[co-author: Stephanie Kozol]*
The Massachusetts attorney general’s (AG) office has finalized new consumer protection regulations aimed at eliminating hidden “junk fees” and improving price transparency. Set to take effect on September 2, the regulations apply across a broad range of industries and are intended to curb alleged practices that obscure the actual cost of goods and services.
What the Regulations Require
The new rules establish clear expectations for how businesses must communicate prices and fees to consumers. Among the key requirements:
- Total price disclosure: Businesses must clearly disclose the full cost of a product or service, including all mandatory fees, upfront, before collecting any personal or billing information.
- Optional fee clarity: If an additional fee is optional, rather than required, companies must make that clear and explain how consumers can avoid it.
- Simplified cancellations: Free trials and recurring charges must be easy to cancel, with cancellation methods that are as simple as enrollment.
- Clearly described pricing: Businesses must avoid misrepresenting fees and ensure all disclosures are presented in a clear and conspicuous manner.
These standards are designed to prevent surprise charges and support fair competition by holding businesses to uniform price transparency requirements.
Industries Covered and Exempted
The regulations broadly apply to businesses engaged in marketing, soliciting, or selling products or services to Massachusetts consumers for personal, family, or household use. This includes sectors such as:
- Retail and E-commerce: Online and brick-and-mortar retailers must disclose total prices, including all mandatory fees, before collecting consumer information.
- Hospitality and Travel: Hotels, resorts, and other lodging providers are required to include all mandatory fees, such as resort or facility fees, in the advertised price.
- Event Ticketing: Companies selling tickets for concerts, sports, and other events must present the full price upfront, without hidden service or processing fees.
- Subscription Services: Businesses offering subscriptions or memberships must provide clear information about recurring charges and easy cancellation options.
- Rental Housing: Landlords and property managers must disclose all mandatory fees in rental listings, ensuring transparency in the total cost of leasing a dwelling unit.
The regulations exempt certain industries where comprehensive regulations on these issues are already in place. Exempted sectors include health care providers, financial services, motor vehicle sales and leasing, and airlines.
The regulations will be enforced under the Massachusetts Consumer Protection Act, which allows the AG to seek civil penalties of up to $5,000 per violation.
Why It Matters
Massachusetts’ action reflects a larger national trend toward regulating junk fees, following similar efforts like the Federal Trade Commission’s recently finalized rule banning hidden fees in ticketing and lodging, California’s new law requiring businesses to disclose the full price of goods and services upfront, and Minnesota’s new law making it deceptive to advertise goods or services that do not include all mandatory fees and surcharges.
With the new Massachusetts regulations taking effect on September 2, businesses should consider reviewing their pricing and billing practices, auditing consumer disclosures, and ensuring that their cancellation policies comply with the new requirements. Efforts to comply with Massachusetts’ regulations also position businesses ahead of the curve as other jurisdictions pursue similar reforms.
*Senior Government Relations Manager
