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HB 955

NC Junk Fee Prevention Act.

2025-2026 Session Introduced by Mary Belk and 9 co-sponsors

Requires clear disclosure of total price including mandatory fees for covered services and bans deceptive or excessive fees, with AG enforcement and penalties.

Passed 1st Reading
0
WeVote Research Nonpartisan
Bill Summary · HB 955

HB 955 — "NC Junk Fee Prevention Act" — Summary

Status and procedural posture
- Bill: H.B. 955 (North Carolina, 2025 session) — titled the North Carolina Junk Fee Prevention Act.
- Introduced: (filed) Nov. 12, 2024. Status (per materials provided): Passed 1st Reading (April 2025) and referred to rules.
- Sponsor: Representative Longest.

Purpose and intent
- Establish statewide consumer protections against undisclosed, excessive, or deceptive mandatory fees (commonly called "junk fees"), require clear price transparency in advertising and ticket listings, and restrict certain early-termination charges for specified services.

Key provisions — new Article (Chapter 66, Article 52)
1. Definitions
- Consumer: an individual residing in or traveling in North Carolina.
- Covered entity: at minimum, providers or advertisers of short-term lodging (occupancy < 6 months); the Attorney General may add other entities.
- Covered services: internet; voice service; commercial mobile service; commercial mobile data; multichannel video programming distributor services (MVPD); and bundles including those services.
- Mandatory fee: any fee/surcharge a consumer must pay to purchase an advertised good or service, a fee not reasonably avoidable, or a fee a reasonable consumer would not expect; the AG may further define.

  1. Price transparency and fee disclosure (§ 66‑513)

    • Every covered entity must clearly and conspicuously display the total price (including all mandatory fees) in each advertisement and wherever a price is first shown.
    • The total amount of mandatory fees must not increase during the purchase process.
    • Covered entities may not impose or advertise mandatory fees that are excessive or deceptive.
    • Refunds/guarantees must be disclosed before transaction completion; refunds, when made, must return the total paid (including mandatory fees).

  2. Covered service protections (§ 66‑514)

    • Providers of covered services may not charge fees or impose unreasonable/excessive requirements for early termination of service, except they may charge for: (a) rental/loan equipment not returned within a reasonable period; and (b) outstanding costs of a purchased device.

  3. Enforcement and remedies (§ 66‑515)

    • Attorney General (AG) may adopt implementing rules and enforce the Article.
    • Civil penalties up to $5,000 per violation; proceeds go to the Civil Penalty and Forfeiture Fund. AG may seek cease-and-desist orders or other relief.
    • When assessing whether a fee is "excessive," the AG must consider factors such as proportionality to the provider’s cost and the reason for the fee.
    • A violation is treated as an unfair or deceptive trade practice under existing state law (G.S. 75‑1.1).

Amendment to ticket price transparency (G.S. 75‑44)
- Secondary ticket exchanges, ticket issuers, and resellers must clearly and conspicuously disclose the total ticket price (including mandatory fees and any maximum order-processing fee) whenever price is shown.
- The total ticket price displayed at the start of a ticketing session may not increase during that session except for specified charges (e.g., actual non-electronic delivery charges, government taxes/fees, and a reasonable processing fee).
- Mandatory fee descriptors must not be deceptive; the actual dollar amounts must be disclosed prior to purchase.

Who is affected
- Consumers: greater upfront price visibility and protections against surprise mandatory fees and certain early-termination charges.
- Businesses: short-term lodging providers (hotels, vacation rentals), ISPs, telecom and mobile service providers, MVPDs, ticket issuers and resale platforms, and other entities the AG may include — will need to change advertising, checkout flows, contract terms, refund practices, and compliance procedures.
- State enforcement: expanded role for the Attorney General to adopt rules, investigate, and enforce penalties.

Potential impacts and considerations
- Consumer benefit: increased price transparency and potential reduction in surprise or hidden fees.
- Business compliance costs: updates to advertising materials, websites, point-of-sale systems, contractual terms, and staff training; possible exposure to civil penalties and private litigation under unfair/deceptive trade practices law.
- State fiscal/administrative: enforcement could increase AG workload; penalty receipts directed to the Civil Penalty and Forfeiture Fund. No explicit fiscal note provided in the bill text.

Notes
- The bill gives the Attorney General discretion to identify additional covered entities and fees and to adopt implementing rules, which will shape scope and enforcement.
- The text treats violations as unfair/deceptive trade practices, potentially enabling private actions under existing consumer protection statutes.

Compiled from official sources — confirm details with the bill’s official record.

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