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E-Commerce & Online Retail

  • E-Commerce & Online Retail
Keegan & Donato Consulting, LLC

E-Commerce & Online Retail

Case Summary: Checkout Pricing and Consumer Perception

The plaintiffs in a national class action alleged that the defendant, an online retailer, advertised unusually low prices to draw shoppers. At checkout, they said, the retailer added a large, misleading fee that raised the final price well above what buyers expected.

The claims were false advertising and deceptive business practices.

MatterNational class action
ClaimsFalse advertising and deceptive business practices
Our roleRetained by the defendant, an online retailer
StudyConsumer perception study using a simulated online purchase

The Case

Study design

The defendant retained us to design and run a consumer perception study. It looked at how relevant consumers understood the checkout pricing, including the disputed fee, and whether it was likely to deceive or confuse them.

Relevant consumers were likely purchasers in the product category, including past customers. Several hundred completed a simulated online purchase. The simulation used a replica of the defendant’s actual checkout flow, including the order summary showing the disputed pricing and fee.

Findings

Abandonment

Nearly one-third of respondents said they would cancel or abandon the transaction after seeing the pricing. A large majority of them, in their own words, cited price or the disputed fee.

Accuracy

Among those who proceeded, a strong majority correctly identified the total they would be charged. No one mistook the subtotal, which excluded the fee, for the actual price.

Priorities

When asked to rank purchase attributes in this category, total price including fees and taxes ranked as the most important factor.

Overall, the findings weighed against consumer deception or confusion.

Why the design matters

The study replicated the real purchase experience and measured comprehension through both closed- and open-ended questions. That gives direct evidence that consumers accurately understood the disclosures, which undercuts the deception claim.

How much will a survey cost?

Every study is built around the needs of the case, so the cost depends on the design.

See Rates & Fees

Do you have a case like this?

Call us to talk through how survey evidence could fit your matter.

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