On June 15, New Jersey Governor Mikie Sherrill and Attorney General Jennifer Davenport announced a statewide initiative to crack down on consumer “junk fees” through tighter regulation and enforcement. The announcement is the latest state-level effort to expand consumer protection amid the federal pullback at agencies like the CFPB.
The initiative promises scrutiny of fee practices across multiple industries and contemplates new legislation, rulemaking, and potential legal action against alleged offenders. State officials say the goal is to root out poorly disclosed, unexpected, or excessive charges. The initiative includes several components:
- Directs a government-wide review of fee practices. Gov. Sherrill signed an executive order directing state agencies across New Jersey to identify potential junk fees in the industries they regulate, assess their consumer impact, and suggest new rules or other actions to reduce and eliminate them.
- Sets a September 14 reporting deadline. Agencies must report their findings by September 14, after which the Governor’s office will review the results and coordinate next steps, which could include rulemaking as well as legislation, gubernatorial measures, and cabinet-level actions.
- Warns that some fee practices may already be unlawful. The Attorney General’s office and its Division of Consumer Affairs published an enforcement statement cautioning that certain fee practices may already violate the state’s existing consumer protection laws.
- Targets drip pricing and hidden surcharges under the Consumer Fraud Act. The enforcement statement explains how drip pricing, mandatory add-on fees, and buried surcharges could trigger the state’s Consumer Fraud Act, which bans unconscionable, deceptive, and abusive business conduct.
Putting It Into Practice: New Jersey’s initiative is the latest example of states stepping up consumer protection enforcement, particularly around junk fees, to fill the gap left by reduced federal activity. Massachusetts moved first, adopting junk fee regulations last year, enforceable as of September 2, 2025, that require businesses to be up front about fees and to allow easy cancellation of trials and subscriptions. New York City has since directed its agencies to target “junk fees” and subscription “tricks and traps” (previously discussed here), and California appears poised to follow, having created a new Business and Consumer Services Agency to be led by former CFPB Director Rohit Chopra, for whom junk fees were a signature priority (previously discussed here). With exposure to inadequate fee disclosures already real and the trend spreading, companies operating in these jurisdictions should review their fee disclosures, enrollment flows, and cancellation mechanisms to confirm all mandatory charges are clearly disclosed up front.
Further contributions to this post by Chris Wong, a law clerk in the firm’s Washington, D.C. office.
