Shipping protection is not a junk fee when it is genuinely optional and clearly disclosed. Hidden-fee rules go after mandatory charges that appear late or are left out of the advertised price. A protection fee that customers can see, understand and remove before they pay is an optional add-on. A few states add extra rules for optional fees, so the details of how you present it matter.
This is a summary of public guidance as of October 2026, not legal advice. For the basics of protection itself, see our shipping protection guide.
What counts as a junk fee?
Regulators mostly mean drip pricing: advertising one price and adding mandatory fees later in checkout. The common thread across the rules below is that a fee the customer must pay belongs in the price they see first.
Two kinds of charges are usually treated separately:
- Shipping costs for physical goods, which several of these laws allow outside the advertised price.
- Optional add-ons that the customer can decline, such as shipping protection.
Which rules matter for a Shopify store?
| Rule | Who it covers | What it means for protection |
|---|---|---|
| FTC Rule on Unfair or Deceptive Fees (since May 12, 2025) | Live-event tickets and short-term lodging | Does not cover product sales directly; general deception rules still apply |
| California SB 478 (since July 1, 2024) | Most businesses selling to Californians | Mandatory fees must be in the advertised price; optional fees do not have to be |
| Minnesota (since January 1, 2025) | Goods and services sold to Minnesotans | Mandatory fees in the advertised price; reasonable shipping costs may be separate |
| Massachusetts 940 CMR 38 (since September 2, 2025) | Most products sold to Massachusetts consumers | Optional fees must be disclosed as optional, with instructions to avoid them |
The pattern is clear: keep protection truly optional, and make that obvious.
How do you keep shipping protection transparent?
Use this checklist on your cart, checkout and thank-you page:
- Show the price next to the toggle, not in small print or a tooltip.
- Say what it covers in one line: loss, damage and theft in delivery.
- Label it optional, for example “Optional: protect my order”.
- Make it one click to add or remove, and keep it removable until payment.
- Link your protection policy so customers can see the rules before paying.
- Show it as its own line item on the order and receipt.
- Never call it shipping, tax or a required fee.
Opt-in or auto-add?
Opt-in, where the customer ticks the box, is the safest default. Auto-add can raise the share of customers who keep protection, but it raises the bar for disclosure. If you auto-add, apply every item on the checklist, and pay particular attention to Massachusetts’ requirement to label optional fees and explain how to avoid them. Our guide to opt-in vs auto-add shipping protection compares the two in more detail.
What should your protection page say?
Your policy page and widget should agree. State what is covered, how to file a claim, how long customers have, and how you resolve claims. If you run your own program, describe it as protection, not insurance. The free claim policy generator builds a policy with these sections.
With Sam Shipping Protection, the widget shows the price and lets customers switch protection off before paying, and the protection item appears as its own line on the order.
Frequently asked questions
Is shipping protection a junk fee?
Not when it is genuinely optional and clearly disclosed. Hidden-fee rules focus on mandatory fees left out of the advertised price. Protection that customers can see, understand and remove before paying is an optional add-on, but some states set extra disclosure rules for optional fees.
Does the FTC junk fees rule apply to Shopify stores?
The FTC's Rule on Unfair or Deceptive Fees, in effect since May 12, 2025, covers live-event tickets and short-term lodging. General rules against deceptive practices still apply to every business.
Can I auto-add shipping protection to the cart?
Some stores do, but it raises the bar for disclosure. Show the fee and what it covers before payment, label it optional, and make it one click to remove. In Massachusetts, optional fees must be disclosed as optional with instructions on how to avoid them.
Is this legal advice?
No. This is a summary of public guidance as of October 2026. Rules differ by state and country and change often, so check with a lawyer for your situation.
Sources
Part of our guide: Shipping protection →