No more ‘junk fees’? New regulations take effect in Mass.

Starting Tuesday, new regulations prohibit so-called “junk fees,” requiring businesses operating in Massachusetts to disclose charges upfront and enable the easy cancellation of trial offers.The Regulations were announced in March by Attorney General Andrea Campbell. She said the rules “make clear that hidden ‘junk fees’ and related billing practices violate the Massachusetts Consumer Protection Act.”Under that law, the attorney general has the power to make rules and combat unfair business practices. “Amidst rising costs, these historic regulations not only provide individuals upfront transparency about the true cost of a good or service, but level the playing field for businesses by promoting trust and fair competition. I urge consumers and businesses to view my office’s resources to ensure compliance with the new rules, which my office stands ready to enforce starting today,” Campbell said in a statement. Consumers who believe they have experienced an unfair or deceptive practice related to “junk fees” may file a complaint by visiting mass.gov/ago/consumercomplaint. Summary of new regulations:Provided by Campbell’s officeCombatting Hidden, Surprise, or Unnecessary Charges During Marketing and Sales 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 AGO’s regulations also require businesses to implement simple processes for consumers to cancel subscriptions and other recurring charges, including ensuring that consumers are able to cancel subscriptions just as easily as they are able to enroll in them. For example, if a consumer enrolls in a subscription through a website, they must be able to cancel the subscription through the same website. Additionally, the regulations require businesses to provide advance written notices regarding their subscriptions, including details of when a subscription will renew, how much the consumer will be charged and when, and how the consumer may cancel.