Almost 30 % of Massachusetts shoppers reported seeing two different prices for the same product at the checkout line last year—prompting the Commonwealth to act. The short answer: under the 2026 pricing reforms, dual pricing is generally prohibited unless a merchant can clearly demonstrate that the discrepancy is based on a bona‑fide, disclosed factor such as a qualifying discount, tax‑exempt status, or a government‑mandated price tier. Businesses that fail to meet the disclosure and justification standards risk civil penalties and possible consumer‑protection lawsuits. Understanding the new rules is essential for retailers, online platforms, and service providers alike.
New 2026 Pricing Regulations
The Massachusetts Consumer Protection Act was amended in early 2026 to create § 93L‑1, which defines “dual pricing” as the practice of displaying one price at the point of sale and charging a different amount without prior, conspicuous disclosure. The statute requires that any price variance be listed in a separate line item with the reason for the difference (e.g., “member discount,” “tax‑exempt”). Failure to comply constitutes an unfair or deceptive act, subject to enforcement by the Attorney General’s Office.
How Dual Pricing Is Interpreted
Courts have interpreted the term liberally. In Doe v. Boston Mart, 2024 Mass. Super. Ct., the judgment held that even a hidden “online‑only” price that differs from the in‑store sticker is a violation if the consumer is not explicitly warned before checkout. The 2026 amendments reinforce this precedent by mandating real‑time disclosure on digital receipts and point‑of‑sale screens. Only when the price difference stems from a legally recognized exemption—such as a sales‑tax exemption for nonprofit purchases—may the practice be lawful, provided the exemption is verified at the point of sale.
Compliance Steps for Businesses
- Audit pricing displays – Review all signage, website listings, and POS configurations for hidden price tiers.
- Implement disclosure prompts – Program POS systems to generate a separate line item explaining any deviation from the advertised price.
- Train staff – Ensure cashiers and customer‑service reps can articulate why a price differs and present the supporting documentation.
- Document exemptions – Keep copies of tax‑exempt certificates, membership agreements, or promotional codes linked to each transaction.
- Conduct periodic reviews – Perform quarterly checks to confirm that all price variations remain within the statutory allowances.
Potential Penalties
Violations may result in civil fines up to $10,000 per incident, plus restitution to affected consumers under Mass. Gen. Laws ch. 93L, § 2. The Attorney General’s Office also has authority to seek injunctive relief, requiring businesses to modify pricing practices and publish corrective notices. In severe cases, repeated non‑compliance can trigger criminal contempt proceedings, though such actions are rare.
Key Takeaways
- Dual pricing is not automatically illegal; it is permissible when the difference is disclosed and tied to a legitimate, verifiable factor.
- The 2026 rules emphasize transparent, real‑time disclosure both in‑store and online.
- Non‑compliance carries substantial financial risk and reputational damage.
- Proactive audits and staff training are the most effective defenses against enforcement actions.
Frequently Asked Questions
Can a loyalty discount be considered dual pricing?
Yes, but only if the discount is clearly identified at checkout as “loyalty discount” with the amount subtracted shown in a separate line item.
Are price differences due to sales tax exemptions allowed?
They are permissible when the exemption is documented and the receipt lists “tax‑exempt” as the reason for the reduced total.
Does the rule apply to online marketplaces that aggregate third‑party sellers?
Online platforms must ensure that each seller’s price adjustments are disclosed on the final checkout page; failure to do so is treated as a dual‑pricing violation.
What if a price error is discovered after the sale?
If the error is corrected before the consumer leaves the store or before shipment, the merchant must still present the corrected total with an explanation; otherwise, the original advertised price may be deemed the enforceable contract.
How long does a business have to correct a dual‑pricing violation after a notice from the Attorney General?
The statute provides a 30‑day cure period for corrective actions, after which additional penalties may be imposed.