Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2025 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to consumer protection; establishing the Fair Competition Act; regulating
3	3	1.3 monopsony power; prohibiting certain price increases; prohibiting price
4	4	1.4 discrimination; providing enforcement authority; modifying and establishing civil
5	5	1.5 and criminal penalties; amending Minnesota Statutes 2024, sections 325D.50, by
6	6	1.6 adding subdivisions; 325D.52; 325D.53, subdivision 1, by adding a subdivision;
7	7	1.7 325D.54; 325D.56, subdivisions 1, 2; 325D.64, subdivision 1; proposing coding
8	8	1.8 for new law in Minnesota Statutes, chapters 325E; 325F; repealing Minnesota
9	9	1.9 Statutes 2024, section 325D.03.
10	10	1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
11	11	1.11 Section 1. Minnesota Statutes 2024, section 325D.50, is amended by adding a subdivision
12	12	1.12to read:
13	13	1.13 Subd. 4a.Monopoly power."Monopoly power" means the power to control prices or
14	14	1.14exclude competition. A firm has monopoly power if the firm is able to profitably raise prices
15	15	1.15substantially above the competitive level for a significant period of time. A firm has
16	16	1.16monopoly power if the firm is able to exclude competitors.
17	17	1.17 Sec. 2. Minnesota Statutes 2024, section 325D.50, is amended by adding a subdivision to
18	18	1.18read:
19	19	1.19 Subd. 4b.Monopsony."Monopsony" means a market condition where only one buyer
20	20	1.20exists.
21	21	1Sec. 2.
22	22	25-01319 as introduced02/03/25 REVISOR RSI/AC
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 2025NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: WESTLIN)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading02/27/2025
29	29	Referred to Commerce and Consumer Protection 2.1 Sec. 3. Minnesota Statutes 2024, section 325D.50, is amended by adding a subdivision to
30	30	2.2read:
31	31	2.3 Subd. 4c.Monopsony power."Monopsony power" means an individual buyer is able
32	32	2.4to influence demand and price for a good or service.
33	33	2.5 Sec. 4. Minnesota Statutes 2024, section 325D.52, is amended to read:
34	34	2.6 325D.52 ESTABLISHMENT, MAINTENANCE, OR USE OF MONOPOLY
35	35	2.7POWER.
36	36	2.8 The establishment, maintenance, or use of, or any attempt to establish, maintain, or use
37	37	2.9monopoly or monopsony power over any part of trade or commerce by any person or persons
38	38	2.10for the purpose of affecting competition or controlling, fixing, or maintaining prices is
39	39	2.11unlawful. Evidence of procompetitive effects is not a defense to using monopoly or
40	40	2.12monopsony power to affect competition or to control, fix, or maintain prices, and does not
41	41	2.13offset or cure competitive harm.
42	42	2.14 Sec. 5. Minnesota Statutes 2024, section 325D.53, subdivision 1, is amended to read:
43	43	2.15 Subdivision 1.Price fixing, production control, allocation of markets, collusive
44	44	2.16bidding, and concerted refusals to deal.Without limiting section 325D.51, the following
45	45	2.17shall be deemed to restrain trade or commerce unreasonably and are unlawful:
46	46	2.18 (1) A contract, combination, or conspiracy between two or more persons by a person in
47	47	2.19competition:
48	48	2.20 (a) for the purpose or with the effect of affecting, fixing, controlling or maintaining the
49	49	2.21market price, rate, or fee of any commodity or service;
50	50	2.22 (b) affecting, fixing, controlling, maintaining, limiting, or discontinuing the production,
51	51	2.23manufacture, mining, sale or supply of any commodity, or the sale or supply of any service,
52	52	2.24for the purpose or with the effect of affecting, fixing, controlling, or maintaining the market
53	53	2.25price, rate, or fee of the commodity or service; or
54	54	2.26 (c) allocating or dividing customers or markets, functional or geographical, for any
55	55	2.27commodity or service.
56	56	2.28 (2) A contract, combination, or conspiracy between two or more persons by a person
57	57	2.29whereby, in the letting of any public contract, (a) the price quotation of any bid is fixed or
58	58	2.30controlled, (b) one or more persons refrains from the submission of a bid, or (c) competition
59	59	2.31is in any other manner restrained.
60	60	2Sec. 5.
61	61	25-01319 as introduced02/03/25 REVISOR RSI/AC 3.1 (3) A contract, combination, or conspiracy between two or more persons by a person
62	62	3.2refusing to deal with another person, except a refusal to deal by associations, trading boards,
63	63	3.3or exchanges when predicated upon a failure to comply with rules of membership.
64	64	3.4 Sec. 6. Minnesota Statutes 2024, section 325D.53, is amended by adding a subdivision to
65	65	3.5read:
66	66	3.6 Subd. 4.Aiding and abetting.It is unlawful to facilitate or aid and abet another person
67	67	3.7in violating this section. Each separate instance of facilitating or aiding and abetting another
68	68	3.8person in violating this section is a separate violation of this section.
