What Is an Adult Signature Fee?

September 27, 2024
by Anthony Robinson

If you’ve ever ordered age-restricted goods online, you may have come across an adult signature fee. But what exactly is an adult signature fee, and how does it work? In this article, we’ll explore the purpose of adult signature fees, the legal requirements for collecting them, and more.

Understanding the Purpose of an Adult Signature Fee

An adult signature fee is a charge that may be added to a purchase of age-restricted goods to cover the cost of verifying that the recipient of the goods is of legal age. This fee is typically associated with the purchase of tobacco, alcohol, and firearms, although it may also be applied to other age-restricted goods, such as knives, fireworks, or adult content.

The purpose of the adult signature fee is to ensure that age-restricted goods are not sold to minors. The fee covers the cost of verifying the age of the recipient through various methods, such as requiring a signature upon delivery or scanning a government-issued ID. Retailers may also use third-party age verification services to ensure compliance with age restrictions. The fee is typically a small percentage of the total purchase price and is intended to offset the cost of compliance with age-restriction laws and regulations.

How an Adult Signature Fee Works

An adult signature fee is typically collected by the retailer or shipping carrier at the time of purchase or delivery. The cost of the fee may vary depending on the retailer, the carrier, and the type and quantity of age-restricted goods being purchased. The fee covers the cost of verifying the recipient’s age using identification and signature verification tools.

It is important to note that not all age-restricted products require an adult signature fee. For example, some states may require a fee for the purchase of tobacco products, while others may not. Additionally, some retailers may choose to waive the fee for certain customers, such as those with a verified age on file or those who have a membership with the retailer. It is always best to check with the retailer or carrier to understand their specific policies regarding adult signature fees.

The Legal Requirements for Collecting an Adult Signature Fee

Collecting an adult signature fee is not required by law, but it may be necessary for retailers and carriers to comply with state and federal laws related to the sale and delivery of age-restricted goods. These laws may vary by state and may require that age-restricted goods be delivered only to individuals who are of legal age to purchase those goods.

For example, in some states, it is illegal to sell tobacco products to anyone under the age of 21. In these states, retailers and carriers may be required to verify the age of the recipient before delivering the product. This can be done by collecting an adult signature fee or by requiring the recipient to show a valid ID upon delivery.

Why Some Retailers Charge an Adult Signature Fee

Retailers may charge an adult signature fee for different reasons. They may do so to cover the additional cost of age verification and signature confirmation, reduce the risk of fraud or underage purchases, or comply with state or federal laws and regulations related to the selling and delivery of age-restricted products.

Additionally, some retailers may choose to charge an adult signature fee as a way to encourage responsible consumption of age-restricted products. By requiring an adult signature upon delivery, retailers can ensure that the product is being received by someone who is legally allowed to purchase and consume it. This can help prevent underage drinking or smoking, and promote safe and responsible consumption among adults.

Who Pays the Adult Signature Fee: The Retailer or the Customer?

The adult signature fee is typically paid by the customer, although some retailers may choose to absorb the cost of the fee as a marketing or customer service expense. The fee may also be waived or reduced for customers who have a membership or loyalty program with the retailer.

It is important to note that the adult signature fee is required by law for certain products, such as tobacco and alcohol, to ensure that they are not sold to minors. Retailers who fail to comply with this regulation may face legal consequences and fines. Therefore, it is in the best interest of both the retailer and the customer to ensure that the fee is paid and the signature is obtained from a legal adult.

How Much Is a Typical Adult Signature Fee?

The cost of an adult signature fee may vary depending on the retailer, the carrier, and the type and quantity of age-restricted goods being purchased. The fee may range from a few dollars to several dollars per package, although some retailers may choose to waive the fee or offer it at a reduced cost for certain customers.

It is important to note that some states have laws that regulate the cost of adult signature fees. For example, in California, retailers are only allowed to charge up to $6 for an adult signature fee per shipment. In other states, there may be no regulation on the cost of the fee, which means that retailers and carriers can charge whatever they deem appropriate.

Additionally, some carriers may offer a subscription service for adult signature fees. This means that customers can pay a monthly or yearly fee to have all of their age-restricted packages delivered with an adult signature, without having to pay the fee for each individual package. This can be a convenient option for customers who frequently purchase age-restricted items and want to avoid the hassle of paying the fee each time.

