New regulations on hidden "junk fees" take effect in Massachusetts on Sept. 2 and apply to business owners, including landlords. Landlords must clearly disclose the total price before collecting personal information from potential tenants. Landlords must state the nature, purpose and total cost of a transaction upfront and indicate whether charges are optional or waivable. The rules specify size and location requirements for written disclosures and set standards for audible disclosures' volume, speed and cadence. Digital disclosures must be unavoidable. The guidance notes landlords may instead fold fees into rent to avoid a separate disclosure.
The change requires landlords to clearly disclose the total price of a product prior to collecting personal information from potential tenants. Additionally, landlords must state the nature, purpose and total cost of a transaction upfront and explain whether charges are optional or waivable. The new regulations also dictate specifics about cost disclosures, including size and location of written disclosures and volume, speed and cadence of audible disclosures.
"We've all been there: booked a hotel room, purchased concert tickets or paid for a service that was advertised at one price and then charged for one exponentially higher - all because of hidden junk fees," said AG Campbell in a press release. "These regulations seek to keep more money in residents' pockets by combatting these unnecessary fees and ensuring consumers understand exactly how much and what they are paying for."
In an advisory message for members, the Greater Boston Real Estate Board explained that "a landlord may opt to include a fee as part of the rent, in which case no special disclosure need be made. For example, a landlord who wants to charge $1,500 in monthly rent plus an additional $100 amenity fee may elect to simply increase the rent to $1,600."
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