HF 3438

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/01/2024 11:46pm

A bill for an act
relating to consumer protection; adding the failure to disclose mandatory fees in
advertising as a deceptive trade practice; amending Minnesota Statutes 2022,
sections 325D.43, by adding a subdivision; 325D.44, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 325D.43, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Person. new text end

new text begin "Person" means any individual, corporation, firm, partnership,
incorporated and unincorporated association, or any other legal or commercial entity.
new text end

Sec. 2.

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,
then that person shall not be 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 must comply with 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 will be 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 will be included in the total cost.
new text end

new text begin (d) A person may charge a reasonable postage or shipping fee that will be actually
incurred by a consumer who has purchased a good that requires shipping.
new text end

new text begin (e) Nothing in this subdivision shall prevent 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 must disclose 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 is determined by consumer selections
and preferences relating to distance or time, must disclose in a clear and conspicuous manner
the factors that will determine the total price, any mandatory fees associated with the
transaction, and that the total cost of the services may vary.
new text end

new text begin (h) This subdivision is enforceable to the extent permitted by federal law.
new text end

Sec. 3.

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

new text begin Subd. 4. new text end

new text begin Automatic gratuity. new text end

new text begin A food service establishment shall be deemed compliant
with this section if, in every offer or advertisement for the purchase or lease 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 to be charged.
new text end