69	69	3.9 Sec. 7. Minnesota Statutes 2024, section 325D.54, is amended to read:
70	70	3.10 325D.54 SCOPE OF ACT.
71	71	3.11 Sections 325D.49 to 325D.66 apply to:
72	72	3.12 (a) (1) any contract, combination, or conspiracy when any part thereof was created,
73	73	3.13formed, or entered into in this state; and
74	74	3.14 (b) (2) any contract, combination, or conspiracy, wherever created, formed, or entered
75	75	3.15into; any establishment, maintenance, or use of monopoly power; and any attempt to establish,
76	76	3.16maintain, or use monopoly or monopsony power; whenever any of the foregoing affects
77	77	3.17the trade or commerce of this state.
78	78	3.18 Sec. 8. Minnesota Statutes 2024, section 325D.56, subdivision 1, is amended to read:
79	79	3.19 Subdivision 1.Civil penalties.Any A person who is found to have violated sections
80	80	3.20325D.49 to 325D.66, shall be is subject to a civil penalty of: (1) not more than $50,000.
81	81	3.21Any $100,000 per violation for an individual; (2) not more than $500,000 for a corporation
82	82	3.22with annual revenue below $5,000,000; (3) not more than $1,000,000 for a corporation with
83	83	3.23annual revenue between $5,000,000 and $10,000,000; and (4) up to $5,000,000 per violation
84	84	3.24for a corporation with annual revenue in excess of $10,000,000. A person or corporation
85	85	3.25who fails to comply with a final judgment or decree rendered by a court of this state issued
86	86	3.26for a violation of sections 325D.49 to 325D.66, shall be subject to a civil penalty of not
87	87	3.27more than $100,000 $250,000.
88	88	3.28 Sec. 9. Minnesota Statutes 2024, section 325D.56, subdivision 2, is amended to read:
89	89	3.29 Subd. 2.Criminal penalty.Any A person who is found to have willfully committed
90	90	3.30any of the acts enumerated in section 325D.53 shall be is guilty of a felony and subject to
91	91	3Sec. 9.
92	92	25-01319 as introduced02/03/25 REVISOR RSI/AC 4.1(1) a fine of not more than $50,000 per violation or the actual damages imposed by the
93	93	4.2conduct, (2) imprisonment in the state penitentiary for not more than seven years, or (3)
94	94	4.3both penalties under clauses (1) and (2).
95	95	4.4 Sec. 10. Minnesota Statutes 2024, section 325D.64, subdivision 1, is amended to read:
96	96	4.5 Subdivision 1.Interpretation and effect.An action under sections 325D.49 to 325D.66,
97	97	4.6shall be forever barred unless commenced within four years of the date upon which the
98	98	4.7cause of action arose. No cause of action barred under existing law on June 8, 1971 shall
99	99	4.8be revived by sections 325D.49 to 325D.66. For the purpose of this section, a cause of action
100	100	4.9for a continuing violation is deemed to arise at any time during the period of the violation.
101	101	4.10accrues:
102	102	4.11 (1) when the circumstances giving rise to the cause of action are discovered or should
103	103	4.12have been discovered in the exercise of reasonable diligence; or
104	104	4.13 (2) on the date that the last in a series of acts or practices in violation of sections 325D.49
105	105	4.14to 325D.66 occurs.
106	106	4.15 Sec. 11. [325E.81] UNCONSCIONABL Y EXCESSIVE PRICES PROHIBITED.
107	107	4.16 Subdivision 1.Definitions.(a) For purposes of this section, the terms in this subdivision
108	108	4.17have the meanings given.
109	109	4.18 (b) "Person" means an individual, firm partnership, incorporated or unincorporated
110	110	4.19association, or any other legal or commercial entity.
111	111	4.20 (c) "Unconscionably excessive" means:
112	112	4.21 (1) the amount charged is more than ten percent greater than the average price at which
113	113	4.22the same or similar good or service was obtainable in the affected area during the last 30
114	114	4.23days; or
115	115	4.24 (2) the amount charged is more than ten percent greater than the average price at which
116	116	4.25the same or similar good or service is readily obtainable by other purchasers in the subject
117	117	4.26trade area.
118	118	4.27 Subd. 2.Prohibition; exception.(a) A person is prohibited from selling or offering to
119	119	4.28sell a consumer good or service for an amount that represents an unconscionably excessive
120	120	4.29price. The prohibition under this section applies to all parties in the chain of distribution,
121	121	4.30including but not limited to a manufacturer, supplier, wholesaler, distributor, or retail seller
122	122	4.31of goods or services.
123	123	4Sec. 11.
124	124	25-01319 as introduced02/03/25 REVISOR RSI/AC 5.1 (b) A price increase is not unlawful if the person increasing the price proves the price
125	125	5.2increase (1) is substantially attributable to significant additional costs outside the control
126	126	5.3of the person, and (2) does not increase the person's profit.
