Businesses already face up to $10,000 penalties for hidden fees. Now the governor wants agencies to find what else needs fixing.
New Jersey businesses already face civil penalties up to $10,000 for hiding fees from customers, and Attorney General Jennifer Davenport is just getting started. Davenport and Acting Division of Consumer Affairs Director Jeremy Hollander issued a 10-page enforcement statement on Monday telling businesses that certain junk fee practices may already violate the Consumer Fraud Act.
Governor Mikie Sherrill signed Executive Order 19 the same day, directing every Executive Branch department to review the industries they regulate, identify junk fees, analyze the impact and report recommendations by September 14 on new rules, transparency requirements and legislative measures.
Sherrill said Monday that buyers deserve to know the full cost before they reach checkoutThe order requires agencies to assess prevalent junk fees, propose rulemaking to curtail or eliminate them, and recommend measures to ensure all-in pricing. The initiative targets charges that consumers do not see coming, that carry inflated price tags or that add no real value to the transaction. September 14 is the deadline for agencies to report back to the governor on what comes next.
Davenport opened the sequence on March 16 when she joined a bipartisan coalition of 12 other state attorneys general in suing OneMain Financial. OneMain runs locations in the state and sold roughly $27 million in add-ons there between 2021 and 2022. Borrowers paid an average of $826 for these products.
The lawsuit claims OneMain packed loans with credit insurance and membership programs customers never wanted. It also claims the lender rushed them through closings and would not stop pressuring them until they declined three times. The lawsuit seeks refunds for affected borrowers, penalties for violating state laws and for disgorgement of profits.
"New Jerseyans in need of financial assistance came to OneMain for help, but they were sold expensive, inflated loan products they didn't want and couldn't afford," Davenport said.
OneMain has defended its practices by pointing to a 2023 settlement with the Consumer Financial Protection Bureau. That agreement addressed similar conduct and imposed $10 million in restitution plus a $10 million civil penalty. OneMain called the states' allegations 'simply untrue' and said the lawsuit attempts to re-litigate issues that federal regulators have already resolved.
Statewide Order Builds on Months of Enforcement
In April, Davenport led a bipartisan coalition of 26 other state attorneys general to push the Federal Trade Commission for federal rental fee rules. That same month the Division of Consumer Affairs told landlords the state would enforce a new $50 limit on rental application fees starting May 1.
The following month, the division warned hotels and short-term rental operators to drop deceptive pricing before World Cup tourists arrived. The May 21 guidance reminded lodging providers that bait-and-switch pricing and hidden mandatory fees violate the New Jersey Consumer Fraud Act and, according to the agency, the Federal Trade Commission's Unfair or Deceptive Fees Rule.
Old Law Meets New Fees
New Jersey is using existing law rather than passing a specific statute to ban junk fees. Davenport and Hollander released their enforcement statement Monday arguing that the Consumer Fraud Act already covers many junk fee practices. Their statement identifies four common categories that may violate the act: surprise checkout charges, app designs that hide the real total, misrepresented fees and inflated surcharges.
"We urge businesses to review the Division's Enforcement Statement and correct any practices that violate the CFA before facing enforcement action," Hollander said.
First-time offenders are liable for potential civil penalties of up to $10,000 per violation. Repeat offenses draw up to $20,000.
Legislature Pursuing its Own Surcharge Ban
The legislature moved before Sherrill signed the order. Assemblywoman Shanique Speight and Assembly Consumer Affairs Committee Chair William Sampson had already moved a debit-card surcharge ban through committee on June 4. The bill would prohibit sellers from imposing surcharges on debit card and gift card transactions and would require sellers to disclose that debit card and gift card surcharges are prohibited. Senators M. Teresa Ruiz and James Beach sponsor the Senate companion, S4107. The bill cleared committee 11 days before the executive order.
