SF 2025

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/07/2025 09:20 a.m.

A bill for an act
relating to consumer protection; establishing the Fair Competition Act; regulating
monopsony power; prohibiting certain price increases; prohibiting price
discrimination; providing enforcement authority; modifying and establishing civil
and criminal penalties; amending Minnesota Statutes 2024, sections 325D.50, by
adding subdivisions; 325D.52; 325D.53, subdivision 1, by adding a subdivision;
325D.54; 325D.56, subdivisions 1, 2; 325D.64, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapters 325E; 325F; repealing Minnesota
Statutes 2024, section 325D.03.

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

Section 1.

Minnesota Statutes 2024, section 325D.50, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Monopoly power. new text end

new text begin "Monopoly power" means the power to control prices or
exclude competition. A firm has monopoly power if the firm is able to profitably raise prices
substantially above the competitive level for a significant period of time. A firm has
monopoly power if the firm is able to exclude competitors.
new text end

Sec. 2.

Minnesota Statutes 2024, section 325D.50, is amended by adding a subdivision to
read:

new text begin Subd. 4b. new text end

new text begin Monopsony. new text end

new text begin "Monopsony" means a market condition where only one buyer
exists.
new text end

Sec. 3.

Minnesota Statutes 2024, section 325D.50, is amended by adding a subdivision to
read:

new text begin Subd. 4c. new text end

new text begin Monopsony power. new text end

new text begin "Monopsony power" means an individual buyer is able
to influence demand and price for a good or service.
new text end

Sec. 4.

Minnesota Statutes 2024, section 325D.52, is amended to read:

325D.52 ESTABLISHMENT, MAINTENANCE, OR USE OF MONOPOLY
POWER.

The establishment, maintenance, or use of, or any attempt to establish, maintain, or use
monopoly new text begin or monopsony new text end power over any part of trade or commerce by any person or persons
for the purpose of affecting competition or controlling, fixing, or maintaining prices is
unlawful. new text begin Evidence of procompetitive effects is not a defense to using monopoly or
monopsony power to affect competition or to control, fix, or maintain prices, and does not
offset or cure competitive harm.
new text end

Sec. 5.

Minnesota Statutes 2024, section 325D.53, subdivision 1, is amended to read:

Subdivision 1.

Price fixing, production control, allocation of markets, collusive
bidding, and concerted refusals to deal.

Without limiting section 325D.51, the following
shall be deemed to restrain trade or commerce unreasonably and are unlawful:

(1) A contract, combination, or conspiracy deleted text begin between two or more persons deleted text end new text begin by a person new text end in
competition:

(a) for the purpose or with the effect of affecting, fixing, controlling or maintaining the
market price, rate, or fee of any commodity or service;

(b) affecting, fixing, controlling, maintaining, limiting, or discontinuing the production,
manufacture, mining, sale or supply of any commodity, or the sale or supply of any service,
for the purpose or with the effect of affecting, fixing, controlling, or maintaining the market
price, rate, or fee of the commodity or service; or

(c) allocating or dividing customers or markets, functional or geographical, for any
commodity or service.

(2) A contract, combination, or conspiracy deleted text begin between two or more persons deleted text end new text begin by a person new text end
whereby, in the letting of any public contract, (a) the price quotation of any bid is fixed or
controlled, (b) one or more persons refrains from the submission of a bid, or (c) competition
is in any other manner restrained.

(3) A contract, combination, or conspiracy deleted text begin between two or more persons deleted text end new text begin by a person new text end
refusing to deal with another person, except a refusal to deal by associations, trading boards,
or exchanges when predicated upon a failure to comply with rules of membership.

Sec. 6.

Minnesota Statutes 2024, section 325D.53, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Aiding and abetting. new text end

new text begin It is unlawful to facilitate or aid and abet another person
in violating this section. Each separate instance of facilitating or aiding and abetting another
person in violating this section is a separate violation of this section.
new text end

Sec. 7.

Minnesota Statutes 2024, section 325D.54, is amended to read:

325D.54 SCOPE OF ACT.

