Federal Judge Dismisses Peter Pan Bus ‘Junk Fee’ Lawsuit
Case highlights broader debate over transparency of travel fees in the transportation industry
A federal judge has dismissed a lawsuit alleging that Peter Pan Bus Lines unlawfully imposed so-called “junk fees” on its customers, ruling the claims failed to meet the legal threshold required to proceed.
The case, filed last year in U.S. District Court in Springfield by two men from Queens, New York, argued that the company misled consumers by displaying one price on its website, then adding additional charges during the checkout process. These fees—categorized as reservations, fuel, departure, transaction, or terminal costs—were labeled “junk fees” by the plaintiffs, who claimed they falsified the true cost of travel and violated consumer protection laws in both Massachusetts and New York.
Judge Mark G. Mastroianni rejected the claims this week, finding the complaint “too meager, vague, or conclusory” to establish relief. In his memorandum and order, he noted that the plaintiffs knowingly completed their purchase after the fees were disclosed, undercutting their breach of contract argument.
“The complaint clearly indicates Plaintiff went to Defendant’s website, saw an initial price, clicked through to check out, saw additional fees, and then proceeded to pay valuable consideration for the bus ticket after learning of the additional fees,” Mastroianni wrote. “In other words, the contract formed expressly included the fees whose inclusion Plaintiff now claims constituted a breach.”
The plaintiffs, Wesley Batson and Dinesh Mulani, argued the company was unjustly enriched and had violated an implied covenant of good faith and fair dealing. However, the judge pointed out that they were not coerced into purchasing tickets and could have chosen another bus carrier if dissatisfied with the price.
“There is no allegation Defendant forced him to pay the fees (or to use its bus service) through either explicit or implicit coercion: rather it is apparent from the complaint he paid the bus fees willingly,” the ruling stated.
The plaintiffs had also sought to amend their complaint after filing, but Mastroianni denied the request, noting that they had failed to show “good cause” and had already been given a sufficient opportunity to present their arguments. “The plaintiffs do not get leisurely repeated bites at the apple,” he wrote.
Attorneys for both sides declined to comment on the decision.
The dismissal closes the door, at least for now, on the challenge to Peter Pan’s fee practices, which mirror a broader national debate over transparency in ticket pricing across the travel industry.
