Massachusetts tosses 'junk fees' in the bin, will prohibit hidden charges
Published in News & Features
Bay State residents should now be able to make purchases without worrying about differences in the price they were shown and the cost of the bill.
According to Attorney General Andrea Joy Campbell, Sept. 2 was the day that the state’s newest and “nation-leading” consumer protection rules went into effect, prohibiting the use of “junk fees” by retailers.
“From concert tickets and hotel bookings, to subscription services and apartment rentals – surprise and unnecessary charges have quietly cost consumers around the country tens of billions of dollars each year,” Campbell said in a statement.
According to Campbell, junk fees — charges tacked onto a bill at the end of a transaction, usually after a purchaser has input their payment information — are expressly forbidden by the state’s Consumer Protection Act.
Going forward, businesses must clearly display the total price of a product for sale — including any mandatory fees or charges — any time pricing information is communicated to a consumer and before they provide any personal information.
Businesses are also required to explain the “nature, purpose, and amount” of any charges tacked onto a transaction and inform a consumer if they can waive any charges and how to do so.
The new rules, according to Campbell’s office, apply across Bay State industries and those that “operate, advertise, or sell in Massachusetts,” including out-of-state and online sellers. To assist businesses with compliance, the AG has published guidance, a webinar, and “Tips for Restaurants” materials that can be found at mass.gov/ago/junkfees.
Consumers who believe they have been subjected to unfair business practices such as junk fees can lodge a complaint at mass.gov/ago/consumercomplaint.
“Amidst rising costs, these historic regulations not only provide individuals upfront transparency about the true cost of a good or service, but level the playing field for businesses by promoting trust and fair competition. I urge consumers and businesses to view my office’s resources to ensure compliance with the new rules, which my office stands ready to enforce starting today,” Campbell said.
In December of 2024, the Federal Trade Administration under President Joe Biden attempted to ban the use of junk fees nationally. Those efforts have since been reversed.
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