Dame’s chief executive, Alexandra Fine, said the company added a new checkout charge to be open with customers, as shoppers and regulators push for clearer pricing online. In a recent television interview, she explained the company’s approach, adding fuel to a wider debate over so-called add-on fees.
The comment arrives as businesses weigh how best to present surcharges tied to payment processing, shipping, and fulfillment. It also comes while regulators scrutinize “junk fees,” a broad label used for charges that appear late in the checkout flow. Fine spoke after the company faced questions about the fee and how it was displayed during purchase.
What the CEO Said
“The company added the charge the way they did because they wanted to be transparent with customers.” — Alexandra Fine, CEO of Dame, on FOX Business
Fine framed the move as a disclosure choice. The aim, she said, was to show the charge clearly rather than bury it. Her remarks suggest Dame sought to balance its costs with customer expectations for straight pricing.
Background: The Push for Clearer Pricing
Consumers have grown frustrated with fees that appear at the end of checkout. Hotels add resort fees, ticketing sites list service charges, and restaurants use credit card surcharges. Companies argue these fees reflect real costs, including card processing and compliance. Critics argue that late-stage add-ons make real prices hard to compare.
Federal regulators have signaled more action. The Federal Trade Commission has proposed rules that would require businesses to show total
prices upfront and explain any extra charges in plain terms. Several states and cities have rules governing credit card surcharges, including when they must be disclosed and how they are labeled.
Payment costs are a central factor. Card processing fees often range from about 1.5% to over 3%, depending on the card and merchant. Some
companies fold these costs into sticker prices. Others add them at checkout. Each approach has trade-offs for transparency, price competitiveness, and customer trust.
How Businesses Navigate Fees
Companies face a practical choice: include costs in the headline price or list them as separate line items. Itemizing can make the base price look lower but invites scrutiny if customers feel surprised. All-in pricing avoids surprises but may show a higher upfront price than rivals, even when the final cost is similar.
Industry analysts say the best practice is consistent, early disclosure. That means stating any extra charges on product pages and before the final click to buy. Clear labels also matter. Shoppers respond better to short descriptions that explain what a fee covers and whether it is avoidable.
- Show the total price early in the shopping process.
- Use plain labels that state what the fee covers.
- Keep line items consistent across products and platforms.
Consumer Reaction and Legal Context
Customer response tends to hinge on timing and clarity. A small fee that appears late can irritate buyers more than a larger fee that is shown upfront. Some retailers have learned this the hard way, seeing abandoned carts rise when final totals jump at checkout.
Legal
risk is also rising. Enforcement actions have focused on whether fees are disclosed in a clear and timely way. While many add-on fees are lawful, regulators stress that hidden or misleading charges can trigger penalties. Class actions have targeted companies that label standard
operating costs as special fees.
Implications for the Market
If regulators finalize stronger rules, more companies will likely shift to all-in pricing. That could make prices easier to compare, but it may also raise visible sticker prices. Businesses that depend on low advertised prices may need to adjust marketing, renegotiate payment costs, or offer cash discounts.
For consumer brands like Dame, trust is a key asset. Fine’s transparency message signals a bet that clear line items and plain language will help retention. The real test will be customer behavior over time: do shoppers accept the fee when it is explained, or do they go elsewhere?
What to Watch Next
Several signals will show whether this strategy works. Cart conversion rates will reveal if the fee deters buyers. Customer service logs will show whether complaints fall when labels are clearer. Competitors’ pricing choices will also shape expectations across the category.
Fine’s brief statement places the company on the side of more disclosure, not fewer fees. That stance could pay off if federal rules push the market to show full prices earlier. It could also force rivals to rethink how they present payment and fulfillment costs.
For now, the message is direct: show the charge, explain it, and let customers decide. The coming months will show if that approach builds trust—or if shoppers demand that fees disappear from the checkout screen altogether.
