New Nine Page Set of Rules Outlines Violations of MA Consumer Protection Act
Starting Tuesday, Attorney General Andrea Campbell’s office is enforcing broad new state regulations that require companies doing business here to be upfront about true costs of their product or service and to make it easier for customers to cancel trial offers and subscriptions.
The so-called junk fee regulations that Campbell promulgated in March took effect Tuesday, adding a layer of defense against things like surprise fees added onto concert tickets and hotel bookings, recurring charges for hard-to-cancel subscriptions and other consumer annoyances that Campbell said, “have quietly cost consumers around the country tens of billions of dollars each year.”
“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,” the AG said. “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.”
The nine-page set of rules states that hidden or surprise junk fees and similar billing practices violate the Massachusetts Consumer Protection Act, and they apply to all businesses that operate, advertise, or sell in Massachusetts, including online and out-of-state businesses. State courts can award aggrieved consumers actual damages (and in some cases up to triple damages) for violations of the state’s consumer protection law, according to Campbell’s office.
The rules require businesses to clearly disclose the price of a product, including any mandatory charges or fees, whenever pricing information is presented to a consumer and before they have to provide their personal or billing information. Each of those charges must be labeled with the purpose and amount of the fee. The regulations also require businesses to clearly state whether a charge is optional or waivable, and instructions on how to avoid the charge if possible.
When presenting a trial offer, businesses must now clearly disclose any charges a consumer may incur if they accept the trial. The business will also have to provide instructions for consumers to reject or cancel a trial offer before being charged, and a notice of the calendar date by which the consumer must cancel to avoid being charged. And the process for cancelling an offer “must be at least as easy to access and use as the method the consumer used to initiate” the trial offer, the regs say.
Campbell said anyone who thinks they were on the wrong end of an unfair or deceptive practice related to junk fees can file a consumer complaint with her office.
