Bill > SB1991

This bill, known as the "Junk Fee Prevention Act," aims to protect consumers by prohibiting deceptive pricing practices when selling goods or services. It defines key terms like "consumer" (an individual buying for personal, family, or household use), "goods" (tangible items for personal use, including certain financial products), "mandatory fee" (any fee or surcharge that must be paid to purchase an advertised item, is unavoidable, or is for something a consumer would reasonably expect to be included), "person" (any individual or business entity), "services" (work or labor for personal use, including financial services), and "transaction" (an agreement between a consumer and another person). Starting July 1, 2027, businesses will be prohibited from advertising or selling goods and services without clearly and conspicuously displaying the total price, including all mandatory fees, and must disclose the portion of the price that is a mandatory fee before accepting payment. The bill also prohibits misleading disclosures of price components, presenting fees less prominently than the total price, increasing prices after a selection has been made, and charging excessive or unreasonable fees for early contract termination, especially for automatically renewed contracts. Exceptions are made for government taxes, delivery fees based on the chosen method (if disclosed), and bona fide errors with prompt refunds. Violating these provisions will be considered a violation of the Tennessee Consumer Protection Act of 1977, subject to its penalties and remedies. The Commissioner of Revenue is tasked with developing a public awareness campaign about these new requirements by October 1, 2026, with implementation by January 1, 2027.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1991&ga=114