SF 4380
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/18/2026 09:21 a.m.
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A bill for an act
relating to consumer protection; requiring certain online platforms to provide
information pertaining to algorithm use; requiring design transparency and user
choice; providing civil penalties; authorizing rulemaking; proposing coding for
new law in Minnesota Statutes, chapter 325M.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[325M.35] ONLINE PLATFORM METRICS.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Accessible user interface" means an interface that requires minimal user interaction,
including but not limited to clicks, taps, or similar actions, for a user to input data, make a
choice, or take an action while using a covered online platform.
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(c) "Algorithmic recommender system" means a computational process used to determine
the selection, order, rank, relative prioritization, or relative prominence of items provided
to a user on an online platform, including search results, ranking, recommendations, display,
or another method of automated selection.
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(d) "Covered minor" means a user who a covered business knows or should know, based
on knowledge fairly implied under objective circumstances, is a minor.
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(e) "Covered business" means a sole proprietorship, limited liability company,
corporation, association, or other legal entity that owns, operates, controls, or provides a
covered online platform. Covered business includes a joint venture or partnership composed
of businesses in which each has at least a 40 percent interest in the joint venture or
partnership. Covered business does not include a federal, state, Tribal, or local government
entity in the ordinary course of operations.
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(f) "Covered online platform" means an online platform that:
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(1) conducts business in Minnesota; and
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(2) uses one or more algorithmic recommender systems to determine the selection, order,
rank, or relative prominence of items provided to a user in whole or in part based on the
user's personal data, unless the data is:
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(i) based on user-selected settings or technical information concerning the user's device;
or
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(ii) a search query, provided the query is not associated with the user in the online
platform's data storage and is only processed to convey items in direct response to the user's
search.
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(g) "Default" means a preselected option adopted by a covered online platform for a
specific service, product, or feature.
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(h) "Engagement" means a user interaction with items on a covered online platform.
Engagement includes clicks; taps; comments; reshares; watching; dwelling; indications of
approval or disapproval, including but not limited to likes, dislikes, upvotes, or downvotes;
or any other form of interaction.
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(i) "Engagement data" means information that a covered online platform collects about
engagement on the platform. Engagement data does not include user survey data.
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(j) "High-value data" means user-provided data or predictions from user survey data
made by a covered online platform.
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(k) "Holdout group" means a group of covered online platform users that are exempt
from the application of algorithmic recommender system design changes.
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(l) "Item" means media eligible for display by a recommender system. Item includes
but is not limited to an individual post, account, group, page, channel, product, advertisement,
text, image, video, or audio file.
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(m) "Long-term holdout assessment" means a process in which a covered online platform
maintains a holdout group for a duration of at least 12 months.
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(n) "Long-term user value" means outcomes that align with an individual user's deliberate
and forward-looking preferences or aspirations, as expressed to a covered online platform
through high-value data.
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(o) "Long-term user value metrics" means the metrics a covered online platform uses
to measure long-term user value.
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(p) "Online platform" means a website, online service, online application, or mobile
application.
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(q) "Personal data" means information, including derived data and unique identifiers,
that is linked or reasonably linkable, alone or in combination with other information, to an
identified or identifiable individual or a device that identifies or is linked or reasonably
linkable to an individual.
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(r) "User" means a user of a covered online platform who is located in Minnesota. User
does not include a covered online platform operator or a person acting as an agent of the
covered online platform operator.
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(s) "User-provided data" means the following categories of information collected by a
covered online platform:
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(1) information expressly and explicitly provided by the user, including user preferences,
settings, search queries, prompts, and any other information expressly and explicitly provided
by the user that is not engagement data;
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(2) user survey data;
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(3) indicators or ratings expressly and explicitly selected by the user that are not
engagement data; or
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(4) other categories of data or more specific definitions of the data in clauses (1) to (3),
as may be defined by the commissioner of commerce by rule.
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(t) "User survey data" means a user response to questions that a covered online platform
or a third party acting on the covered online platform's behalf poses to users.
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(u) "Weight" means the individual numeric setting that controls the output of a
recommender system at a high level across a covered online platform's user base, including
the relative contributions of different factors to an item's ranking.
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new text begin Subd. 2. new text end
new text begin Applicability. new text end
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(a) The requirements under this section are in addition to and
do not limit or restrict the application of other Minnesota law, including statutes, regulations,
and common law. If this section conflicts with one or more other laws, the law that provides
the greatest protection to the consumer applies.
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(b) Nothing in this section should be construed in a manner inconsistent with the First
Amendment of the United States Constitution or United States Code, title 47, section 230.
