Who is exempt from the Massachusetts junk fee rule (940 CMR 38)?
Quick answer
There is no small-business exemption in Massachusetts rule 940 CMR 38. Section 38.06 treats some businesses as compliant when they follow other rules: car dealers and manufacturers meeting 940 CMR 5.02 to 5.04 (price rules only), health care providers following M.G.L. c. 111, s. 228, creditors following Truth in Lending, and licensed securities firms. Business purchases fall outside.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Car dealers and manufacturers | Compliance with 940 CMR 5.02, 5.03 and 5.04 counts as compliance with 38.04(1)-(4) and (6) (38.06(1)) | 940 CMR 38.00 (Mass. AG) |
| Health care providers | Compliance with M.G.L. c. 111, s. 228 for covered admissions, procedures or services counts as compliance with all of 940 CMR 38.00 (38.06(2)) | 940 CMR 38.00 (Mass. AG) |
| Creditors | For advertising, sale or renewal of credit, compliance with M.G.L. c. 140D, 209 CMR 32.00, 15 U.S.C. 1601 et seq. and 12 CFR 1026 counts as compliance with 940 CMR 38.00 (38.06(3)) | 940 CMR 38.00 (Mass. AG) |
| Securities | Licensed or registered persons complying with M.G.L. c. 110A and 950 CMR 10.01-14.413: compliance with 38.04(1)-(4), (6) and 38.05 (38.06(4)) | 940 CMR 38.00 (Mass. AG) |
| Consumers only | The rule protects natural persons buying for personal, family or household use (38.01, 38.03) | 940 CMR 38.00 (Mass. AG) |
| Out-of-state sellers | Covers offers targeted to, or resulting in a sale in, Massachusetts (38.02) | 940 CMR 38.00 (Mass. AG) |
| Taxes and shipping | The total price may exclude government charges and shipping charges, but the final price before sale must include them (38.03, 38.04(3)(a)) | 940 CMR 38.00 (Mass. AG) |
| Federal law | The rule applies unless preempted by federal law (38.08) | 940 CMR 38.00 (Mass. AG) |
| Penalty | No separate dollar fine in the rule itself. A violation is an unfair or deceptive practice under M.G.L. c. 93A, s. 2; in an Attorney General case the court may order a civil penalty of up to $5,000 for each violation if the business knew or should have known (c. 93A, s. 4) | M.G.L. c. 93A, s. 4 |
| Last verified | October 29, 2026 | Astor Ventures |
Are car dealers fully exempt?
No. Following 940 CMR 5.02-5.04 covers only the price rules in 38.04(1)-(4) and (6). The ban on calling a fee "required by law" (38.04(5)) and the auto-renewal rules (38.05) are not in that safe harbor.
My business is outside Massachusetts. Does it apply?
Yes, if your advertising or offer is targeted to Massachusetts consumers or results in a sale there (38.02).
Is a small business exempt?
The rule has no size threshold. Its exceptions are the industry safe harbors in 38.06 and the consumer-only scope.
Want it done in an afternoon? The Massachusetts junk-fee & auto-renewal kit turns these rules into fill-in templates, a checklist and a tracker, with the official sources quoted. One-time payment of $49, instant download.
What else do people ask?
Do B2B sales count?
No. Products must be for personal, family or household use (38.03).
Must taxes be in the advertised price?
No; government charges may be left out of the total price, but must be in the final amount before purchase (38.03, 38.04(3)(a)).
What is the fine?
The rule has no fine of its own; the Attorney General can seek up to $5,000 per violation under M.G.L. c. 93A, s. 4.
Is this legal advice?
No. General information only.
Related guides
← Massachusetts junk-fee & auto-renewal kit · All guides · All kits