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SF 3424

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to commerce; regulating unlawful trade practices, deceptive trade
practices, consumer fraud, and false statements in advertising; modifying private
remedies; providing for the application and construction of these acts; amending
Minnesota Statutes 2006, sections 8.31, subdivision 3a, by adding a subdivision;
325D.09; 325D.16; 325D.46, subdivision 1; 325D.47; 325F.67; 325F.69, by
adding subdivisions.

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

Section 1.

Minnesota Statutes 2006, section 8.31, subdivision 3a, is amended to read:


Subd. 3a.

Private remedies.

In addition to the remedies otherwise provided by lawnew text begin
and subject to subdivision 3d
new text end , any person injured by a violation of any of the laws referred
to in subdivision 1 may bring a civil action and recover damages, together with costs
and disbursements, including costs of investigation and reasonable attorney's fees, and
receive other equitable relief as determined by the court. The court may, as appropriate,
enter a consent judgment or decree without the finding of illegality. In any action brought
by the attorney general pursuant to this section, the court may award any of the remedies
allowable under this subdivision.

Sec. 2.

Minnesota Statutes 2006, section 8.31, is amended by adding a subdivision to
read:


new text begin Subd. 3d. new text end

new text begin Private remedies for Unlawful Trade Practices Act, Prevention of
Consumer Fraud Act, False Statement in Advertisement Act.
new text end

new text begin Civil actions pursuant to
subdivision 3a for violations of the Unlawful Trade Practices Act, sections 325D.09 to
325D.29; Prevention of Consumer Fraud Act, sections 325F.68 to 325F.70; or the False
Statement in Advertisement Act, section 325F.67; or other laws against false or fraudulent
advertising may be brought only by natural persons who purchase or lease goods, services,
or real estate for personal, family, or household purposes. Each such person seeking to
recover damages for violations of these sections, either in an individual action, a class
action, or any other type of action, must be required to prove on an individual basis that
the deceptive act or practice caused the person to enter into the transaction that resulted
in the person's damages. No award of damages in an action covered by this subdivision
may be made without proof that the person or persons seeking damages suffered an
actual out-of-pocket loss. "Out-of-pocket loss" means an amount of money equal to the
difference between the amount paid by the consumer for the good or service and the actual
market value of the good or service that the consumer actually received.
new text end

Sec. 3.

Minnesota Statutes 2006, section 325D.09, is amended to read:


325D.09 UNLAWFUL TRADE PRACTICES.

new text begin Subdivision 1. new text end

new text begin Findings. new text end

The legislature of the state of Minnesota hereby finds:
that the trade practices defined and prohibited by sections 325D.09 to 325D.16 are
detrimental to labor, destructive to employment, and injurious to the best interests of
workers; that they mislead consumers into believing that they are buying merchandise at
prices substantially below regular retail prices, when in fact they are not; that they mislead
consumers as to the quality, ingredients and origin of merchandise purchased; that they
deprive consumers of various customer services offered by regularly established and bona
fide retail outlets without compensating advantage to consumers; and that they constitute
unfair and fraudulent competition and unsound and uneconomic methods of distribution.
The legislature, acting in the exercise of the police power of the state, declares that the
public policy of the state requires, and that the general welfare of the state will be benefited
by, the suppression of the trade practices hereinafter defined.

new text begin Subd. 2. new text end

new text begin Intent. new text end

new text begin It is the intent of the legislature that in construing sections 325D.09
to 325D.16, courts shall be guided by the policies of the Federal Trade Commission
and interpretations given by the Federal Trade Commission and the federal courts to
section 5(a)(1) of the Federal Trade Commission Act, United States Code, title 15, section
45(a)(1), as amended.
new text end

Sec. 4.

Minnesota Statutes 2006, section 325D.16, is amended to read:


325D.16 APPLICATION.

new text begin (a) new text end Nothing in sections 325D.09 to 325D.16 shall be deemed to prohibit the sale by
an employer to employees of the employer's own products or property at any price.

new text begin (b) This section does not apply to actions or transactions otherwise permitted by the
Federal Trade Commission or any other regulatory body or officer acting under statutory
authority of this state or the United States.
new text end

Sec. 5.

Minnesota Statutes 2006, section 325D.46, subdivision 1, is amended to read:


Subdivision 1.

Nonapplication.

