By Bob Katzen
Attorney General Andrea Campbell announced that new regulations promulgated by her office earlier this year, which make junk fees and deceptive pricing illegal, took effect on September 2.
Campbell’s office explained that 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.
“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,” said Campbell. “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. Amidst rising costs, these historic regulations not only provide individuals with 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.”