may help explain Dinh’s dismissal, though her filing does not say the cases were coordinated, consolidated or settled.
The legal update comes as Depop remains set to be acquired by eBay in a roughly $1.2 billion cash deal that is still awaiting UK regulatory clearance. Australia has already approved the acquisition, while the UK Competition and Markets Authority faces an August 6 deadline to clear the deal or refer it for a deeper review.
Depop is also expanding its buyer-fee model, recently announcing plans to eliminate seller commissions in Australia while adding a Marketplace Fee for buyers beginning July 22.
Liz Morton
The dismissal ends this federal case without deciding whether Depop’s fee disclosures were lawful, leaving the remaining state court action now the main venue for claims over the Marketplace Fee.
The federal case was Dinh v. Depop Inc., Case No. 3:26-cv-01173-VC, in the U.S. District Court for the Northern District of California. The state case is Yuen v. Depop Inc., Case No. 25CV469747, in Santa Clara County Superior Court.
