Tennessee State Senator London Lamar has introduced Senate Bill 1991, known as the “Junk Fee Prevention Act”, which seeks to protect consumers from hidden or unavoidable fees—often called “junk fees”—that inflate the final cost of goods and services. The bill targets industries such as hotels, online bookings, air travel, ticket sales, delivery services, ride-sharing, car rentals, and banking, where businesses sometimes advertise low base prices only to add mandatory surcharges later in the purchasing process. This practice, according to the legislation’s preamble, obscures true costs, hinders fair comparison shopping, harms competition, and disproportionately affects less-informed consumers while enabling tacit collusion among businesses.

Under the proposed law, starting July 1, 2027, businesses would be prohibited from deceptive pricing tactics, including advertising a price without clearly and conspicuously displaying the total price inclusive of all mandatory fees upfront; misleading consumers about subtotals or fee components; displaying fees less prominently (e.g., in smaller font) than the total price; increasing the price after a consumer selects an item; or imposing excessive or unreasonable early termination fees, particularly on automatically renewing contracts. A “mandatory fee” is defined as any unavoidable charge, one a reasonable consumer would expect to be included, or any surcharge required to complete the purchase.

Exemptions apply to government-imposed taxes and delivery fees (if disclosed in advance and based on the chosen method). Businesses could also avoid penalties for violations resulting from bona fide errors, provided they use reasonable prevention procedures and issue refunds within 30 days of notice. Violations would be treated as unfair or deceptive acts under the existing Tennessee Consumer Protection Act of 1977, allowing for civil penalties, restitution, and injunctions.

The bill, which also has a companion House Bill 2233, took effect upon passage provisions starting July 1, 2026, with the Commissioner of Revenue required to launch a public awareness campaign by January 1, 2027. Senator Lamar emphasized that the measure promotes honest pricing, enabling better family budgeting and fairer business practices, stating that Tennesseans deserve transparency before checkout and that companies unwilling to be upfront should not operate in the state. As of mid-February 2026, the bill remains in the legislative process, having been introduced in late January and scheduled for committee consideration.