New Jersey cracks down on hidden consumer 'junk fees'—extra costly charges
New Jersey launched a crackdown on hidden consumer 'junk fees' on June 15, 2026.
Why it matters: Why it matters: 'Junk fees' are extra, often hidden charges that increase costs unexpectedly, challenging legal compliance and contract clarity. This initiative signals growing regulatory scrutiny affecting consumer-facing businesses and legal risk management.
- Governor Mikie Sherrill signed Executive Order 19 on June 15, 2026, mandating state agencies to review and report on junk fees by September 14, 2026.
- Attorney General Jennifer Davenport and the Division of Consumer Affairs issued an Enforcement Statement explaining junk fees can violate New Jersey law, urging consumers to report violations.
- The crackdown targets deceptive practices such as bait-and-switch pricing (advertising low prices then charging more), hidden costs, misrepresented purposes of fees, and vague or unnecessary surcharges.
- Prior steps include a $50 cap on rental application fees effective May 1, 2026, and warnings to hotels and short-term rentals against hidden fees before the 2026 FIFA World Cup.
On June 15, 2026, New Jersey Governor Mikie Sherrill signed Executive Order 19, kicking off a comprehensive effort to tackle the problem of 'junk fees.' These are extra charges consumers often face without full transparency, such as unexpected service fees, mandatory add-ons, or unexplained surcharges.
The Executive Order directs all regulated state agencies to conduct thorough reviews of how junk fees affect consumers in their industries. Agencies must submit reports with recommendations for legislative or regulatory actions by September 14, 2026.
Attorney General Jennifer Davenport and the Division of Consumer Affairs have issued an Enforcement Statement clarifying how certain junk fee practices may violate New Jersey’s laws. These include bait-and-switch pricing—where advertised prices are misleadingly low before extra fees are added—fees hidden in fine print, misrepresented fee purposes, and vague language that burdens consumers with costly and unnecessary charges. The Division encourages consumers to report such deceptive fees for investigation.
Governor Sherrill said, "New Jersey consumers deserve transparent pricing without hidden fees that worsen the affordability crisis for families." Attorney General Davenport added, "Hidden junk fees increase costs unfairly, and New Jersey businesses are on notice that enforcement action will follow violations." Jeremy Hollander, Acting Director of the Division of Consumer Affairs, emphasized the state's Consumer Fraud Act as a strong legal tool against junk fee deception.
This crackdown builds on prior New Jersey efforts. Since May 1, 2026, rental application fees have been capped at $50, under strict enforcement by the Division. Across industries, similar measures are being enforced, including warnings issued to hotels and short-term rental operators ahead of the 2026 FIFA World Cup to prevent hidden fees from affecting visitors and residents.
Legal professionals should watch this space closely: the initiative anticipates increased regulatory scrutiny that could reshape contractual fee disclosures and consumer protection practices in New Jersey and potentially inspire similar actions elsewhere.
For broader context, consumer advocacy groups like Consumer Reports highlight how junk fees erode consumer trust nationwide. Experts urge businesses to audit fee structures and enhance transparency to avoid legal risk and reputational harm.
By the numbers:
- June 15, 2026 — Date New Jersey signed Executive Order 19 targeting junk fees
- September 14, 2026 — Deadline for state agencies to report findings and recommendations
- $50 — Cap on rental application fees effective May 1, 2026
Yes, but: While New Jersey’s crackdown is a significant step, enforcement effectiveness depends on consumers reporting violations and businesses adopting transparent practices proactively. The complexity of fee structures can make compliance challenging.
What's next: Expect detailed agency reports by mid-September 2026; legislators may propose new laws based on these findings. Other states could follow New Jersey’s lead in regulating junk fees.