Massachusetts Attorney General introduces new regs against “junk fees”

Orrick, Herrington & Sutcliffe LLP
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Orrick, Herrington & Sutcliffe LLP

On March 3, the Massachusetts Attorney General (AG) announced new regulations to combat so-called “junk fees” by requiring businesses to disclose total product costs upfront and simplify cancellation processes for trial offers and subscriptions. The AG asserted that hidden fees violate the Massachusetts Consumer Protection Act as an unfair and deceptive practice. The regulations, effective September 2, mandate businesses operating in Massachusetts to present clearly the total price of a product, including any mandatory charges, and provide instructions for avoiding optional fees. The regulations aim to ensure transparency in marketing and sales practices. Additionally, the rules require businesses to offer straightforward methods for consumers to cancel subscriptions, aligning cancellation processes with enrollment methods, and to notify consumers in advance about subscription renewals and charges.

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