Ditching Junk Fees in the Bay State

AARP testified before the Attorney General’s office on new proposed regulations surrounding so-called “Junk Fees.” Massachusetts Attorney General Andrea Joy Campbell announced the proposed regulations last month. Under the regulations, businesses would be required to clearly 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.

AARP backs the move. “Proper disclosure will empower consumers and is the reason AARP supports the proposed regulation defining certain unfair and deceptive acts and practices and requiring the clear and conspicuous disclosure of the total price of a product being advertised to consumers, including any fees, interest, charges, or other expenses necessary to complete a transaction” said Mike Festa, AARP Massachusetts State Director.

AARP believes consumers must have information in order to act rationally to make decisions about price and key terms of service. Including definitions of certain unfair and deceptive practices in automatically recurring charges and trial offers helps ensure Massachusetts consumers are better protected.

“Older adults need access to products and services that create value, solve problems, and make their lives better. In a fair and vibrant marketplace, older adults have the power to make informed choices about the options that best serve their needs at a fair and reasonable price” Festa said in written testimony. You can read the testimony here.

The entirety of the AG’s proposed regulations can be viewed here.

In a similar move, the Federal Trade Commission announced new rules to prohibit junk fees in October. The White House estimates Americans now spend more than $65 billion on fees every year.

According to Consumer Reports, 85% of Americans “have experienced a hidden or unexpected fee for a service in the previous two years,” Those surveyed also said they were paying more in hidden charges than they were five years ago.