HF 3438

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/16/2024 03:55pm

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.

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:

Subd. 1a.

Advertisements, displays, or offers.

(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.

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

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

(2) is not reasonably avoidable by the consumer; or

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

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.

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

(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

(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.

(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.

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

(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.

(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.

(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.

(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).

(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.

(k) This subdivision is enforceable unless preempted by federal law.

EFFECTIVE DATE.

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.

Sec. 2.

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

Subd. 1b.

Exemptions.

Subdivision 1a does not apply to the following:

(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);

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

(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.

EFFECTIVE DATE.

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.