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March 24, 2025 | Legal Advisory

On March 3, 2025, the Massachusetts Attorney General’s Office (AGO) finalized regulations aimed at “junk fees,” (the “Junk Fee Regulations”) which are described in the AGO’s press release on the regulations as “hidden, surprise, or unnecessary costs that increase the total price of a product beyond the advertised price.” Specifically, the Junk Fee Regulations expand the definition of what constitutes “unfair and deceptive” acts and practices under the Massachusetts Consumer Protection Law and enhances the AGO’s authority over such practices. The Junk Fee Regulations take effect on September 2, 2025. This alert provides an overview of the Junk Fee Regulations and key takeaways for businesses operating in Massachusetts.

Contents of the Junk Fee Regulations

With the Junk Fee Regulations[1], Massachusetts becomes just the third state to ban junk fees under its state consumer protection law. The Junk Fee Regulations—originally proposed by the AGO in November 2023 and which was subject to a public hearing and comment session in December 2023—indicate states’ growing enforcement in the consumer protection space in light of shifting priorities at the federal level.

The Junk Fee Regulations require certain disclosures from businesses operating in Massachusetts with respect to any advertising, marketing, solicitation, or sale of a “Product,” which the Junk Fee Regulations define as “[a] good, whether tangible or intangible, or service available for [s]ale or included as part of a [s]ale for personal, family, or household use.” The Junk Fee Regulations are also clear that “memberships, subscriptions, and dwelling units available for rent or lease” are included in the definition of “Product.”

Under the Junk Fee Regulations, any entity transacting business in the Commonwealth must clearly and conspicuously disclose the following to its Massachusetts customers:

• The maximum total price a consumer may pay for a Product, including any mandatory charges or fees, whenever pricing is presented to a consumer, both at the initial presentation of pricing and prior to requiring a consumer to provide their personal information;
• The nature, purpose, and amount of any fees, charges, or other expenses that may be imposed on a transaction; and
• Whether any charges are optional for the consumer or waivable by the seller, along with readily available instructions on how to avoid any optional or waivable charges.

As previously mentioned, the Junk Fee Regulations also explicitly apply to recurring charges related to memberships and subscriptions. Upon a consumer enrolling in a membership or subscription from a business operating in Massachusetts, a business must clearly and conspicuously disclose:

• What a consumer will be charged for and if any charges will increase after a certain period, including trial periods;
• If charges will recur unless timely cancelled by a consumer; and
• Instructions on how to cancel a recurring charge or subscription and avoid being charged for the Product.

Related to memberships and subscriptions, the Junk Fee Regulations also explicitly focus on trial offers, where a consumer enters into a membership or subscription without charge for a limited period of time before their membership or subscription results in a financial obligation. In connection with any trial offer, a business operating in Massachusetts must clearly and conspicuously disclose:

• Any financial obligations a consumer may incur as a result of accepting a trial offer;
• Any Products for which charges may be incurred as a result of accepting a trial offer;
• Instructions for consumers to reject or cancel a trial offer before incurring a financial obligation;
• The calendar date by which a consumer must reject or cancel a trial offer to avoid incurring a financial obligation; and
• The calendar date on which a consumer will incur a financial obligation if the consumer fails to reject or cancel a trial offer.

Under Massachusetts law, the AGO can seek up to $5,000 in penalties per violation of the Junk Fee Regulations in civil enforcement actions related to unfair and deceptive acts and practices.

Takeaways for Massachusetts Businesses

Companies doing business in the Commonwealth, especially those who market to Massachusetts consumers online, should take time between now and September 2025 to ensure their pricing practices comply with the Junk Fee Regulations in advance of their effective date. Some key steps businesses should take include:

• Adjusting consumer-facing materials to ensure that pricing information is straightforward;
• Ensuring that customers can easily cancel recurring payments, subscriptions, and trial offers;
• Ensuring that wherever Product pricing is displayed, all mandatory fees and charges are conspicuously displayed;
• Disclosing prominently the total cost of any Product offered; and
• Itemizing any fees transparently.

Additionally, the AGO has issued guidance for businesses related to the Junk Fee Regulations. The guidance seeks to help ease commercial compliance with the regulations.

What’s Next?

The AGO will be closely monitoring businesses once the Junk Fee Regulations take effect in September, and we anticipate seeing the first enforcement actions related to the regulation in late 2025 or early 2026. With penalties that can rise as high as $5,000 per violation, potential fines related to violations of the Junk Fee Regulations can escalate quickly. Implementing clear policies and procedures well in advance of the effective date will help businesses ensure compliance. 

[1] The Junk Fee Regulations are codified at 940 Mass. Code Regs. 38.00 et seq.

This advisory was prepared by Bryan Connor and Theo Danias in Nutter’s Litigation Department and Daniel Hartman in the Corporate Department. For more information, please contact the authors or your Nutter attorney at 617.439.2000.

This update is for information purposes only and should not be construed as legal advice on any specific facts or circumstances. Under the rules of the Supreme Judicial Court of Massachusetts, this material may be considered as advertising.