Massachusetts' New Fee & Auto-Renewal Law: What It Gives You
The AG's junk-fee regulations: the total price up front, the cancel-by date disclosed, and cancellation as easy as signup.
940 CMR 38.00 (Mass. Attorney General regulation under M.G.L. c. 93A) — Issued by Attorney General Campbell in March 2025; enforceable from September 2, 2025.
Junk fees: the total price must come first
- The total price — including all fees a consumer cannot avoid — must be disclosed clearly and conspicuously the first time a price is presented. Taxes and government charges may be excluded.
- Before collecting your payment information, a business must disclose the nature, purpose, and amount of every fee and whether it is optional.
- The advertised price of a gym membership generally should reflect what you will actually pay — a mandatory “annual,” “facility,” or “processing” fee that first appears at checkout (or on your card statement) is exactly what the regulation targets.
Subscriptions and trials: the cancel-by date, in writing, before you commit
- Before you accept a trial offer or any subscription that renews automatically, the seller must disclose that it converts or renews, what it will cost, how often you will be charged — and the calendar date by which you must cancel to avoid the next charge.
- There must be a simple cancellation mechanism that is at least as easy to access and use as the way you signed up, in the same medium (online, phone, mail, or in person).
- If cancellation is by phone, the line must actually work: calls handled promptly, or an automated/voicemail path that lets you complete the cancellation before the next charge.
| Law | Unfair and Deceptive Fees Regulations |
|---|---|
| Citation | 940 CMR 38.00 (Mass. Attorney General regulation under M.G.L. c. 93A) |
| All-in pricing rule | 940 CMR 38.00 (total-price and fee-disclosure rules, esp. 38.04) |
| Auto-renewal / cancellation rule | 940 CMR 38.00 (trial-offer and negative-option rules, esp. 38.05–38.06) |
| Effective | September 2, 2025 — Issued by Attorney General Campbell in March 2025; enforceable from September 2, 2025. |
| Enforcement | 940 CMR 38.00 was issued under the Massachusetts Consumer Protection Act (M.G.L. c. 93A), so a violation is an unfair or deceptive practice. The Attorney General enforces it, and c. 93A also gives consumers their own remedy — typically starting with a written 30-day demand letter under c. 93A, § 9. |
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Your gym-specific rights still apply
Massachusetts gym members also keep their separate rights under the state health-club law (M.G.L. c. 93, §§ 78–88), including the 3-business-day cooling-off right and specific refund deadlines.
Massachusetts new-law FAQ
Does the Massachusetts junk-fee rule apply to gyms?
The regulation is industry-agnostic: it applies broadly to businesses selling to Massachusetts consumers, with limited carve-outs. A mandatory membership fee that was not in the disclosed total price is the kind of practice it targets — though its application to any specific fee can depend on the facts.
My gym makes me mail a certified letter to cancel but let me sign up online. Is that allowed?
For subscriptions with automatic renewal (negative-option) features, 940 CMR 38.00 requires a cancellation mechanism at least as easy as signup, in the same medium you used to sign up. An online signup paired with a mail-only cancellation is the mismatch the rule addresses. The health-club law adds separate written-cancellation rights.
What can I actually do if a Massachusetts business violates 940 CMR 38?
You can complain to the Attorney General, and because the regulation sits under c. 93A you can also send a 30-day demand letter and pursue your own c. 93A claim (which can carry multiple damages for knowing violations). Talk to an attorney about whether your facts support that.
940 CMR 38.00 is a new regulation — the Attorney General has published guidance, but how it applies to specific fees and cancellation setups is still being worked out in practice, and exemptions exist for some regulated industries. Verify the current regulation text and AG guidance before relying on it, and talk to a Massachusetts attorney about your specific situation. This page is general information, not legal advice.