Senate Bill 1991, known as the "Junk Fee Prevention Act," aims to combat deceptive pricing practices, commonly referred to as junk fees, that mislead consumers in Tennessee. The bill introduces a new section to the Tennessee Code Annotated, which defines key terms such as "consumer," "goods," "mandatory fee," and "transaction." It prohibits businesses from using deceptive pricing methods starting July 1, 2027, including failing to display total prices that include mandatory fees, misleading disclosures of fees, and charging excessive fees for early contract termination. Violations of these provisions will be considered unfair or deceptive acts under the Tennessee Consumer Protection Act.

Additionally, the bill mandates the commissioner of revenue to develop a public notice campaign to inform consumers about these new pricing requirements by October 1, 2026, ensuring that the public is aware of their rights and the changes in pricing practices. The act is set to take effect on July 1, 2026, with the intention of enhancing transparency in pricing and protecting consumers from hidden fees that distort the true cost of goods and services.

Statutes affected:
Introduced: 47-18-104(b), 47-18-104