How many times have you tried to cancel a subscription after the trial period and continue to be billed notwithstanding your cancellation? How many times have you ordered something only to find out that the true price of the purchase is significantly different? Well, if this has happened to you, you’re now in luck if you live in Massachusetts, even if you make the purchases online.
Andrea Campbell, the Attorney General for the Commonwealth of Massachusetts, has proposed regulations for unfair and deceptive fees. These regulations cover both of these scenarios. The regulations establish standards by defining certain unfair and deceptive acts or practices governing the imposition of fees in connection with marketing, soliciting and the sale of products. The proposed regulations also establish definitions regarding unfair and deceptive acts or practices related to automatic renewal, continuous service contracts, and trial offers. These provisions apply across the board and require that clear and conspicuous notices are given so that the true price of a purchase can be determined and the true mechanism for cancellation is provided. Should a company violate these provisions, the violation by regulation will constitute an unfair and deceptive act or practice pursuant to General Laws Chapter 93A, Section 2.
These regulations are currently proposed but will go into effect in September of 2025. As these regulations go into effect, one can expect a multitude of consumer claims including many class action lawsuits for the violation of these regulations to consumers. The proposed regulation is 940 CMR 38.00 and is titled Unfair and Deceptive Fees.
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