The New Jersey Election Law Enforcement Commission announced on June 17 that it will hold a hearing on July 21 to ask whether campaign finance compliance fees, reporting fees, disclosure fees and payment processing charges imposed on candidates and committees fit the governor's definition of junk fees. ELEC is reviewing whether its own fees warrant examination under the order's principles.
Neither the New Jersey Chamber of Commerce nor the New Jersey Business and Industry Association had posted public statements on the order by June 18. That silence stands out because NJBIA had testified against a separate surveillance-pricing ban in March but stayed silent on the junk fee order.
Neither the New Jersey Chamber of Commerce nor the New Jersey Business and Industry Association had posted public statements on the order by June 18. NJBIA had testified against a separate surveillance-pricing ban in March but offered no comment on the junk fee order.
The governor's office launched a "Fight the Fees" campaign with a complaint portal, handouts and a video. Davenport said Monday that "working families are tired of being exploited by businesses hiding the true cost of goods and services," and the state will not hesitate to act when it sees junk fees. Division of Consumer Affairs staff field complaints through the online system. Residents who encounter surprise charges or deceptive pricing can file grievances at the OAG website.
Davenport has already used the consumer fraud law against OneMain. The enforcement statement is already in force. September 14 is the deadline for agencies to report back, but the crackdown is already underway.
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Sources
• Governor's Office, State of New Jersey, 'Governor Sherrill and Attorney General Davenport Launch Initiative to Crack Down on Junk Fees in New Jersey' (June 15, 2026)
• New Jersey Election Law Enforcement Commission, 'Notice to Regulated Persons Regarding Executive Order No. 19' (June 17, 2026)
• New Jersey Legislature, Bill No. A-5110, 'Prohibits Seller Providing Service or Selling Goods from Charging Surcharge to Customer Using Debit Card or Gift Card' (June 4, 2026)
• New Jersey Legislature, Bill No. S-4107, 'Prohibits Seller Providing Service or Selling Goods from Charging Surcharge to Customer Using Debit Card or Gift Card' (May 4, 2026)
• New Jersey Office of the Attorney General, 'AG Davenport, Division of Consumer Affairs Warn Hotels and Short-Term Rental Providers Against Junk Fees Ahead of 2026 FIFA World Cup' (May 21, 2026)
• New Jersey Office of the Attorney General, 'AG Davenport Sues OneMain Financial for Packing Loans With Add-Ons' (March 16, 2026)
• New Jersey Office of the Attorney General, 'Attorney General Davenport and Division of Consumer Affairs Issue Enforcement Statement on Junk Fees' (June 15, 2026)
• New Jersey Office of the Attorney General, 'Attorney General Davenport Leads Bipartisan Multistate Call for Federal Action on Rental Housing Fee Abuses, Puts New Jersey Landlords on Notice of State's Application Fee Cap' (April 13, 2026)
• New Jersey Office of the Attorney General, Enforcement Statement on Junk Fees (June 15, 2026)
• State of New Jersey, Executive Order No. 19 (June 15, 2026)
• Jon Hill, 'NJ Launches Push To Crack Down on Consumer Junk Fees,' Law360 (June 16, 2026)
• 'N.J. Sues Personal Loan Firm for Exorbitant Add-On Fees,' New Jersey Globe (March 17, 2026)
• 'New Jersey Attorney General Sues OneMain Financial Over Alleged Hidden Loan Fees,' WRNJ Radio (March 16, 2026)
• 'New Jersey Launches Effort To Crack Down on Hidden Junk Fees,' TapInto Madison (June 16, 2026)
• 'New Jersey Launches Major Crackdown on Deceptive Junk Fees,' News12 New Jersey (June 15, 2026)
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• 'OneMain Financial Sued by 13 Attorneys General Over Hidden Loan Add-Ons,' PBS NewsHour (March 16, 2026)
• Al-Tariq Witcher, Fair Share Housing, statement via Governor's Office, State of New Jersey (June 15, 2026)
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