Are Your Shop’s Fees Clearly Disclosed? What New Jersey’s Crackdown on “Junk Fees” Means for Auto Repair Businesses

by Joshua S. Bauchner, Harrison McAvoy and Grant Petrosyan of Mandelbaum Barrett PC

Most repair professionals have experienced it: a vehicle arrives with what appears to be a straightforward issue, only for additional problems to surface once diagnostics begin or components are removed.

What starts as a relatively simple repair can become a larger job, resulting in charges that were not anticipated when the vehicle first entered the shop.

Those situations are a normal part of the automotive repair business. The question is not whether additional charges may arise, but whether customers understand those charges and how they were communicated throughout the repair process.

That issue is receiving increased attention in New Jersey following a consumer protection initiative announced by Governor Mikie Sherrill and New Jersey Attorney General Jennifer Davenport. The initiative is aimed at addressing so-called “junk fees” and other pricing practices that officials believe may leave consumers unaware of the true cost of a product or service.

Although much of the public discussion has focused on industries such as hotels, ticket sales and subscription services, the broader message applies to any business that serves consumers. New Jersey’s recent actions reflect a growing emphasis on pricing transparency and on whether consumers are given sufficient information to understand and approve charges before they are incurred.

A Growing Focus on Pricing Transparency

For automotive repair facilities, this does not mean that common charges such as diagnostic fees, shop supply fees, disposal fees or additional labor costs are inherently problematic. Rather, the concern is whether those charges are clearly disclosed and presented in a way that consumers can readily understand.

The Attorney General’s guidance takes a broad view of pricing practices that may warrant scrutiny. The focus is not limited to hidden fees. Officials have also signaled concern with charges that may be confusing, misleading or inconsistent with what a consumer reasonably expects to pay.

Ultimately, the issue is less about the existence of a fee and more about the quality of the disclosure surrounding it.

From Estimate to Invoice

Automotive repairs present unique challenges because the full scope of work is often unknown at the outset. As a result, repair facilities may want to review how pricing information is communicated throughout the customer experience.

The estimate is where expectations are first established. Anticipated labor charges, parts costs, diagnostic work and other fees should be clearly identified whenever possible. If costs may change because additional issues could be discovered during the repair process, that possibility should be explained up front.

Repair authorizations deserve similar attention. Customers should understand how supplemental work will be handled and when approval will be required before additional repairs are performed.

When additional work becomes necessary, documenting discussions and confirming approvals in writing can help ensure everyone remains on the same page. By the time a customer receives a final invoice, the charges should align with the conversations and approvals that occurred throughout the repair process.

Looking Beyond the Repair Order

Pricing transparency is not limited to estimates and invoices.

Shops may also wish to review advertisements, service specials, website content, maintenance programs and other marketing materials to ensure pricing information is presented clearly and accurately. The Attorney General’s guidance suggests that pricing practices may be evaluated through the entire customer experience, not just at the point of sale.

A Good Time for a Review

New Jersey’s latest enforcement effort serves as a reminder that clear communication remains one of the most effective ways to build customer trust and reduce disputes.

For repair shops, dealerships and collision centers, now may be an appropriate time to review estimates, repair authorizations, customer communications, advertising materials and invoicing practices. The goal is not to eliminate legitimate charges, but to help ensure customers understand what they are paying for and why.

In an industry where reputation and customer relationships matter, transparency remains one of the most valuable tools a business can have.

Joshua S. Bauchner, Harrison McAvoy and Grant Petrosyan are partners at Mandelbaum Barrett PC.

Want more? Check out the October 2026 issue of New Jersey Automotive!