MA AG Cracking Down on "Junk Fees"

Proposed regulations would improve transparency in pricing

Massachusetts Attorney General Andrea Joy Campbell recently announced new proposed regulations to prevent hidden or surprise fees, often known as "junk fees."

The regulations would require that entities offering goods or services for sale in Massachusetts disclose the full purchase price including any service fees and also disclose if any of the fees are optional. These regulations are similar to current rules governing the pricing and sale of airline tickets.

“Millions of Massachusetts consumers are being harmed daily by businesses that charge hidden or surprise fees for profit,” said Campbell. “By prohibiting junk fees and requiring transparency, these proposed regulations will not only ensure that consumers know what they are actually paying for when buying a good or service, but also level the playing field and market for those honest businesses that clearly disclose their pricing upfront.”  

The Consumer Financial Protection Bureau (CFPB) has issued a report on junk fees across a range of financial products.

While federal regulations may eventually address the concerns raised by Campbell, Massachusetts consumers could gain extra protection with new state regulations.

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