HF 2823

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/09/2023 12:49pm

A bill for an act
relating to consumer protection; modifying provisions governing deceptive trade
practices and consumer fraud; amending Minnesota Statutes 2022, sections
325D.44, subdivisions 1, 2; 325F.69, subdivision 1, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 325D.44, subdivision 1, is amended to read:

Subdivision 1.

Acts constituting.

A person engages in a deceptive trade practice when,
in the course of business, vocation, or occupation, the person:

(1) passes off goods or services as those of another;

(2) causes likelihood of confusion or of misunderstanding as to the source, sponsorship,
approval, or certification of goods or services;

(3) causes likelihood of confusion or of misunderstanding as to affiliation, connection,
or association with, or certification by, another;

(4) uses deceptive representations or designations of geographic origin in connection
with goods or services;

(5) represents that goods or services have sponsorship, approval, characteristics,
ingredients, uses, benefits, or quantities that they do not have or that a person has a
sponsorship, approval, status, affiliation, or connection that the person does not have;

(6) represents that goods are original or new if they are deteriorated, altered,
reconditioned, reclaimed, used, or secondhand;

(7) represents that goods or services are of a particular standard, quality, or grade, or
that goods are of a particular style or model, if they are of another;

(8) disparages the goods, services, or business of another by false or misleading
representation of fact;

(9) advertises goods or services with intent not to sell them as advertised;

(10) advertises goods or services with intent not to supply reasonably expectable public
demand, unless the advertisement discloses a limitation of quantity;

(11) makes false or misleading statements of fact concerning the reasons for, existence
of, or amounts of price reductions;

(12) in attempting to collect delinquent accounts, implies or suggests that health care
services will be withheld in an emergency situation; deleted text begin or
deleted text end

new text begin (13) engages in (i) unfair methods of competition, or (ii) unfair or conscionable acts or
practices; or
new text end

deleted text begin (13) deleted text end new text begin (14) new text end engages in any other conduct which similarly creates a likelihood of confusion
or of misunderstanding.

Sec. 2.

Minnesota Statutes 2022, section 325D.44, subdivision 2, is amended to read:

Subd. 2.

Proof.

new text begin (a) new text end In order to prevail in an action under sections 325D.43 to 325D.48,
a complainant need not prove competition between the parties or actual confusion or
misunderstanding.

new text begin (b) For purposes of subdivision 1, clause (13), the standard of proof provided under
section 325F.69, subdivision 7, applies.
new text end

Sec. 3.

Minnesota Statutes 2022, section 325F.69, subdivision 1, is amended to read:

Subdivision 1.

Fraud, misrepresentation, deceptive new text begin or unfair new text end practices.

The act, use,
or employment by any person of any fraud, new text begin unfair or unconscionable practice, new text end false pretense,
false promise, misrepresentation, misleading statement or deceptive practice, with the intent
that others rely thereon in connection with the sale of any merchandise, whether or not any
person has in fact been misled, deceived, or damaged thereby, is enjoinable as provided in
section 325F.70.

Sec. 4.

Minnesota Statutes 2022, section 325F.69, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Unfair or unconscionable acts or practices; standard of proof. new text end

new text begin For purposes
of this section, an unfair method of competition or an unfair or unconscionable act or practice
is any method of competition, act, or practice that: (1) offends public policy as established
by the statutes, rules, or common law of Minnesota; (2) is immoral, unethical, oppressive,
or unscrupulous; or (3) is substantially injurious to consumers, competitors, or other
businesspersons.
new text end