Illinois Enacts Provisions Banning “Junk Fees”

Illinois recently enacted legislation to prohibit hidden and misleading fees.  The legislation makes it an unlawful practice for a person to advertise, display, or offer a price for goods or services that does not include all mandatory fees or surcharges.  Mandatory taxes or fees imposed by a government entity are excluded from the definition of “mandatory fee or surcharge.”

This legislation targets “junk fees” across various sectors but includes safe harbors for licensed entities.  This includes certain financial institutions that are required to provide disclosures in compliance with federal law, such as TILA, TISA, or RESPA, or state law, such as the Illinois Consumer Installment Loan Act, Residential Mortgage Licensing Act of 1987, or Residential Real Property Disclosure Act.

These provisions go into effect July 1, 2027.