Mansfield v. StockX LLC

CourtDistrict Court, N.D. California
DecidedOctober 3, 2025
Docket3:25-cv-04250
StatusUnknown

This text of Mansfield v. StockX LLC (Mansfield v. StockX LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mansfield v. StockX LLC, (N.D. Cal. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

DANIEL MANSFIELD, Case No. 25-cv-04250-RFL

Plaintiff, ORDER DENYING MOTION TO v. DISMISS

STOCKX LLC, Re: Dkt. No. 25 Defendant.

Daniel Mansfield accuses StockX of having engaged in “bait and switch” tactics when he bought a pair of shoes on the StockX mobile app. Allegedly, StockX quoted him an artificially low price on the shoes up front and only later revealed the real price, which included a previously undisclosed “processing fee.” According to Mansfield, this practice violates California statutory prohibitions against bait and switch and a particular form of bait and switch known as “drip pricing.” He accordingly commenced this action to recover on behalf of himself and two putative classes of StockX’s California customers. (See Dkt. No. 23 (the “FAC”).) StockX now moves to dismiss, arguing that: (1) Mansfield’s allegations do not sufficiently demonstrate that he has Article III standing; and (2) he has not stated a valid claim. (See Dkt. No. 25 (the “Motion”).)1 For the reasons set forth below, the Motion is DENIED. I. BACKGROUND The Court accepts the truth of Mansfield’s allegations for purposes of resolving the Motion. See United Aeronautical Corp. v. U.S. Air Force, 80 F.4th 1017, 1021 n.1 (9th Cir. 2023) (facial challenge to subject matter jurisdiction); Boquist v. Courtney, 32 F.4th 764, 772

1 All citations to page numbers in filings on the docket refer to ECF page numbers. (9th Cir. 2022) (failure to state a claim). A. California Law Prohibits Bait and Switch and Drip Pricing Bait and switch is a deceptive advertising tactic in which “the merchant intends to sell [something] significantly different from that which drew the potential customer in. The practice involves luring prospective purchasers through the bait of a desirable item, and then talking the customer into or steering him over to a less desirable item.” See Wood v. Honey Baked Ham, Inc., No. B261248, 2016 WL 6599928, at *3 n.3 (Cal. Ct. App. 2d Dist. Div. 7 Nov. 8, 2016) (citations and quotation marks omitted). For example, “a retail store [may] advertise[] a washing machine at a low price intending to attract consumers who will be told that all the machines have been sold and will be urged to buy a more expensive substitute.” See Goldberg v. 401 N. Wabash Venture LLC, 755 F.3d 456, 460 (7th Cir. 2014). California banned bait and switch in consumer transactions when it passed the Consumers Legal Remedies Act (the “CLRA”) in 1970. See James S. Reed, Legislating for the Consumer: An Insider’s Analysis of the Consumers Legal Remedies Act, 2 Pac. L. J. 1, 11 (1971). In that vein, the CLRA declares unlawful “[a]dvertising goods or services with intent not to sell them as advertised.” See Cal. Civ. Code § 1770(a)(9). A common form of bait and switch is drip pricing. “Businesses engage in drip pricing by advertising products at artificially low headline price[s] and then disclosing additional charges later in the buying process.” Harvey v. World Mkt., LLC, No. 25-cv-01242-CRB, 2025 WL 1359066, at *1 (N.D. Cal. May 9, 2025) (citation and quotation marks omitted). “Consumers [subject to drip pricing] are often misled and kept from properly assessing the best prices, thereby hindering the market, especially online.” California Senate Rules Committee Analysis (Sept. 11, 2023) (S.B. 478). To address these concerns, California recently amended the CLRA to directly prohibit drip pricing. See 2023 Cal. Legis. Serv. Ch. 400 § 1(a) (S.B. 478). Accordingly, the CLRA now also bans “[a]dvertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than” taxes and shipping costs. See Cal. Civ. Code § 1770(a)(29)(A). B. StockX Allegedly Engages in Drip Pricing StockX sells a variety of consumer goods through its website and mobile app.” (See FAC 44 19-20.) Customers can purchase products directly or bid against each other. (See id. | 19.) Regardless of whether customers buy or bid, StockX presents them with a “Buy Now” price when they first view the item: Figure 32 8:25 lSCk a < 9 a

Salomon XT-6 Xpress Ship ovailable in select sizes. Get it Jul10

Price is Below Retail

we ° “co Market Data

( Return Policy @ Buyer Promise V

(See id. 55.) This Buy Now price, however, does not reflect all mandatory fees. Rather, after a customer clicks “Buy or Bid” (and after they select an item size if necessary for the specific product), StockX takes them to a new page where it discloses at the bottom of the screen that the sale will include a processing fee:

? Because Mansfield alleges that he used the mobile app, and this Order addresses Mansfield’s standing and the adequacy of his allegations, this description of the purchase process focuses on the app experience.

FISUIC OF 8:27 al SCs a x Cn 61 people are interested in this product Salomon XT-6 White Lunar Rock Stee:USM7 EDIT >

$196 Get It by July 15-24 Mako an Off Gent ices hharaaee acOSpts your price (© Dotvery Method

Shipping adcress added on the next step

Subtotal $222.61 A

(See id. § 56.) To view the amount of the fee, the customer must click on an arrow next to the subtotal, which opens a price breakdown: Figure 36 Figure 37 8:27 ont a x n= 61 peopie are interested in t's product Salomon XT-6 White Lunar Rock Ste:USM7 EDIT

Pricing Options @lnio = a= Good Bid Better Bid Buy Now Or Name Your Price $ 189 This is a competitive price that is more likely to match with a seller (Bid Expiration 30 days v Subtotal x item Price $189.00 Subtotal $215.20 Shipping 4914.95 Includes Processing Fee Final price calculated at checkou ame eam

(See id. § 58.) C. Mansfield Bought Shoes from StockX Under the Influence of Drip Pricing In April 2025, Mansfield bought a pair of shoes from StockX using the mobile app. (See

id. ¶ 86.) He initially placed a bid and later converted his bid into a direct buy. (See id. (citing paragraphs describing the bidding and conversion to direct buy processes on the mobile app).) The Buy Now price initially shown to Mansfield did not include StockX’s mandatory processing fee, and StockX did not couple that initial price with a disclosure that it would charge a processing fee. (See id. ¶¶ 86-87.) Presented with this artificially low price, Mansfield continued with the purchase process instead of shopping around elsewhere. (See id. ¶¶ 89, 102.) “As such, [he] had no way of knowing whether [he was] getting the best deal [his] money could buy.” (See id.) He ended up paying a $12.78 processing fee when he bought the shoes. (See id. ¶ 11.) II. LEGAL STANDARD StockX moves to dismiss under Federal Rules of Civil Procedure 12(b)(1) and (12)(b)(6). A. Rule 12(b)(1) Under Rule 12(b)(1), a court must dismiss a complaint if it lacks subject matter jurisdiction over the claims asserted. A defendant can challenge a court’s subject-matter jurisdiction by mounting either: (1) a facial attack based solely on the allegations of the complaint; or (2) a factual attack based on evidence outside the pleadings. See Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004). In evaluating a facial challenge, a court must “[a]ccept[] the plaintiff’s allegations as true and draw[] all reasonable inferences in the plaintiff’s favor.” See Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014) (citation omitted).

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