Press Release  AG Campbell Releases "Junk Fee" Regulations To Help Consumers Avoid Unnecessary Costs

BOSTON — During National Consumer Protection Week, Attorney General Andrea Joy Campbell has announced the adoption of nation-leading consumer protection regulations to prohibit “junk fees” and help consumers understand the total cost of a product or service upfront, avoid unnecessary charges, and easily cancel unwanted costs related to trial and subscription offers.

“We’ve all been there: booked a hotel room, purchased concert tickets, or paid for a service that was advertised at one price and then charged for one exponentially higher – all because of hidden junk fees,” said AG Campbell. “These regulations seek to keep more money in residents’ pockets by combatting these unnecessary fees and ensuring consumers understand exactly how much and what they are paying for.”

The Attorney General’s Office (AGO)’s regulations make clear that hidden “junk fees” and related billing practices violate the Massachusetts Consumer Protection Act. As such, the regulations impose various rules on businesses to prohibit unfair and deceptive practices related to “junk fees,” including during the marketing and sale of products and services, and in connection to trial offers and recurring charges.

“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, only disclose them at the end of a transaction, or after consumers have 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 transparency for consumers and help residents more easily avoid and cancel costs that may be optional, waivable, or unwanted. Additionally, by enabling consumers to more easily compare prices while shopping, the regulations level the playing field for businesses.

Combatting Hidden, Surprise, or Unnecessary Charges During Marketing and Sales

Among other rules, the AGO’s regulations require businesses to clearly disclose: 

• The total price of a product, including any mandatory charges or fees, whenever pricing information is presented to a consumer and prior to requiring a consumer to provide their personal information.  
• The nature, purpose, and amount of any charges that may be imposed on a transaction.
• Whether any charges are optional or waivable, along with readily available instructions on how to avoid any optional or waivable charges. 

Whenever pricing information is presented to a consumer, businesses must also display the total price of a product more prominently than any other pricing information. 

Trial Offers and Automatic Renewals

When presenting a trial offer, the AGO’s regulations require businesses to clearly disclose:

• Any charges a consumer may incur as a result of accepting a trial offer.
• Any products for which charges may be incurred as a result of accepting a trial offer. 
• Instructions for consumers to reject or cancel a trial offer before being charged. 
• The calendar date by which a consumer must reject or cancel a trial offer to avoid being charged. 
• The calendar date on which a consumer will be charged if the consumer fails to reject or cancel a trial offer. 

Recurring Charges and Subscriptions

Among other rules, prior to the purchase of a product involving a recurring charge or subscription, the AGO’s regulations require businesses to clearly disclose: 

• What consumers will be charged for and if any charges will increase after a certain period, including trial periods. 
• If charges will occur on a regular basis unless cancelled by a consumer.
• Instructions on how to cancel a recurring charge or subscription. 

The AGO’s regulations also require businesses to implement simple processes for consumers to cancel subscriptions and other recurring charges, including ensuring that consumers are able to cancel subscriptions just as easily as they are able to enroll in them. For example, if a consumer enrolls in a subscription through a website, they must be able to cancel the subscription through the same website. 

Additionally, the regulations require businesses to provide advance written notices regarding their subscriptions, including details of when a subscription will renew, how much the consumer will be charged and when, and how the consumer may cancel. 

The AGO’s regulations impose various other rules for businesses in order to bolster price transparency and help consumers avoid unnecessary costs. The entirety of the regulations, promulgated as 940 CMR 38.00, may be viewed here.

The regulations are enforceable by the AGO beginning September 2, 2025 for businesses operating in Massachusetts. In order to assist businesses in complying with the new regulations, the AGO has released guidance for businesses, available here.  

The promulgation of these regulations was handled by the AGO’s Consumer Protection Division and Policy and Government Division. The regulations were proposed and promulgated through use of the AGO’s rule-making power under the Massachusetts Consumer Protection Act, enabling the AGO to close existing gaps within the state’s consumer protection laws and combat unfair and deceptive business practices related to “junk fees,” trial offers, and recurring charges across industries.

Consumers who believe they have been subject to an unfair or deceptive business practice, including in relation to “junk fees,” may file a consumer complaint or call the Attorney General’s Consumer Hotline at 617-727-8400. 

Statements of Support: 

Elizabeth Warren, U.S. Senator from Massachusetts 

“American families need relief from rising prices and surprise junk fees. But the Trump administration is more focused on gutting consumer protections and firing the workers that protect Americans from scammers than on bringing costs down. I am grateful for AG Campbell’s leadership to stop predatory corporate practices and require price transparency.” 

Ariel Nelson, Senior Attorney at National Consumer Law Center 

“Unexpected and confusing junk fees imposed across the economy cost families tens of billions of dollars each year and make it hard for honest businesses to compete. We applaud Attorney General Campbell for taking this critical step to protect consumers from predatory junk fees. These regulations will make a huge difference for consumers, especially renters struggling to find safe and decent housing that fits their budget.” 

Jen Benson, AARP Massachusetts State Director

“AARP applauds Attorney General Andrea Joy Campbell for strengthening the rules on unfair and deceptive fees. Massachusetts already has some of the strongest consumer protection laws in the country, this adds more protection to the Commonwealth’s consumers. 85% of Americans have experienced a hidden or unexpected fee for a service in the previous two years but they hit those on fixed and modest incomes, like most older adults, even harder. These fees can really add up without providing any real benefit. That's why it's so important for consumers to have all the information upfront to make informed decisions about prices and key terms of service.” 

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