Massachusetts Attorney General Andrea Joy Campbell announced new protections against junk fees for consumers in the Bay State Monday morning.
The goal is to eliminate hidden or surprise fees for consumers.
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Campbell first proposed prohibiting so-called “junk fees” back in November 2023.
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Junk fees are hidden fees that companies allegedly use to hike prices on consumers above the advertised prices.
Those are things like convenience fees, service fees, or automatic renewal fees -- that are either not explained, or not disclosed until near the end of a purchase.
In the past year and a half since these regulations were proposed, there’s been some opposition.
The Mass Bankers Association raised concerns that the language was overly broad and would impact banking fees, which are already heavily regulated.
Campbell responded to critiques during a press conference Monday morning, explaining that the development of the regulations was informed by over 100 comments from businesses and consumers.
These new regulations would require businesses to clearly disclose fees in the total price of a product at the time that price is first given to consumers.
Companies must also provide clear and accessible information on what those fees cover and if they’re optional. Those businesses are required to provide renewal notices, details on recurring charges, as well as simplify the process for cancelling trial offers and subscriptions.
The requirements will go into effect in September this year, which Campbell said would give businesses adequate time to adjust.
During her announcement Monday, Campbell emphasized the importance of these regulations at a time when many Massachusetts residents are facing concerns about affordability.
"On top of rising costs, we see businesses looking to scam and cheat our consumers out of their hard-earned dollars through deceptive or unfair practices—one of them being, of course, the infamous practice known as junk fees," Campbell said.
"That's why today I'm extremely proud to release regulations making it crystal clear that hidden or surprise junk fees and related billing practices violate our state consumer protection laws," she added.
