| 1 | 1 | | 1.1 A bill for an act |
|---|
| 2 | 2 | | 1.2 relating to commerce; exempting food and beverage service establishments from |
|---|
| 3 | 3 | | 1.3 the mandatory fee advertisement requirement; amending Minnesota Statutes 2024, |
|---|
| 4 | 4 | | 1.4 section 325D.44, subdivisions 1a, 1b. |
|---|
| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
|---|
| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 325D.44, subdivision 1a, is amended to read: |
|---|
| 7 | 7 | | 1.7 Subd. 1a.Advertisements, displays, or offers.(a) A person engages in a deceptive |
|---|
| 8 | 8 | | 1.8trade practice when, in the course of business, vocation, or occupation, the person advertises, |
|---|
| 9 | 9 | | 1.9displays, or offers a price for goods or services that does not include all mandatory fees or |
|---|
| 10 | 10 | | 1.10surcharges. If the person that disseminates an advertisement is independent of the advertiser, |
|---|
| 11 | 11 | | 1.11the person is not liable for the content of the advertisement. |
|---|
| 12 | 12 | | 1.12 (b) For purposes of this subdivision, "mandatory fee" includes but is not limited to a fee |
|---|
| 13 | 13 | | 1.13or surcharge that: |
|---|
| 14 | 14 | | 1.14 (1) must be paid in order to purchase the goods or services being advertised; |
|---|
| 15 | 15 | | 1.15 (2) is not reasonably avoidable by the consumer; or |
|---|
| 16 | 16 | | 1.16 (3) a reasonable person would expect to be included in the purchase of the goods or |
|---|
| 17 | 17 | | 1.17services being advertised. |
|---|
| 18 | 18 | | 1.18For the purposes of this subdivision, mandatory fee does not include taxes imposed by a |
|---|
| 19 | 19 | | 1.19government entity on the sale, use, purchase, receipt, or delivery of the goods or services. |
|---|
| 20 | 20 | | 1.20 (c) A delivery platform is compliant with this subdivision if the platform satisfies all of |
|---|
| 21 | 21 | | 1.21the following requirements: |
|---|
| 22 | 22 | | 1Section 1. |
|---|
| 23 | 23 | | 25-04503 as introduced03/17/25 REVISOR RSI/LJ |
|---|
| 24 | 24 | | SENATE |
|---|
| 25 | 25 | | STATE OF MINNESOTA |
|---|
| 26 | 26 | | S.F. No. 3225NINETY-FOURTH SESSION |
|---|
| 27 | 27 | | (SENATE AUTHORS: RASMUSSON) |
|---|
| 28 | 28 | | OFFICIAL STATUSD-PGDATE |
|---|
| 29 | 29 | | Introduction and first reading04/02/2025 |
|---|
| 30 | 30 | | Referred to Commerce and Consumer Protection 2.1 (1) at the point when a consumer views and selects either a vendor or items for purchase, |
|---|
| 31 | 31 | | 2.2a delivery platform must display in a clear and conspicuous manner that an additional flat |
|---|
| 32 | 32 | | 2.3fee or percentage is charged. The disclosure must include the additional fee or percentage |
|---|
| 33 | 33 | | 2.4amount; and |
|---|
| 34 | 34 | | 2.5 (2) after a consumer selects items for purchase, but prior to checkout, a delivery platform |
|---|
| 35 | 35 | | 2.6must display a subtotal page that itemizes the price of the menu items and the additional |
|---|
| 36 | 36 | | 2.7fee that is included in the total cost. |
|---|
| 37 | 37 | | 2.8 (d) A person may charge a reasonable postage or shipping fee that is actually incurred |
|---|
| 38 | 38 | | 2.9by a consumer who has purchased a good that requires shipping. |
|---|
| 39 | 39 | | 2.10 (e) Nothing in this subdivision prevents a person from offering goods or services at a |
|---|
| 40 | 40 | | 2.11discounted price from the advertised, displayed, or offered price. |
|---|
| 41 | 41 | | 2.12 (f) A person offering goods or services in an auction where consumers can place bids |
|---|
| 42 | 42 | | 2.13on the goods or services and the total cost is indeterminable is compliant with this subdivision |
|---|
| 43 | 43 | | 2.14if the person discloses in a clear and conspicuous manner any mandatory fees associated |
