HF 3438

Conference Committee Report - 93rd Legislature (2023 - 2024) Posted on 05/10/2024 06:38pm

CONFERENCE COMMITTEE REPORT ON H. F. No. 3438

A bill for an act
relating to consumer protection; adding the failure to disclose mandatory fees in
advertising as a deceptive trade practice; amending Minnesota Statutes 2022,
sections 325D.43, by adding a subdivision; 325D.44, by adding subdivisions.

May 10, 2024
The Honorable Melissa Hortman
Speaker of the House of Representatives

The Honorable Bobby Joe Champion
President of the Senate

We, the undersigned conferees for H. F. No. 3438 report that we have agreed upon the
items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 3438 be further amended
as follows:

Delete everything after the enacting clause and insert:

"Section 1.

Minnesota Statutes 2022, section 325D.44, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Advertisements, displays, or offers. new text end

new text begin (a) A person engages in a deceptive
trade practice when, in the course of business, vocation, or occupation, the person advertises,
displays, or offers a price for goods or services that does not include all mandatory fees or
surcharges. If the person that disseminates an advertisement is independent of the advertiser,
the person is not liable for the content of the advertisement.
new text end

new text begin (b) For purposes of this subdivision, "mandatory fee" includes but is not limited to a fee
or surcharge that:
new text end

new text begin (1) must be paid in order to purchase the goods or services being advertised;
new text end

new text begin (2) is not reasonably avoidable by the consumer; or
new text end

new text begin (3) a reasonable person would expect to be included in the purchase of the goods or
services being advertised.
new text end

new text begin For the purposes of this subdivision, mandatory fee does not include taxes imposed by a
government entity on the sale, use, purchase, receipt, or delivery of the goods or services.
new text end

new text begin (c) A delivery platform is compliant with this subdivision if the platform satisfies all of
the following requirements:
new text end

new text begin (1) at the point when a consumer views and selects either a vendor or items for purchase,
a delivery platform must display in a clear and conspicuous manner that an additional flat
fee or percentage is charged. The disclosure must include the additional fee or percentage
amount; and
new text end

new text begin (2) after a consumer selects items for purchase, but prior to checkout, a delivery platform
must display a subtotal page that itemizes the price of the menu items and the additional
fee that is included in the total cost.
new text end

new text begin (d) A person may charge a reasonable postage or shipping fee that is actually incurred
by a consumer who has purchased a good that requires shipping.
new text end

new text begin (e) Nothing in this subdivision prevents a person from offering goods or services at a
discounted price from the advertised, displayed, or offered price.
new text end

new text begin (f) A person offering goods or services in an auction where consumers can place bids
on the goods or services and the total cost is indeterminable is compliant with this subdivision
if the person discloses in a clear and conspicuous manner any mandatory fees associated
with the transaction and that the total cost of the goods or services may vary.
new text end

new text begin (g) A person offering services where the total cost of a service is determined by consumer
selections and preferences, or where the total cost of the service relates to distance or time,
is compliant with this subdivision if the person discloses in a clear and conspicuous manner
(1) the factors that determine the total price, (2) any mandatory fees associated with the
transaction, and (3) that the total cost of the services may vary.
new text end

new text begin (h) A food or beverage service establishment, including a hotel, is compliant with this
subdivision if, in every offer or advertisement for the purchase of a good or service that
includes pricing information, the total price of the good or service being offered or advertised
includes a clear and conspicuous disclosure of the percentage of any automatic and mandatory
gratuities charged.
new text end

new text begin (i) A person is compliant with this subdivision if the person providing broadband Internet
access service on its own or as part of a bundle is compliant with the broadband consumer
label requirements under Code of Federal Regulations, title 47, section 8.1(a).
new text end

new text begin (j) A person is compliant with this subdivision if the person is compliant with the pricing
requirements under United States Code, title 47, section 552.
new text end

new text begin (k) This subdivision is enforceable unless preempted by federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, except that this section
is effective June 1, 2025, for industries where the prices are regulated by the Metropolitan
Airports Commission.
new text end

Sec. 2.

Minnesota Statutes 2022, section 325D.44, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin Exemptions. new text end

new text begin Subdivision 1a does not apply to the following:
new text end

new text begin (1) fees authorized by law related to the purchase or lease of a motor vehicle that are
charged by a motor vehicle dealer, as defined by section 168.27, subdivision 1, paragraph
(f);
new text end

new text begin (2) any business or the business' affiliate where either the business or the affiliate is
regulated by the Minnesota Public Utilities Commission; or
new text end

new text begin (3) any fees, surcharges, or other costs associated with settlement services, as defined
in the Real Estate Settlement Procedures Act, United States Code, title 12, section 2602(3).
This clause does not apply to real estate broker commissions and fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, except that this section
is effective June 1, 2025, for industries where the prices are regulated by the Metropolitan
Airports Commission. new text end "

Delete the title and insert:

"A bill for an act
relating to consumer protection; making the failure to disclose mandatory fees in
advertising a deceptive trade practice; providing exemptions; amending Minnesota
Statutes 2022, section 325D.44, by adding subdivisions."

We request the adoption of this report and repassage of the bill.
House Conferees: .
.		.
Emma Greenman		Lucy Rehm
.
Jeff Dotseth
Senate Conferees: .
.		.
Lindsey Port		John Marty
.
Jordan Rasmusson