Minnesota Session Laws - 2024, Regular Session

CHAPTER 111--H.F.No. 3438

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.

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

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

Presented to the governor May 17, 2024

Signed by the governor May 20, 2024, 1:47 p.m.