Sections 325D.49 to 325D.66 apply to:

deleted text begin (a) deleted text end new text begin (1) new text end any contract, combination, or conspiracy when any part thereof was created,
formed, or entered into in this state; and

deleted text begin (b) deleted text end new text begin (2) new text end any contract, combination, or conspiracy, wherever created, formed, or entered
into; any establishment, maintenance, or use of monopoly power; and any attempt to establish,
maintain, or use monopoly new text begin or monopsony new text end power; whenever any of the foregoing affects
the trade or commerce of this state.

Sec. 8.

Minnesota Statutes 2024, section 325D.56, subdivision 1, is amended to read:

Subdivision 1.

Civil penalties.

deleted text begin Any deleted text end new text begin A new text end person who is found to have violated sections
325D.49 to 325D.66 deleted text begin , shall be deleted text end new text begin is new text end subject to a civil penalty of new text begin : (1) new text end not more than deleted text begin $50,000.
Any deleted text end new text begin $100,000 per violation for an individual; (2) not more than $500,000 for a corporation
with annual revenue below $5,000,000; (3) not more than $1,000,000 for a corporation with
annual revenue between $5,000,000 and $10,000,000; and (4) up to $5,000,000 per violation
for a corporation with annual revenue in excess of $10,000,000. A new text end person new text begin or corporation new text end
who fails to comply with a final judgment or decree rendered by a court of this state issued
for a violation of sections 325D.49 to 325D.66, shall be subject to a civil penalty of not
more than deleted text begin $100,000 deleted text end new text begin $250,000 new text end .

Sec. 9.

Minnesota Statutes 2024, section 325D.56, subdivision 2, is amended to read:

Subd. 2.

Criminal penalty.

deleted text begin Any deleted text end new text begin A new text end person who is found to have willfully committed
any of the acts enumerated in section 325D.53 deleted text begin shall be deleted text end new text begin is new text end guilty of a felony and subject to new text begin
(1) new text end a fine of not more than $50,000 new text begin per violation new text end or new text begin the actual damages imposed by the
conduct, (2) new text end imprisonment in the state penitentiary for not more than seven years, or new text begin (3) new text end
both new text begin penalties under clauses (1) and (2) new text end .

Sec. 10.

Minnesota Statutes 2024, section 325D.64, subdivision 1, is amended to read:

Subdivision 1.

Interpretation and effect.

An action under sections 325D.49 to 325D.66,
shall be forever barred unless commenced within four years of the date upon which the
cause of action arose. No cause of action barred under existing law on June 8, 1971 shall
be revived by sections 325D.49 to 325D.66. For the purpose of this section, a cause of action
deleted text begin for a continuing violation is deemed to arise at any time during the period of the violation. deleted text end new text begin
accrues:
new text end

new text begin (1) when the circumstances giving rise to the cause of action are discovered or should
have been discovered in the exercise of reasonable diligence; or
new text end

new text begin (2) on the date that the last in a series of acts or practices in violation of sections 325D.49
to 325D.66 occurs.
new text end

Sec. 11.

new text begin [325E.81] UNCONSCIONABLY EXCESSIVE PRICES PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision
have the meanings given.
new text end

new text begin (b) "Person" means an individual, firm partnership, incorporated or unincorporated
association, or any other legal or commercial entity.
new text end

new text begin (c) "Unconscionably excessive" means:
new text end

new text begin (1) the amount charged is more than ten percent greater than the average price at which
the same or similar good or service was obtainable in the affected area during the last 30
days; or
new text end

new text begin (2) the amount charged is more than ten percent greater than the average price at which
the same or similar good or service is readily obtainable by other purchasers in the subject
trade area.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition; exception. new text end

new text begin (a) A person is prohibited from selling or offering to
sell a consumer good or service for an amount that represents an unconscionably excessive
price. The prohibition under this section applies to all parties in the chain of distribution,
including but not limited to a manufacturer, supplier, wholesaler, distributor, or retail seller
of goods or services.
new text end

