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Sneaky ‘junk fees’ on bills and receipts banned under tough new crackdown starting September 2

An image collage containing 1 images, Image 1 shows Shocked man looking at a grocery receipt

SELECT consumers will be able to avoid sneaky added surcharges starting next month.

Officials are starting to crack down on the fees, often not spotted on receipts until after payment has been made.

Shocked man looking at a grocery receipt.
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Consumers in one state will be more protected from hidden fees soon (stock image)[/caption]

“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,” Massachusetts Attorney General Andrea Campbell noted in a news release earlier this year.

Campbell and legislators have had enough, and are implementing a new consumer protection law starting September 2 that requires businesses to be clear about the total costs of goods and services before any transactions are made.

This also applies to trials and subscription offers.

“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,” the attorney general continued.

Under the legislation, any “junk fees” or similar charges would violate the Massachusetts Consumer Protection Act.

The bill has at least three crucial rules.

First, the complete pricing of a product, which includes any and all charges or mandatory fees, must be presented to consumers prior to them handing over personal information.

Secondly, the “nature, purpose, and amount of any charges that may be imposed on a transaction” must be explicitly defined.

And lastly, the comprehensive pricing total that includes all costs must be the most prominently displayed compared to other itemized charges.

For trial offers and automatic renewals there are at least five stipulations that businesses must follow starting on September 2 in Massachusetts.


All charges a consumer could incur from the offer or renewal must be clearly disclosed before accepting.

Products that will have charges must also be defined, along with instructions to reject or cancel, the calendar date by which cancellation has to be made to avoid being charged, and the calendar date when the customer will be charged if they fail to cancel.

For recurring charges and subscriptions, there are three disclosure requirements.

They include what consumers will be charged and if there will be increases after a certain period, if the charges will occur regularly, and instructions on how to cancel the recurring charge or subscription.

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.


Andrea CampbellMassachusetts Attorney General

KEEP IT THE SAME

Massachusetts businesses also have to make the process of canceling subscriptions and recurring charges the exact same as they were to sign up for them.

“For example, if a consumer enrolls in a subscription through a website, they must be able to cancel the subscription through the same website,” the release notes.

There’s even a requirement under the law that businesses provide advance written notice to customers about subscriptions that include “details of when a subscription will renew, how much the consumer will be charged and when, and how the consumer may cancel.”

More information can be found on guidance sheet provided by the Massachusetts Attorney General’s Office.

After the law takes effect next month, residents who feel they were unfairly charged “junk fees” can also file a consumer complaint online or call 617-727-8400.

GROWING TREND

Other states have already implemented similar measures.

Minnesota approved a bill last year that became effective as of January 1, 2025.

“Minnesotans value transparency, which is why we’re putting an end to junk fees on everything from food and entertainment to hotels and credit card fees,” Governor Tim Walz said in a statement at the time.

California did the same, with the law enacted on July 1, 2024.

“The law is simple: the price you see is the price you pay,” Attorney General Rob Bonta said.

FTC TAKES ACTION

On a national level, the Federal Trade Commission (FTC) implemented the Rule on Unfair or Deceptive Fees on May 12, 2025.

It specifically “prohibits bait-and-switch pricing and other tactics used to obscure and misrepresent total prices and fees for live-event tickets and short-term lodging.”

Platforms like Ticketmaster also spoke out after the FTC’s legislation went into effect, promising the “full price” only.

Some shoppers may also still be paying hidden fees at Walmart, Target, and Costco without knowing they are.

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