The Massachusetts Office of the Attorney General (“AGO”) issued regulations regarding “junk fees” which took effect on September 2, 2025. Attorney General Andrea J. Campbell defined junk fees as “hidden, surprise, or unnecessary costs that increase the total price of a product beyond the advertised price.” The regulation, promulgated as 940 CMR 38.00, will have a broad reach. It applies not only to businesses physically operating in Massachusetts, but also to out-of-state and online companies that advertise, solicit, or sell to Massachusetts consumers. Covered practices include advertisement or marketing, solicitation, or offer of sale that is targeted to, or results in, a sale in Massachusetts, and recurring fees and trial offers.
Although the regulations are new to Massachusetts, litigation over “junk fees” is not. Businesses nationwide have faced increasing class action litigation filings in conjunction with this movement to limit such fees. Winget, Spadafora, & Schwartzberg, LLP, has extensive experience in this area, having previously defended a number of businesses against class actions involving purported “junk fees” from inception through trial. Given the AGO’s focus on this issue, these regulations will most definitely spur increased investigation and class action filings in Massachusetts. The firm is closely monitoring these developments. If your business would like tailored guidance on compliance with the new regulations, or defense in related litigation, please reach out to our Commercial and Business Litigation Practice Group.
To learn more, press here for the Attorney General’s press release, and here to view the full regulation.
