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AG Campbell Releases “Junk Fee” Regulations To Help Consumers Avoid Unnecessary Costs Effective September 2nd, Regulations Require Businesses in MA To Be Upfront About Fees, Enable Easy Cancellation of Trial Offers and Subscriptions, Prevent Unnecessary Charges, and More

The Massachusetts regulations are effective beginning September 2, 2025, for businesses operating in Massachusetts. In order to assist businesses in complying with the new regulations, the AGO has released guidance for businesses, are available here.  

Excerpts from Press Release:

{***} “The Attorney General’s Office (AGO)’s regulations make clear that hidden “junk fees” and related billing practices violate the Massachusetts Consumer Protection Act. As such, the regulations impose various rules on businesses to prohibit unfair and deceptive practices related to “junk fees,” including during the marketing and sale of products and services, and in connection to trial offers and recurring charges.

“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, only disclose them at the end of a transaction, or after consumers have 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.

By prohibiting such practices, the AGO’s regulations aim to increase price transparency for consumers and help residents more easily avoid and cancel costs that may be optional, waivable, or unwanted. Additionally, by enabling consumers to more easily compare prices while shopping, the regulations level the playing field for businesses.

Among other rules, the AGO’s regulations require businesses to clearly disclose: 

The total price of a product, including any mandatory charges or fees, whenever pricing information is presented to a consumer and prior to requiring a consumer to provide their personal information.  

The nature, purpose, and amount of any charges that may be imposed on a transaction.

Whether any charges are optional or waivable, along with readily available instructions on how to avoid any optional or waivable charges. 

Whenever pricing information is presented to a consumer, businesses must also display the total price of a product more prominently than any other pricing information. 

Trial Offers and Automatic Renewals

  • When presenting a trial offer, the AGO’s regulations require businesses to clearly disclose:
  • Any charges a consumer may incur as a result of accepting a trial offer.
  • Any products for which charges may be incurred as a result of accepting a trial offer. 
  • Instructions for consumers to reject or cancel a trial offer before being charged. 
  • The calendar date by which a consumer must reject or cancel a trial offer to avoid being charged. 
  • The calendar date on which a consumer will be charged if the consumer fails to reject or cancel a trial offer. 

Recurring Charges and Subscriptions

  • Among other rules, prior to the purchase of a product involving a recurring charge or subscription, the AGO’s regulations require businesses to clearly disclose: 
  • What consumers will be charged for and if any charges will increase after a certain period, including trial periods. 
  • If charges will occur on a regular basis unless cancelled by a consumer.
  • Instructions on how to cancel a recurring charge or subscription.” {***}

{***} “The promulgation of these regulations was handled by the AGO’s Consumer Protection Division and Policy and Government Division. The regulations were proposed and promulgated through use of the AGO’s rule-making power under the Massachusetts Consumer Protection Act, enabling the AGO to close existing gaps within the state’s consumer protection laws and combat unfair and deceptive business practices related to “junk fees,” trial offers, and recurring charges across industries.” {***}

Press Release  (03/03/2025)