United States of America: Attorney General's office released regulation on combatting hidden, surprise, or unnecessary fees or charges (940 CMR 38.00)

On 14 March 2025, the Attorney General's office released a regulation on combating hidden, surprise, or unnecessary fees or charges (940 CMR 38.00), which enters into force on 2 September 2025. Under the regulation, businesses must clearly disclose the total price of a product and whether any charges are optional. Businesses must make readily available instructions on how to avoid optional charges. When presenting a trial offer, the regulations require businesses to clearly disclose charges a consumer may incur as a result of accepting a trial offer, any products for which charges may be incurred as a result of accepting a trial offer, and instructions for consumers to reject or cancel the offer before being charged. They must also disclose the date by which cancellation is required to avoid being charged, and the date on which a consumer will be charged if the consumer fails to cancel. Prior to the purchase of a product involving a recurring charge or subscription, businesses must clearly disclose what consumers will be charged for and if any charges will increase after a certain period, if charges will occur on a regular basis unless cancelled by a consumer, and provide instructions on how to cancel a recurring charge or subscription. The regulation also requires businesses to make cancellation simple and accessible. Finally, the regulation requires businesses to provide advance written notices regarding their subscriptions. The notices must include details of when a subscription will renew, how much the consumer will be charged, and when and how the consumer may cancel.