Photo: James Rojas/WBZ NewsRadio
BOSTON (WBZ NewsRadio) — Massachusetts Attorney General Andrea Joy Campbell announced new protections against so-called "junk fees" Monday.
Junk fees are hidden or surprise charges that increase the cost of a product beyond the advertised price and are either not disclosed, only disclosed at the end of a transaction, or disclosed after a consumer has provided their personal billing information.
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These junk fees can pop up "when we're looking to book a hotel room, shopping online, buying concert tickets to see my favorite Beyoncé or Taylor Swift, or renting a car," Campbell told reporters Monday.
"That’s why today I am extremely proud to release regulations making it crystal clear that hidden or surprise junk fees and related billing practices violate our state consumer protection laws," Campbell said.
The new regulations are set to take effect on Sept. 2.
According to the AG's office, the regulations will require businesses to clearly disclose the total price of a product and any mandatory fees, whether any charges are optional and or waivable, and provide instructions as to how a consumer can opt out of those charges.
The regulations also require businesses to show transparency with trial offers, automatic renewals, recurring charges, and subscriptions.
Senior attorney Ariel Nelson at the National Consumer Law Center applauded the protections and singled out the housing market as a prime area for junk fees.
"Renters, struggling to find safe and decent housing within their budget, are some of the hardest hit by junk fees," Nelson said. "Housing providers frequently fail to disclose the many fees renters must pay up front. That means renters may not know the actual amount they’ll owe each month until they begin the lease-signing process, at which point they’ve likely already invested a lot of time into their housing search and paid various fees."
The AG's office said it will offer guidance to landlords and businesses before the regulations take effect on Sept. 2.
WBZ’s James Rojas (@JamesRojasMMJ) reports.