Sections 325D.43 to 325D.48 do not apply to:

(1) deleted text begin conduct in compliance with the orders or rules of, or a statute administered by, a
federal, state, or local governmental agency
deleted text end new text begin actions or transactions otherwise permitted or
regulated by the Federal Trade Commission or any other regulatory body or officer acting
under statutory authority of this state or the United States
new text end ; or

(2) actions or appeals pending on July 1, 1973.

Sec. 6.

Minnesota Statutes 2006, section 325D.47, is amended to read:


325D.47 UNIFORMITY OF APPLICATION AND CONSTRUCTION.

deleted text begin Sections 325D.43 to 325D.48 shall be so applied and construed as to effectuate its
general purpose to make uniform the law with respect to the subject of sections 325D.43
to 325D.48 among those states which enact it.
deleted text end new text begin It is the intent of the legislature that in
construing sections 325D.43 to 325D.48, courts shall be guided by the policies of the
Federal Trade Commission and interpretations given by the Federal Trade Commission
and the federal courts to section 5(a)(1) of the Federal Trade Commission Act, United
States Code, title 15, section 45(a)(1), as amended.
new text end

Sec. 7.

Minnesota Statutes 2006, section 325F.67, is amended to read:


325F.67 FALSE STATEMENT IN ADVERTISEMENT.

Any person, firm, corporation, or association who, with intent to sell or in anywise
dispose of merchandise, securities, service, or anything offered by such person, firm,
corporation, or association, directly or indirectly, to the public, for sale or distribution, or
with intent to increase the consumption thereof, or to induce the public in any manner to
enter into any obligation relating thereto, or to acquire title thereto, or any interest therein,
makes, publishes, disseminates, circulates, or places before the public, or causes, directly
or indirectly, to be made, published, disseminated, circulated, or placed before the public,
in this state, in a newspaper or other publication, or in the form of a book, notice, handbill,
poster, bill, label, price tag, circular, pamphlet, program, or letter, or over any radio or
television station, or in any other way, an advertisement of any sort regarding merchandise,
securities, service, or anything so offered to the public, for use, consumption, purchase, or
sale, which advertisement contains any material assertion, representation, or statement of
fact which is untrue, deceptive, or misleading, shall, whether or not pecuniary or other
specific damage to any person occurs as a direct result thereof, be guilty of a misdemeanor,
and any such act is declared to be a public nuisance and may be enjoined as such.

new text begin This section does not apply to actions or transactions otherwise permitted or
regulated by the Federal Trade Commission or any other regulatory body or officer acting
under statutory authority of this state or the United States. It is also the intent of the
legislature that in construing this section, courts shall be guided by the policies of the
Federal Trade Commission and interpretations given by the Federal Trade Commission
and the federal courts to section 5(a)(1) of the Federal Trade Commission Act, United
States Code, title 15, section 45(a)(1), as amended.
new text end

The duty of a strict observance and enforcement of this law and prosecution for any
violation thereof is hereby expressly imposed upon the attorney general, and it shall be
the duty of the county attorney of any county wherein a violation of this section shall
have occurred, upon complaint being made, to prosecute any person violating any of the
provisions of this section.

Sec. 8.

Minnesota Statutes 2006, section 325F.69, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin This section shall not apply to actions or transactions
otherwise permitted by the Federal Trade Commission or any other regulatory body or
officer acting under statutory authority of this state or the United States.
new text end

Sec. 9.

Minnesota Statutes 2006, section 325F.69, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Construction. new text end

new text begin It is the intent of the legislature that in construing this
section, courts shall be guided by the policies of the Federal Trade Commission and
interpretations given by the Federal Trade Commission and the federal courts to section
5(a)(1) of the Federal Trade Commission Act, United States Code, title 15, section
45(a)(1), as amended.
new text end

Sec. 10. new text begin SEVERABILITY.
new text end

new text begin Sections 1 to 9 are severable. If any portion of sections 1 to 9 is declared
unconstitutional or the application of any part of sections 1 to 9 to any person or
circumstance is held invalid, the remaining portions of sections 1 to 9 and their
applicability to any person or circumstance remains valid and enforceable.
new text end

Sec. 11. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 8.31, subdivision
3d as subdivision 3b, subdivision 3b as subdivision 3c, and subdivision 3c as subdivision
3d in Minnesota Statutes and Minnesota Rules, and shall make all necessary reference
changes.
new text end

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective July 1, 2008, and apply to all cases pending on or
filed on or after that date.
new text end