Massachusetts AG Proposes Rule Regulating "Junk Fees" And Subscriptions

On November 30, Massachusetts Attorney General Andrea Campbell (the "AGO") unveiled a new proposed rule regulating "junk fees" and consumer subscriptions (the "Proposed Rule"). The Proposed Rule in large part mimics, and in some ways expands upon, similar pending Federal Trade Commission ("FTC") proposals regulating "junk fees" and "negative options."

The Proposed Rule would regulate hidden or surprise fees above the advertised price of a good or service, making it the first state attorney general rule on "junk fees," and the first piece of independent rulemaking on negative options (Georgia has adopted the FTC's negative option rule by reference). The Proposed Rule would also regulate the use of subscriptions or trial offers by requiring consumer-facing businesses to prominently provide pricing information and offering clear cancellation methods.