New rules about "junk fees" take effect in Massachusetts. Here's what to know.

New rules banning "junk fees" take effect in Massachusetts

New rules banning "junk fees" have taken effect in Massachusetts.

Attorney General Andrea Campbell says the "historic" regulations will require businesses in the state to be upfront about additional fees and let people cancel trial offers easily before they are charged more money.

"From concert tickets and hotel bookings, to subscription services and apartment rentals – surprise and unnecessary charges have quietly cost consumers around the country tens of billions of dollars each year," Campbell said in a statement.

What are "junk fees"? 

Campbell's office defines junk fees as "hidden, surprise, or unnecessary costs that increase the total price of a product beyond the advertised price."

"Businesses often do not disclose such fees upfront or only share them at the end of a transaction after consumers have already provided their personal billing information," the attorney general said.

Back in May, a new federal rule targeted hidden fees at live sporting events and concerts, and also required short-term rental companies like Airbnb to more prominently display total prices on their websites. 

What's affected by the new regulations?

The attorney general said the new rule affects hotel room bookings, concert tickets, apartment rentals, as well as any businesses that operate, advertise or sell products in the state, including online businesses and companies that are based outside of Massachusetts. 

Businesses will have to display the total price more prominently, before customers enter payment information. 

For example, Campbell's office said that hotels must include in the total price fees that customers can't reasonably be expected to avoid, like a towel use fee or credit card processing expense. 

The rules also target trial offers and subscriptions that "conceal the total cost and nature of a product or service, while making it difficult for consumers to cancel or opt-out of such features."

Airline tickets are not affected by the new rules, as that industry is regulated by the federal government.

Anyone who thinks they have encountered an unfair "junk fee" can file a consumer complaint on the attorney general's website. You can click here to read the full regulations.

Rules for restaurants

The rules also require restaurants to "clearly provide customers the total price of food, including fees, on menus and bills."

Lauren Friel, the owner of Rebel Rebel wine bar in Somerville, spoke out against the new regulations on social media. She said that for years, her business has used a 23% "hospitality included" model tacked on to customer receipts instead of relying on tips.

"The way we've operated for five years is changing overnight," Friel said in an Instagram video. "It's a huge setback for equity and fair pay for workers in this industry ... nobody got to vote on this at all."

Restaurants are still allowed to charge a service fee for large parties, but have to incorporate any fees into the total price of a product.

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