Illinois Adopts a New Junk Fee Ban Act

Key Takeaways

• Illinois’ General Assembly passed the state’s new Junk Fee Ban Act on May 21, 2026. The legislation is headed to the Governor’s office for signature. Governor Pritzker has expressed support for the new law and is expected to sign.
• The Junk Fee Ban Act generally requires businesses to disclose all mandatory fees upfront, although it includes some exceptions for banks, credit unions, and businesses subject to federal disclosure laws. It also includes modified compliance requirements for retail mercantile establishments and restaurants.
• The State Attorney General will enforce the law once it becomes effective and will be authorized to seek civil penalties of up to $50,000 per violation.

On May 21, 2026, Illinois’ Junk Fee Ban Act (SB1486) passed the State’s General Assembly, clearing the Senate after previously passing the House. The act now heads to Governor Pritzker, who has expressed his support for the new law.

Why Illinois Adopted a State Junk Fee and Pricing Transparency Law

Illinois is the latest in a wave of states to enact its own pricing transparency legislation. This trend began after the Federal Trade Commission (“FTC”) tried and failed to enact a sweeping, nationwide junk fee ban. Legal challenges and public pushback resulted in the FTC’s ban being far more limited than originally proposed. The final version of the FTC’s rule only required up-front disclosure of all mandatory pricing components for two industries: short-term lodging and ticketing platforms.

In the wake of the truncated rule, state legislatures stepped in to fill the gap. California led the way with its Honest Pricing Law, effective July 1, 2024. Since then, Minnesota, Oregon, Virginia, and Massachusetts have followed with their own pricing transparency laws.

What the Junk Fee Ban Act Requires Businesses to Disclose

Illinois’ Junk Fee Ban Act takes a distinctive approach to pricing transparency. Like similar laws, it makes it an unlawful practice for any person to “advertise, display, or offer a price for a good or service that does not include all mandatory fees or charges” other than taxes, government-imposed fees, or shipping charges. Where the total price cannot be known at the time of the offer due to factors outside the seller’s control — such as customer selections or preferences relating to time or distance — a seller may still comply by clearly and conspicuously displaying (1) factors that determine the total price; (2) mandatory fees or charges associated with the transaction; and (3) that the total price of services may vary.

Exemptions from Illinois Law

The new law includes several exemptions. Banks and credit unions are exempt, as are persons and entities required to comply with disclosure requirements under a laundry list of federal laws — including the Truth in Savings Act, Electronic Fund Transfer Act, Federal Reserve Act, Truth in Lending Act, Real Estate Settlement Procedures Act, and Motor Vehicle Retail Installment Sales Act, among others.

Perhaps the most interesting exemptions apply to retail mercantile establishments and food service establishments. Neither industry segment is “required to provide the total price within the display price.” Instead, both may post additional required fees later in the sales process, but before purchase is final, through statutorily permitted channels such as digital in-store monitors, digital communications, or membership and loyalty programs. These exceptions appear to address the practical challenge that brick-and-mortar establishments face in updating hundreds or thousands of individual price tags.

Illinois Attorney General Enforcement and CFDBPA Penalties

The State Attorney General (“AG”) is authorized to enforce the Junk Fee Ban Act. A new section will also be added to Illinois’ CFDBPA, making a violation of the Junk Fee Ban Act an unlawful practice under the CFDBPA. This gives the AG access to the CFDBPA’s remedies, including the assessment of civil penalties of up to $50,000 per violation.

Interestingly, while the CFDBPA allows aggrieved consumers to bring a private right of action against defendants, the Junk Fee Ban Act will not, marking a clear departure from other pricing transparency regimes, like California’s.

Effective Date

The act does not specify an effective date. Under normal Illinois procedure, if fully adopted before June 30, 2026, it should become effective on January 1, 2027. However, the act still awaits Governor Pritzker’s signature, and it is unclear when he will sign, making the precise effective date uncertain.

What Multi-State Businesses Should Do Now to Address Compliance

Illinois’ Junk Fee Ban Act represents a significant addition to the growing patchwork of state pricing transparency laws. Its tailored exemptions for retail mercantile and food service establishments, combined with its decision to forgo a private right of action, distinguish it from more aggressive regimes like California’s, while the potential for steep civil penalties still make the consequences of non-compliance serious. As more states continue to adopt their own pricing transparency regimes, companies with a multistate footprint will need to track and reconcile an increasingly complex web of disclosure obligations.

AGG will continue to track and update pricing transparency laws. For further guidance on related matters, please contact AGG Payment Systems & Fintech industry team co-chair Theresa Kananen.