The Attorney General of Massachusetts has proposed regulations to combat the unfair and deceptive business practices of assessing “junk” fees that raise the advertised prices of goods and services.
The What: The proposed regulation largely affects advertisements and solicitations targeted to Massachusetts residents.
- Under the regulations, companies would be required to “clearly, conspicuously, and prominently disclose the total price of a product—including all fees, interest, charges, or other necessary expenses—when a product is advertised and presented to consumers,” the AG’s office announced. Sellers will also be required to note which fees are mandatory and which ones are either optional or waivable. Companies would also be prohibited from requiring consumers to submit any personal information prior to disclosing the total price of a product.
- Companies would also be forced to follow new guidelines for recurring fees and trial offers. For example, if a contract was entered into online, then consumers must be able to cancel them online, the AG’s office proposed.
- For contracts that last more than 30 days, companies would be required to provide at least five (but no more than 10) calendar days of notice to consumers about the window to cancel an agreement.
The When: The AG’s office is holding a public hearing on the proposal on December 20. December 20 is also the deadline to submit comments about the proposal.
The Last Word: “Millions of Massachusetts consumers are being harmed daily by businesses that charge hidden or surprise fees for profit,” said AG Andrea Joy Campbell, in a statement. “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.”