127	127	5.4 Subd. 3.Enforcement.The attorney general may investigate and bring an enforcement
128	128	5.5action to remediate and enjoin any alleged violation of this section. The attorney general's
129	129	5.6authority under this section includes but is not limited to the authority provided under section
130	130	5.78.31, except that a civil penalty imposed under section 8.31 must not exceed $10,000 per
131	131	5.8violative sale or transaction.
132	132	5.9 EFFECTIVE DATE.This section is effective the day following final enactment.
133	133	5.10 Sec. 12. [325F.035] COMMERCIAL TRANSACTIONS; PRICE DISCRIMINATION.
134	134	5.11 Subdivision 1.Price discrimination prohibited.(a) A person engaged in commerce,
135	135	5.12in the course of the commerce, is prohibited from directly or indirectly discriminating in
136	136	5.13price between different purchasers of commodities of like grade and quality if:
137	137	5.14 (1) either or any of the purchases involved in the discrimination are in commerce;
138	138	5.15 (2) the commodities are sold for use, consumption, or resale within Minnesota; and
139	139	5.16 (3) the effect of the discrimination lessens competition or tends to:
140	140	5.17 (i) create a monopoly or monopsony in any line of commerce; or
141	141	5.18 (ii) injure, destroy, or prevent competition with:
142	142	5.19 (A) a person who grants or knowingly receives the benefit of the discrimination; or
143	143	5.20 (B) customers of a person who grants or knowingly receives the benefit of the
144	144	5.21discrimination.
145	145	5.22 (b) Nothing in this subdivision prevents:
146	146	5.23 (1) differentials that only make due allowance for differences in the cost to manufacture,
147	147	5.24sell, or deliver that result from the differing methods or quantities that commodities are sold
148	148	5.25or delivered to purchasers;
149	149	5.26 (2) a person engaged in selling goods, wares, or merchandise in commerce from selecting
150	150	5.27customers in bona fide transactions and not in restraint of trade; or
151	151	5.28 (3) price changes from time to time in response to changing conditions affecting the
152	152	5.29market for or the marketability of the goods concerned, including but not limited to:
153	153	5.30 (i) actual or imminent deterioration of perishable goods;
154	154	5Sec. 12.
155	155	25-01319 as introduced02/03/25 REVISOR RSI/AC 6.1 (ii) obsolescence of seasonal goods;
156	156	6.2 (iii) distress sales under court process; or
157	157	6.3 (iv) sales in good faith to discontinue business in the goods concerned.
158	158	6.4 Subd. 2.Prima facie case; rebuttal.(a) Upon proof being made at any hearing on a
159	159	6.5complaint made under subdivision 1 that price discrimination has occurred, the burden of
160	160	6.6rebutting the prima facie case made by showing justification is upon the person charged
161	161	6.7with violating this section. Unless justification is affirmatively demonstrated, an order
162	162	6.8terminating the discrimination may be issued.
163	163	6.9 (b) Nothing in this subdivision prevents a seller rebutting the prima facie case made by
164	164	6.10showing that the seller's lower price to any purchaser or purchasers was made in good faith
165	165	6.11to meet a competitor's equally low price.
166	166	6.12 Sec. 13. REPEALER.
167	167	6.13 Minnesota Statutes 2024, section 325D.03, is repealed.
168	168	6Sec. 13.
169	169	25-01319 as introduced02/03/25 REVISOR RSI/AC 325D.03 DISCRIMINATION UNLAWFUL.
170	170	Any person, partnership, firm, or corporation, foreign or domestic, doing business in the state
171	171	and engaged in the production, manufacture, or distribution of any printed or mimeograph matter,
172	172	commodity, article, goods, wares, or merchandise in general use or consumption, who for the
173	173	purpose or with the effect of injuring a competitor or destroying competition, shall discriminate
174	174	between different sections, communities, or cities of this state by selling or furnishing such
175	175	commodity, article, goods, wares or merchandise at a lower price, or rate in one section, community,
176	176	or city, or any portion thereof, than such person, firm, or corporation, foreign or domestic, charges
177	177	for such commodity, article, goods, wares, or merchandise in another section, community, or city,
178	178	or any portion thereof, after making allowance for difference, if any, in the grade, quality, or quantity
179	179	after equalizing the distance from the point of production, manufacture, or distribution and freight
180	180	rates therefrom, shall be guilty of unfair discrimination; provided, that sections 325D.01 to 325D.07
181	181	shall not prevent any person, firm, or corporation from, in good faith, meeting local competition
182	182	within any one section, community, or city. The inhibition hereof against locality discrimination
183	183	shall embrace any scheme of special rebates, collateral contracts, or any device of any nature
184	184	whereby such discrimination is, in substance or fact, effected in violation of the spirit and intent of
185	185	sections 325D.01 to 325D.07.
186	186	1R
187	187	APPENDIX
188	188	Repealed Minnesota Statutes: 25-01319