
"Junk fees are "hidden, surprise, or unnecessary costs that increase the total price of a product beyond the advertised price" that businesses often don't disclose until the end of the transaction," according to the state Attorney General's Office. "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.""
""Today, as we build upon the Commonwealth's nation-leading legacy of consumer protection, we make clear that 'junk fees' and deceptive pricing are not lawful," Attorney General Andrea Campbell said in a release. "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""
""Unexpected and confusing, junk fees have proliferated across the economy, costing families at least tens of billions of dollars each year," said Ariel Nelson, senior attorney at the National Consumer Law Center in Boston, at a March press conference regarding the rules. "These fees obscure the true price of goods and services, prevent comparison shopping, and make a profit off of gotchas.""
Massachusetts now bans undisclosed "junk fees" and requires businesses to disclose all fees before consumers provide personal information. Junk fees are defined as hidden, surprise, or unnecessary costs that raise the total price beyond the advertised amount. The prohibition covers additional renter's fees, online trial offers, subscriptions, automatic and recurring charges, and practices that make cancellation difficult. Any undisclosed fees listed after a consumer provides personal information violate the Massachusetts Consumer Protection Act. Businesses offering trial periods must disclose charge amounts, charge dates, and cancellation deadlines. The rules were announced in March to increase transparency and promote fair competition.
Read at Boston.com
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