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By Sam Larson
Vice President, Government Affairs
Massachusetts businesses must prepare to comply with sweeping new regulations on price advertising and subscription services. Attorney General Andrea Campbell announced final regulations earlier this month that restrict so called “Junk Fees” – commonly assessed fees and charges that regularly occur in consumer transactions.
These rules will apply to the purchase, lease, or rental of almost all products and services purchased by Massachusetts consumers and only a few industries are exempt. Because the scope of the regulation is anchored by consumers—rather than only businesses—located in Massachusetts, its reach extends to non-compliant out-of-state sellers advertising to, soliciting, or offering products for sale to Massachusetts buyers, including via online transactions.
Companies are now required to disclose the “total price” of any products offered. That total must include all fees, charges or other expenses. The regulations also impose new rules on subscription-based services and automatic renewals.
The regulations were promulgated by the Office of the Attorney General (AGO) and they are final, so they will not be amended. Enforcement will begin on September 2, 2025.
“We support the attorney general’s goal of targeting specific bad actors in the so-called junk fees space, but these regulations will outlaw many legitimate business practices and companies will have to spend significant amounts money adjusting their advertising practices,” said Stephanie Swanson, Executive VP of Government Affairs at AIM. “Massachusetts businesses are struggling to keep up with the constant churn of uncertainty coming out of Washington D.C., so it was surprising to see our own Attorney General implement sweeping new regulations with limited notice.”
More details on specific provisions of the regulations may be found below:
Total Price
Businesses selling to Massachusetts consumers must now disclose the “total price” of their product in a clear and conspicuous manner. The total price must cover any additional costs associated with a purchase and must be shown to the consumer up front during any advertising or presentations. The total price must also be shown more prominently than any other pricing information. All additional charges must also be displayed with descriptions of the nature, purpose, and amount of any charges that may be imposed on a transaction. Shipping costs and local taxes are not required until the final transaction.
Recurring Charges and Subscriptions
The attorney general’s regulations also require businesses to implement simple processes for consumers to cancel subscriptions and other recurring charges, including ensuring that consumers may cancel subscriptions through the same method that they enrolled. For example, if a consumer enrolls in a subscription through a website, the consumer must be able to cancel the subscription through the same website. If a consumer enters a subscription via the phone the company must set up a phone line dedicated to cancelations.
Automatic Renewals and Trial Offers
Businesses operating in Massachusetts must also clearly disclose any charges that a consumer may incur when accepting a trial offer. Companies must provide the calendar date by which a consumer must reject or cancel a trial offer to avoid being charged. In addition, there must be clear instructions to reject or cancel trial offers.
Violations of these regulations will be considered an “unfair and deceptive” business practices under the state’s consumer protection laws. The Attorney General will lead enforcement, but private attorneys can bring cases against businesses that can result in double damages.
If your business may be impacted by the new rules and restrictions and you would like to learn more, please contact Vice President of Government Affairs, Sam Larson, at slarson@aimnet.org. The text of the regulations can be found here.