Effective September 2, 2025, the Massachusetts Attorney General’s office implemented new regulations targeting so-called “junk fees” — hidden or misleading charges often added to bills after a purchase decision is made. 

These changes, enacted under the state’s Consumer Protection Law (Chapter 93A), carry significant weight: they are enforceable by the Attorney General’s office and grant consumers the right to take private legal action against noncompliant businesses 

For restaurants, hospitality businesses, and any organization adding service-related fees. This isn’t a minor policy update — it’s a major compliance shift that could expose you to fines, lawsuits, and reputational risk if ignored. 

What the New Junk Fee Regulations Require 

The new Massachusetts regulations are designed to make pricing more transparent for consumers. Here’s what every business must do to comply: 

1. Display the Total Price Up Front 

All fees must be included in the total price presented to customers — from menu displays to printed or digital bills. 

• The price customers see should reflect the maximum amount they will be required to pay (before tax). 

• Hidden fees added at checkout or on the bill are no longer allowed. 

2. Eliminate or Integrate Add-On Fees 

Charges such as “kitchen appreciation” fees — or any similar add-on charges — can no longer appear as separate line items. 

• Businesses must either eliminate these charges entirely or incorporate them directly into the base menu prices. 

3. Mandatory Service Charges Are Still Allowed — With Conditions 

If you apply a mandatory service charge (like “18% for parties of 6 or more”): 

• It must be clearly disclosed on the menu itself, not just the final bill. 

• These charges must be distributed only to tip-eligible service employees — not kept by the business. 

4. Taxes Are Still Separate — But Must Be Disclosed 

Sales tax can still be excluded from menu pricing, but it must be clearly listed on the bill and presented transparently. 

Why This Matters for Your Business 

This isn’t just about compliance — it’s about risk and reputation. Because the law falls under Chapter 93A: 

• The Attorney General’s office can directly enforce penalties. 

• Consumers can sue businesses individually for violations. 

In short, noncompliance could mean fines, lawsuits, and significant brand damage. 

What Businesses Should Do Right Now 

If you operate a restaurant, hospitality group, or service-based business in Massachusetts, here’s how to protect yourself: 

• Audit your menus and digital listings: Ensure all mandatory fees are built into displayed prices. 

• Review your billing system: Update POS and receipts to comply with disclosure rules. 

• Revisit tipping policies: Confirm mandatory service charges are paid exclusively to tip-eligible staff. 

• Train your staff: Make sure managers and servers understand how to explain pricing changes to customers. 

• Communicate proactively: Update your website, printed materials, and signage to reflect compliant pricing. 

MP Can Help You Stay Compliant 

Regulatory changes like these can feel overwhelming — but you don’t have to navigate them alone. MP’s compliance and HR experts can: 

• Audit your pricing and billing practices for legal compliance 

• Review payroll and tip distribution systems 

• Draft compliant communication templates for staff and customers 

• Build ongoing compliance strategies that keep you ahead of new regulations 

Don’t wait until a fine or lawsuit hits. Contact MP today to review your practices and ensure your business is fully compliant with Massachusetts’ junk fee laws. 

 

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