New Jersey launches crackdown on 'junk fees' targeting hidden charges

New Jersey is launching a coordinated offensive against "junk fees" that inflate the cost of goods and services for consumers. Governor Phil Murphy and Attorney General Matthew Platkin announced the initiative, which combines an executive order for state agencies to review regulated industries with a legal compliance statement from the Division of Consumer Affairs. The goal is to reduce or eliminate hidden, unnecessary, or unexpected charges that impact the final price. Governor Murphy's Executive Order 19 directs executive branch departments and agencies to analyze junk fees within their regulatory areas. Each agency must identify common fees, assess their impact on consumers, and propose recommendations for reduction or elimination by September 14. The agencies will report whether new rules, legislative measures, all-inclusive pricing standards, or more transparent disclosure mechanisms are appropriate. Murphy stated that New Jersey residents deserve clear prices, not costs burdened by hidden fees, which exacerbate affordability issues and hinder informed decision-making. The initiative targets various sectors, including rentals, financial services, food delivery, and short-term lodging. Attorney General Platkin and the Division of Consumer Affairs issued a compliance statement clarifying when junk fees may violate New Jersey law. The document addresses practices like bait-and-switch pricing, mandatory charges excluded from advertised prices, hidden costs in fine print, and digital designs that obscure fees. The state warns against companies misrepresenting fee purposes, presenting mandatory charges as optional, or using vague language for excessive costs lacking real consumer value. Such practices could violate the state's strong Consumer Fraud Act. Platkin assured that companies will be notified that the state will act against hidden or valueless charges and urged consumers to report their experiences through the "Fight the Fees" educational materials.