New Jersey takes aim at hidden fees that inflate consumer costs

Gov. Mikie Sherrill signed an executive order Monday directing state agencies to identify ways to curb hidden charges known as “junk fees,” while Attorney General Jennifer Davenport announced new enforcement efforts aimed at the deceptive pricing practices.

Executive Order 19 requires executive branch agencies to review the industries they regulate and submit recommendations to the governor’s office by Sept. 14. Agencies are tasked with assessing the impact of junk fees on consumers, proposing rules to curb them, and identifying ways to promote transparent “all-in” pricing.

At the same time, Davenport and the Division of Consumer Affairs issued an enforcement statement outlining how certain junk-fee practices may violate the New Jersey Consumer Fraud Act, and launched a public awareness campaign encouraging residents to report hidden fees.

Examples of junk fees:

• Bait-and-switch pricing that excludes mandatory fees from the advertised price but then tacks them on later in the purchasing process
• Hiding costs in fine print or using websites and apps deceptively designed to make them difficult to spot
• Misrepresenting the purpose of a fee, or whether it is mandatory, in order to obtain payment consent
• Using obscure or vague language to tack on excessively overpriced or useless fees that provide little or no benefit to consumers

State officials said the initiative builds on recent efforts to address hidden fees, including guidance to hotels and short-term rentals ahead of the 2026 FIFA World Cup, enforcement of a new $50 cap on rental application fees, and a lawsuit against lender OneMain Financial over alleged hidden fees.

“Working families are tired of being exploited by businesses hiding the true cost of goods and services,” Davenport said in a statement.

Consumers can report junk fees through the state’s Division of Consumer Affairs website.