Americans pay billions—yes, billions—in hidden junk fees each year. Now, New Jersey is cracking down.
Governor Mikie Sherrill and Attorney General Jennifer Davenport announced a coordinated crackdown on junk fees, signing an executive order on Sunday directing state agencies to identify and eliminate hidden charges that drive up costs for consumers.
Executive Order 19 requires all Executive Branch departments and agencies to assess junk fees within the industries they regulate and submit recommendations to the Governor’s Office by September 14. Agencies must propose rulemaking to curtail the fees, recommend measures to ensure transparent “all-in” pricing, and identify any other steps the state can take to reduce hidden charges.
The order defines junk fees as “hidden, surprise, or excessively overpriced fees, including those associated with a good or service that provides little or no benefit to the consumer.” A 2024 White House Council of Economic Advisors analysis—conducted under President Biden—found that 10 specific categories of junk fees alone cost Americans $90 billion per year. That’s roughly $650 per household annually. For millions squeezed by a cost-of-living crisis, every dollar spent matters.
Alongside the executive order, Attorney General Davenport and the Division of Consumer Affairs published an enforcement statement outlining how junk fees may violate the New Jersey Consumer Fraud Act—one of the strongest consumer protection statutes in the country. The statement identifies common practices including bait-and-switch pricing, hiding costs in fine print, misrepresenting whether fees are mandatory, and tacking on vague charges that provide little value to consumers.
“Hidden and worthless junk fees are increasing costs for families, and we are putting New Jersey businesses on notice that we won’t hesitate to act when we see them,” Davenport said.
The initiative is part of a broader push by the Sherrill administration on affordability. In March, the Attorney General’s office sued OneMain Financial for charging New Jersey residents an exorbitant $27 million in junk fees between 2021 and 2022. In April, the state issued guidance capping rental application fees at $50. Ahead of the World Cup, hotels and short-term rental providers were warned against hidden pricing tactics.
As pesky junk fees become harder to avoid, the Garden State is doing something about it. New Jerseyans can report junk fees to the Division of Consumer Affairs here.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.