On March 3, Massachusetts Attorney General Andrea Joy Campbell announced new regulations, issued under the Massachusetts Consumer Protection Act, aimed at curbing "junk fees" by requiring businesses to disclose total prices upfront and provide clear information about additional charges. The regulations, set to take effect September 2, 2025, seek to prevent deceptive pricing practices and enhance consumer transparency.
The new regulations impose several requirements on businesses operating in Massachusetts, including:
- Total Price Disclosure. Businesses must clearly disclose the full price of a product or service—including all mandatory fees—at the time of advertisement and before collecting consumer information.
- Fee Transparency. Any additional charges must be itemized, with details on their nature, purpose, and amount. Businesses must also indicate whether they are optional or waivable, along with instructions on how consumers can avoid them.
- Trial Offers. Businesses offering free or discounted trials must clearly disclose any charges a consumer may incur, the specific products or services covered, the deadline for cancellation to avoid charges, and simple, accessible cancellation instructions.
- Recurring Charges and Subscriptions. Businesses must provide clear terms for recurring charges, including any price changes after a trial period, offer a user-friendly cancellation process, and issue written notices before renewals specifying renewal dates, costs, and cancellation methods.
To assist businesses in complying with the new regulations, the AG's Office has released guidance for businesses.
Putting It Into Practice: Massachusetts' new regulations are continued evidence of state regulators filling in the gap left by the pullback of federal regulators. States like California have already taken steps to regulate deceptive fee practices (previously discussed here), and we are likely to see additional state-level initiatives.
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