NJ Governor Orders State Agencies to Target Consumer "Junk Fees"

New Jersey Governor Mikie Sherrill directed executive-branch departments to find and recommend ways to curb "junk fees" in the industries they regulate, including fees charged by financial institutions, mortgage lenders, and consumer-finance companies.

In an Executive Order, Governor Sherrill defined "junk fees" as hidden, surprise, or excessively overpriced charges that give consumers little or no benefit. The Order requires agencies to report by September 14 2026 (i) an assessment of the junk fees common in their sectors and their effect on consumers, (ii) recommended rule proposals to address them, and (iii) measures to make "all-in" pricing and transparent fee disclosure standard. The reviews must also cover state contracts that permit such fees.

Ms. Sherrill cited a 2024 White House analysis estimating that ten categories of junk fees cost Americans $90 billion a year, and the FTC's December 2024 Unfair or Deceptive Fees Rule barring hidden pricing in ticketing and lodging. Ms. Sherrill also pointed to a March 2026 lawsuit by the state attorney general against a subprime lender which allegedly charged New Jersey residents about $27 million in junk fees in 2021 and 2022.