In Massachusetts, unnecessary fees are gradually disappearing, but car buyers may still encounter them.

In an effort to enhance the car buying experience, Massachusetts has implemented new regulations that aim to tackle the industry norm of hidden fees, often referred to as junk fees. These regulations, championed by Attorney General Andrea Campbell, are designed to promote transparency and honesty in advertising practices.

Under the new rules, businesses in Massachusetts, including car dealerships, are prohibited from misrepresenting fees as required by law when they're not. They must now advertise a product's total price, including all mandatory charges aside from government taxes and shipping. This move is part of a broader initiative targeting hidden or 'drip' fees across industries like hotels, concert ticketing, and online shopping.

However, traditional car dealerships in Massachusetts are mostly exempt from these new transparency rules due to older state-level advertising law provisions. This exemption has raised concerns among some consumers, who hope that the regulations will be expanded to cover all aspects of the car buying process.

The new regulations also address trial offers and 'negative option' billing, recurring charges that kick in unless the customer cancels. For instance, satellite radio subscriptions bundled into a car sale would fall on the provider, not the dealer, for compliance. Dealers must still avoid misrepresenting fees and comply with rules on subscriptions under the new regulations.

Businesses in Massachusetts must also flag charges that are optional under the new regulations. This is particularly relevant for finance and insurance products, usually prepaid in a loan, which aren't structured as negative options.

The Massachusetts State Automobile Dealers Association has expressed mixed feelings about the new regulations. Initially, they considered the original plan "very onerous" against dealers. However, Robert O'Koniewski, executive vice president and general counsel for the association, has stated that the state did "a very good job" listening to what the lobby wanted.

Despite the new regulations, buying a car from a dealer remains one of the least liked retail experiences in America. It remains to be seen if the customer experience improves, suffers, or stays largely the same in Massachusetts due to the new regulations.

One thing is certain, however: the shift toward direct sales by manufacturers is largely inevitable, and the opposition from traditional dealerships in Massachusetts is unlikely to fully stop it. As more consumers embrace the convenience and transparency of direct sales, it is hoped that the car buying experience will become more customer-friendly in the near future.