Press Statement  AG Campbell Issues Statement On Effective Date Of New "Junk Fee" Consumer Protection Regulations

BOSTON — Today, on the effective date of new nation-leading consumer protection regulations prohibiting “junk fees,” Attorney General Andrea Joy Campbell issued the following statement.

“Today, as we build upon the Commonwealth’s nation-leading legacy of consumer protection, we make clear that “junk fees” and deceptive pricing are not lawful. 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,” said AG Campbell. “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.”

The economy-wide regulations, promulgated by the Attorney General’s Office (AGO) earlier this year, make clear that hidden or surprise “junk fees” and related billing practices violate the Massachusetts Consumer Protection Act. The regulations impose various rules for businesses to help consumers understand the total cost of a product or service upfront, avoid unnecessary, optional, or waivable charges, and easily cancel unwanted trial offers and subscriptions.

“Junk fees” are hidden, surprise, or unnecessary costs that increase the total price of a product beyond the advertised price. Businesses often do not disclose such fees upfront or only share them at the end of a transaction after consumers have already provided their personal billing information. Similarly, some businesses have engaged in practices related to trial offers, subscriptions, and automatic and recurring charges to conceal the total cost and nature of a product or service, while making it difficult for consumers to cancel or opt-out of such features.

By prohibiting such practices, the AGO’s regulations aim to increase price and billing transparency for consumers and help them more easily avoid costs that may be unnecessary or unwanted. Additionally, by enabling consumers to more easily compare prices while shopping through increased price transparency, the regulations help level the playing field for businesses.

The regulations apply broadly across industries and businesses that operate, advertise, or sell in Massachusetts, including online and out-of-state businesses. The AGO has released various resources to help businesses comply with the new regulations, including a guidance, webinar, and “Tips for Restaurants,” which may be viewed online at mass.gov/ago/junkfees. 

Consumers who believe they have experienced an unfair or deceptive practice related to “junk fees” may file a consumer complaint with the AGO by visiting mass.gov/ago/consumercomplaint. 

The “junk fee” regulations, promulgated as 940 CMR 38.00, may be viewed in their entirety here.