How to Avoid Paying an Adult Signature Fee

The best way to avoid paying an adult signature fee is to purchase age-restricted goods in-person, at a brick-and-mortar store that specializes in the sale of these types of products. Alternately, customers may be able to avoid the fee by scheduling deliveries for a time when they are available to sign for the package in-person, rather than having it left unattended at their doorstep.

Another way to avoid paying an adult signature fee is to have the package delivered to a nearby post office or shipping center for pickup. This option allows customers to sign for the package in-person without having to pay an additional fee.

It's important to note that some carriers, such as UPS and FedEx, may require an adult signature for certain packages regardless of the recipient's age. In these cases, there may be no way to avoid the fee. It's always a good idea to check with the carrier or retailer before making a purchase to determine if an adult signature will be required and if there are any options for avoiding the fee.

Are There Any Exemptions to an Adult Signature Fee?

Exemptions to adult signature fees may vary by state and retailer, and may be granted for certain types of age-restricted products or under certain conditions. For example, some states may exempt certain medical marijuana patients from paying an adult signature fee for delivery of their medication.

In addition, some retailers may waive the adult signature fee for customers who have established a history of responsible purchases and age verification. This may be determined by the retailer's own policies and procedures.

It is important to note that even if an exemption or waiver is granted, the delivery driver or courier may still require a signature from someone who is at least 21 years old. This is to ensure compliance with state and federal laws regarding the sale and delivery of age-restricted products.

The Pros and Cons of Implementing an Adult Signature Fee for Retailers

There are pros and cons to implementing an adult signature fee for retailers. On the one hand, this fee can help reduce the risk of fraud and underage sales, and ensure compliance with state and federal regulations. On the other hand, the fee may discourage customers from purchasing age-restricted goods from a particular retailer if they feel the fee is too high or burdensome.

Another potential con of implementing an adult signature fee is that it may create additional administrative work for retailers. They may need to track and report on the fees collected, and ensure that they are being used appropriately. Additionally, retailers may need to train their staff on how to properly implement the fee and handle any customer complaints or questions about it. However, if implemented correctly, the fee can be a useful tool for retailers to ensure compliance and protect their business from potential legal and financial consequences.

The Impact of COVID-19 on Adult Signature Fees in E-commerce

The COVID-19 pandemic has brought new challenges to the delivery of age-restricted goods, as many people are now working and studying from home, and may be unavailable to sign for deliveries during the day. Some retailers and carriers have waived or reduced the adult signature fee during the pandemic as a way to facilitate contactless delivery and reduce exposure to the virus.

In conclusion, understanding adult signature fees is important for anyone who purchases age-restricted goods online. By knowing how these fees work, why they are charged, and what options are available to avoid or reduce them, consumers can make informed decisions about where to purchase their age-restricted products.

However, it is important to note that not all retailers and carriers have waived or reduced the adult signature fee during the pandemic. Some have even increased the fee due to the additional precautions and measures needed to ensure safe delivery. Consumers should be aware of these variations in fees and policies when making their purchasing decisions.

Furthermore, the impact of COVID-19 on adult signature fees may have long-term effects on e-commerce. As more consumers become accustomed to contactless delivery and reduced fees, retailers and carriers may need to reevaluate their policies and pricing structures to remain competitive in the market.

About the Author

Anthony Robinson is the CEO of ShipScience, a pioneering company dedicated to helping e-commerce leaders optimize their shipping decisions, reduce costs, and automate tedious processes. With a Bachelor of Science in Economics from Stanford University, Anthony brings over a decade of expertise in logistics, business development, and operational efficiency to the table.

Since founding ShipScience in 2018, Anthony has empowered numerous e-commerce businesses to navigate the complexities of parcel shipping through data-driven insights and innovative solutions. His leadership extends beyond ShipScience, having established Refund Geeks and served on advisory boards at Ciye and RESA Power, showcasing his commitment to driving corporate growth and enhancing operational strategies.

Anthony is passionate about leveraging technology to streamline supply chains and improve customer experiences in the last mile. When he’s not strategizing shipping solutions, he enjoys connecting with industry leaders and staying ahead of the latest trends in e-commerce and logistics.

Connect with Anthony on LinkedIn to learn more about his work and insights on optimizing shipping for e-commerce businesses.

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