new text begin (b) A price increase is not unlawful if the person increasing the price proves the price
increase (1) is substantially attributable to significant additional costs outside the control
of the person, and (2) does not increase the person's profit.
new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin The attorney general may investigate and bring an enforcement
action to remediate and enjoin any alleged violation of this section. The attorney general's
authority under this section includes but is not limited to the authority provided under section
8.31, except that a civil penalty imposed under section 8.31 must not exceed $10,000 per
violative sale or transaction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

new text begin [325F.035] COMMERCIAL TRANSACTIONS; PRICE DISCRIMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Price discrimination prohibited. new text end

new text begin (a) A person engaged in commerce,
in the course of the commerce, is prohibited from directly or indirectly discriminating in
price between different purchasers of commodities of like grade and quality if:
new text end

new text begin (1) either or any of the purchases involved in the discrimination are in commerce;
new text end

new text begin (2) the commodities are sold for use, consumption, or resale within Minnesota; and
new text end

new text begin (3) the effect of the discrimination lessens competition or tends to:
new text end

new text begin (i) create a monopoly or monopsony in any line of commerce; or
new text end

new text begin (ii) injure, destroy, or prevent competition with:
new text end

new text begin (A) a person who grants or knowingly receives the benefit of the discrimination; or
new text end

new text begin (B) customers of a person who grants or knowingly receives the benefit of the
discrimination.
new text end

new text begin (b) Nothing in this subdivision prevents:
new text end

new text begin (1) differentials that only make due allowance for differences in the cost to manufacture,
sell, or deliver that result from the differing methods or quantities that commodities are sold
or delivered to purchasers;
new text end

new text begin (2) a person engaged in selling goods, wares, or merchandise in commerce from selecting
customers in bona fide transactions and not in restraint of trade; or
new text end

new text begin (3) price changes from time to time in response to changing conditions affecting the
market for or the marketability of the goods concerned, including but not limited to:
new text end

new text begin (i) actual or imminent deterioration of perishable goods;
new text end

new text begin (ii) obsolescence of seasonal goods;
new text end

new text begin (iii) distress sales under court process; or
new text end

new text begin (iv) sales in good faith to discontinue business in the goods concerned.
new text end

new text begin Subd. 2. new text end

new text begin Prima facie case; rebuttal. new text end

new text begin (a) Upon proof being made at any hearing on a
complaint made under subdivision 1 that price discrimination has occurred, the burden of
rebutting the prima facie case made by showing justification is upon the person charged
with violating this section. Unless justification is affirmatively demonstrated, an order
terminating the discrimination may be issued.
new text end

new text begin (b) Nothing in this subdivision prevents a seller rebutting the prima facie case made by
showing that the seller's lower price to any purchaser or purchasers was made in good faith
to meet a competitor's equally low price.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 325D.03, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-01319

325D.03 DISCRIMINATION UNLAWFUL.

Any person, partnership, firm, or corporation, foreign or domestic, doing business in the state and engaged in the production, manufacture, or distribution of any printed or mimeograph matter, commodity, article, goods, wares, or merchandise in general use or consumption, who for the purpose or with the effect of injuring a competitor or destroying competition, shall discriminate between different sections, communities, or cities of this state by selling or furnishing such commodity, article, goods, wares or merchandise at a lower price, or rate in one section, community, or city, or any portion thereof, than such person, firm, or corporation, foreign or domestic, charges for such commodity, article, goods, wares, or merchandise in another section, community, or city, or any portion thereof, after making allowance for difference, if any, in the grade, quality, or quantity after equalizing the distance from the point of production, manufacture, or distribution and freight rates therefrom, shall be guilty of unfair discrimination; provided, that sections 325D.01 to 325D.07 shall not prevent any person, firm, or corporation from, in good faith, meeting local competition within any one section, community, or city. The inhibition hereof against locality discrimination shall embrace any scheme of special rebates, collateral contracts, or any device of any nature whereby such discrimination is, in substance or fact, effected in violation of the spirit and intent of sections 325D.01 to 325D.07.