BOSTON — You’re not alone if you’re sick and tired of getting whacked by “convenience” charges that are often deceptively tacked on to the sale of concert tickets, lodging bills, and other transactions, ultimately hiking prices well above what’s advertised.
[ Tired of junk fees? Here’s what you can do to protect your wallet from hidden costs ]
Massachusetts Attorney General Andrea Joy Campbell is trying to make those unwelcomed “junk” fees unlawful by rolling out new regulations to the state’s consumer protection law.
Campbell’s office said her proposed regulations would require businesses to disclose the total price of a product at the time it is presented to consumers, provide clear and accessible information on whether fees are optional or required, and simplify the process for canceling trial offers and recurring charges, amongst other rules.
“Millions of Massachusetts consumers are being harmed daily by businesses that charge hidden or surprise fees for profit,” Campbell said in a news release. “By prohibiting junk fees and requiring transparency, these proposed regulations will not only ensure that consumers know what they are actually paying for when buying a good or service but also level the playing field and market for those honest businesses that clearly disclose their pricing upfront.”
Junk fees are hidden or surprise fees above the advertised price of a good or service. These fees, sometimes termed “convenience fees” or “service fees,” are often not disclosed or explained, or they are disclosed only near the end of a purchase, rather than at the outset.
The imposition of such fees in this manner is an unfair and deceptive practice, and subject to regulation under the Commonwealth’s consumer protection law, Chapter 93A, according to Campbell’s office.
The proposed regulations will offer strong protections to consumers during the marketing and sale of consumer products, including automatic renewals and recurring payments of subscription services and trial offers, Campbell’s office noted.
“Increasingly, businesses are encouraging customers in Massachusetts to enter into automatically renewing contracts or trial offers. These arrangements are made easy to enter into—sometimes without the consumer even knowing they have done so—but much more difficult to cancel. The AG’s proposed regulations would also prohibit these practices as unfair and deceptive,” the news release stated.
To facilitate transparency in the presentation of a total price, Campbell’s office said that the regulations require that the nature and purpose of fees be clearly explained and that sellers disclose whether such fees are mandatory or instead optional or waivable. Additionally, the proposed regulations would prohibit businesses from requiring consumers to provide personal information, including billing and credit card information, before disclosing the total price of a product.
Campbell’s office said the regulations would additionally require businesses to provide readily available methods of canceling contracts, including a requirement that contracts entered into online must be accompanied by an option to cancel online and disclose the period during which a consumer must cancel a trial offer to avoid incurring a financial charge.
Cambell will hold a public hearing and comment session on the proposed regulations on Dec. 20.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW