2026-09-10 · Massachusetts · Regulation

What happened. Massachusetts brought a broad fee-disclosure regulation into force, and it is industry-agnostic — which raises an unanswered question about the charges community association management companies levy on unit owners.

940 CMR 38.00, promulgated by the Attorney General under M.G.L. c. 93A §2(c), took effect 2 September 2025. Business compliance guidance was released 29 July 2025.¹

What it requires

It applies to businesses “engaged in advertising, marketing, solicitation, or offering targeted to or resulting in a sale in Massachusetts,” including out-of-state and online sellers. The core duties:

• Disclose the total price clearly and conspicuously up front
• Disclose the nature, purpose and amount of every fee
• Identify any fee that is optional or waivable, and how to avoid it
• Restrict collecting consumer information before price disclosure

A separate auto-renewal and subscription regime requires clear terms, a simple cancellation mechanism, and advance notice of recurring charges.

The teeth

Violations are per se unfair or deceptive acts under c. 93A — which opens private class actions as well as Attorney General enforcement. In Massachusetts that is a meaningful exposure, because c. 93A carries multiple damages and attorney's fees.

The open question

The Attorney General's guidance names express carve-outs for debt collectors, air carriers and securities sales through licensed professionals, and confirms that property and liability insurance products are covered.²

It addresses rental housing water and sewer disclosures and restaurant service charges by name. It does not name condominium or homeowners association fees, and no exemption for them has been published.

1. 940 CMR 38.00, junk fee regulations, Office of the Attorney General ↩
2. National Law Review, Massachusetts releases junk fee business compliance guidance ↩
3. Division of Banks, 209 CMR 18.00 and related final amendments effective 26 September 2025 ↩