SF 3537

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/19/2024 03:58pm

A bill for an act
relating to consumer protection; defining deceptive trade practices to include the
failure to disclose mandatory fees in advertising; amending Minnesota Statutes
2022, section 325D.44, by adding a subdivision.

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:

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 consumer would expect to be included in the purchase of the goods or
services being advertised.
new text end

new text begin (c) For the purposes of this subdivision, mandatory fee does not include:
new text end

new text begin (1) taxes imposed by a government entity on the sale, use, purchase, receipt, or delivery
of the goods or services; or
new text end

new text begin (2) fees related to the purchase or lease of a motor vehicle which are authorized by
Minnesota Statutes.
new text end

new text begin (d) 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, or 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) 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

new text begin (i) This subdivision does not apply to the following:
new text end

new text begin (1) any industry where federal law or other state law regulates pricing disclosures;
new text end

new text begin (2) any fees, surcharges, or other costs associated with settlement services, as defined
in the Real Estate Settlement Procedures Act under United States Code, title 12, section
2602(3);
new text end

new text begin (3) any business or its affiliate where either the business or the affiliate is regulated by
the Minnesota Public Utilities Commission or the Federal Communications Commission;
or
new text end

new text begin (4) any industry where prices are regulated by a governmental authority or corporate
brand that requires a disclosure of a fee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end