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new text begin Subd. 3. new text end
new text begin Design transparency. new text end
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(a) A covered online platform that deploys an algorithmic
recommender system must prominently and conspicuously provide on the covered online
platform's website, service, or application:
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(1) a list of each algorithmic recommender system the covered online platform uses;
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(2) a description of each input to each algorithmic recommender system and the data
source for each input; and
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(3) the weights used in each algorithmic recommender system, categorized into four
quartile groups according to each weight's relative importance in contributing to the system's
output.
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(b) The commissioner of commerce must adopt rules to further clarify the information
that must be disclosed under paragraph (a).
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(c) A covered online platform must annually disclose the high-level objectives, key
results, and performance metrics the covered online platform uses to evaluate product teams
responsible for algorithmic recommender system design.
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new text begin Subd. 4. new text end
new text begin User choice; defaults. new text end
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(a) For all services, products, and features where a
covered online platform uses an algorithmic recommender system that uses personal data,
the algorithmic recommender system must be configured, by default, to maximize one or
more long-term user value metrics.
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(b) A covered online platform must provide an accessible user interface that enables a
user to expressly and unambiguously communicate the user's preferences regarding the
types of items recommended and the types of items blocked in the output generated by the
covered online platform's algorithmic recommender systems. A covered online platform
must take all reasonable steps to ensure that the output of the covered online platform's
algorithmic recommender systems is consistent with the user's preferences.
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(c) Unless doing so is necessary to comply with this section or rules adopted pursuant
to this section, a covered online platform is prohibited from withholding, degrading, lowering
the quality, or increasing the price of a product, service, or feature for a user as a result of
the user exercising a right established under this section, including the user selecting an
algorithmic recommender system option or expressed preference regarding the type of item
recommended or blocked.
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new text begin Subd. 5. new text end
new text begin Covered minors. new text end
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An algorithmic recommender system that uses personal data
and is provided by a covered online platform to a covered minor must be configured by
default to maximize one or more long-term user value metrics applicable to minors.
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new text begin Subd. 6. new text end
new text begin Long-term assessments. new text end
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(a) A covered online platform must maintain at least
one holdout group and make all changes to the design of an algorithmic recommender
system subject to a long-term holdout assessment, under rules adopted under paragraph (c).
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(b) On an annual basis, a covered online platform must make publicly available in an
easily accessible location a long-term holdout assessment disclosure that includes:
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(1) the covered online platform's long-term user value metrics;
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(2) the aggregate and anonymized measurements for each metric across the holdout
group or groups; and
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(3) the aggregate and anonymized measurements for each metric across the rest of the
covered online platform's user base.
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(c) The commissioner of commerce must adopt rules governing the operation of long-term
holdout assessments under this section. The rules must include:
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(1) requirements for constructing holdout groups when performing long-term holdout
assessments under this section;
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(2) requirements for long-term holdout assessment disclosures required under paragraph
(b); and
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(3) in the commissioner of commerce's discretion, an exemption from the long-term
holdout assessment requirements under this section if a covered online platform changes
an algorithmic recommender system's design in a manner that reduces or prevents direct
and immediate harm to users without increasing user engagement or revenue for the covered
business.
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(d) At least annually, a covered business operating a covered online platform must, at
the covered business's expense, obtain an independent audit of the long-term holdout
assessments on the covered business's platform and the long-term holdout assessment
disclosure. To comply with this paragraph:
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(1) the independent auditor preparing reports must follow inspection and consultation
practices designed to ensure the reports are comprehensive and accurate; and
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(2) the covered online platform must provide the independent auditor with (i) full and
complete cooperation, and (ii) access to information and operations required to ensure the
report is comprehensive and accurate.
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new text begin Subd. 7. new text end
new text begin Enforcement. new text end
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(a) A covered business that violates this section or rules adopted
pursuant to this section commits an unfair and deceptive act that violates section 325D.44.
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(b) The attorney general may enforce this section under section 8.31.
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(c) A covered business that violates this section or rules adopted pursuant to this section
constitute an injury to a user that entitles the user to the remedies available under section
325D.45 and:
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(1) monetary damages of $5,000, adjusted annually to reflect an increase in the Consumer
Price Index, per user per violation or actual damages, whichever is greater;
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(2) for a reckless or knowing violation of this section, punitive damages of $7,000,
adjusted annually to reflect an increase in the Consumer Price Index, per violation or actual
damages, whichever is greater;
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(3) reasonable attorney fees and litigation costs; and
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(4) other relief, including injunctive or declaratory relief, as the state or federal court
deems appropriate.
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