Businesses in Massachusetts are tightening their belts as a new set of regulations targeting "junk fees" looms on the horizon. With the September 2 deadline for compliance approaching, the Massachusetts Attorney General's Office has rolled out updated guidance for businesses to adhere to these consumer-friendly rules. As reported yesterday by mass.gov, the goal is clear: to bring transparency to the total cost of products and services and eliminate surprise charges that consumers face.
To assist businesses with their transition, the AG's Office launched a webinar alongside updated guidelines that clarify the dos and don'ts under the new regulation. Released earlier this year, the webinar and the guidelines outline the specifics of the “junk fee” rules, which prohibit hidden charges that unfairly inflate the cost of items beyond their advertised price. Especially ahead of the enforcement date, the necessity for businesses to understand these rules is critical.
The mandate for price and billing transparency, which is integral to the AGO's regulations, demands that businesses display the overall price of a product, inclusive of any mandatory fees, clearly and before gathering consumer personal data. This level of openness, according to the guidance, ensures customers are not blighted by fees that, the AGO stipulates, violate Massachusetts’ Consumer Protection Act.
Juggling between trial offers and subscription services becomes a tightrope act for businesses aiming to keep themselves in line with the new legal framework. Under the AGO's regulations, trial offers need to spotlight any potential charges, the cancellation process, and the relevant dates by which consumers should act to avoid charges. This is seen as a move to put the consumers in control, helping them avoid the sort of subscription traps that have been a bothersome issue for many.
On the other side of things, recurring charges and subscriptions also face new scrutiny. The updated guidance, posted on the AG's Office website, directs that businesses must clearly lay out any recurring charges, inform consumers about increases after trial periods, and give easy-to-follow instructions for cancelling subscriptions. Moreover, they have to provide advance written notice about subscription renewals, including details of charges, dates, and cancellation methods.
Non-compliance with these regulations after September 2 could result in business owners facing legal actions, both from the AGO and potentially from customers through private legal claims. Crucially, consumers who feel they have been subjected to these "junk fees" have a route to voice their concerns directly by calling the Attorney General’s Consumer Hotline at 617-727-8400 or by filing a consumer complaint. Massachusetts stands poised to tackle these much-maligned junk fees, with the countdown to compliance ticking away for businesses across the state.