|---|
| 44 | 44 | | 2.15with the transaction and that the total cost of the goods or services may vary. |
|---|
| 45 | 45 | | 2.16 (g) A person offering services where the total cost of a service is determined by consumer |
|---|
| 46 | 46 | | 2.17selections and preferences, or where the total cost of the service relates to distance or time, |
|---|
| 47 | 47 | | 2.18is compliant with this subdivision if the person discloses in a clear and conspicuous manner |
|---|
| 48 | 48 | | 2.19(1) the factors that determine the total price, (2) any mandatory fees associated with the |
|---|
| 49 | 49 | | 2.20transaction, and (3) that the total cost of the services may vary. |
|---|
| 50 | 50 | | 2.21 (h) A food or beverage service establishment, including a hotel, is compliant with this |
|---|
| 51 | 51 | | 2.22subdivision if, in every offer or advertisement for the purchase of a good or service that |
|---|
| 52 | 52 | | 2.23includes pricing information, the total price of the good or service being offered or advertised |
|---|
| 53 | 53 | | 2.24includes a clear and conspicuous disclosure of the percentage of any automatic and mandatory |
|---|
| 54 | 54 | | 2.25gratuities charged. |
|---|
| 55 | 55 | | 2.26 (i) (h) A person is compliant with this subdivision if the person providing broadband |
|---|
| 56 | 56 | | 2.27Internet access service on its own or as part of a bundle is compliant with the broadband |
|---|
| 57 | 57 | | 2.28consumer label requirements under Code of Federal Regulations, title 47, section 8.1(a). |
|---|
| 58 | 58 | | 2.29 (j) (i) A person is compliant with this subdivision if the person is compliant with the |
|---|
| 59 | 59 | | 2.30pricing requirements under United States Code, title 47, section 552. |
|---|
| 60 | 60 | | 2.31 (k) (j) This subdivision is enforceable unless preempted by federal law. |
|---|
| 61 | 61 | | 2Section 1. |
|---|
| 62 | 62 | | 25-04503 as introduced03/17/25 REVISOR RSI/LJ 3.1 Sec. 2. Minnesota Statutes 2024, section 325D.44, subdivision 1b, is amended to read: |
|---|
| 63 | 63 | | 3.2 Subd. 1b.Exemptions.Subdivision 1a does not apply to the following: |
|---|
| 64 | 64 | | 3.3 (1) fees authorized by law related to the purchase or lease of a motor vehicle that are |
|---|
| 65 | 65 | | 3.4charged by a motor vehicle dealer, as defined by section 168.27, subdivision 1, paragraph |
|---|
| 66 | 66 | | 3.5(f); |
|---|
| 67 | 67 | | 3.6 (2) any business or the business' affiliate where either the business or the affiliate is |
|---|
| 68 | 68 | | 3.7regulated by the Minnesota Public Utilities Commission; or |
|---|
| 69 | 69 | | 3.8 (3) any fees, surcharges, or other costs associated with settlement services, as defined |
|---|
| 70 | 70 | | 3.9in the Real Estate Settlement Procedures Act, United States Code, title 12, section 2602(3). |
|---|
| 71 | 71 | | 3.10This clause does not apply to real estate broker commissions and fees.; or |
|---|
| 72 | 72 | | 3.11 (4) individual food or beverage items sold directly to a consumer by: |
|---|
| 73 | 73 | | 3.12 (i) a restaurant; |
|---|
| 74 | 74 | | 3.13 (ii) a hotel; |
|---|
| 75 | 75 | | 3.14 (iii) a bar; |
|---|
| 76 | 76 | | 3.15 (iv) a food concession, as defined by section 157.15; |
|---|
| 77 | 77 | | 3.16 (v) a grocery store or grocery delivery service; or |
|---|
| 78 | 78 | | 3.17 (vi) a menu or contract for banquet or catering services that fully discloses the terms of |
|---|
| 79 | 79 | | 3.18service if a mandatory fee or charge is clearly and conspicuously displayed with an |
|---|
| 80 | 80 | | 3.19explanation of the mandatory fee or charge's purpose on an advertisement, menu, or other |
|---|
| 81 | 81 | | 3.20display that meets applicable United States Food and Drug Administration type-size |
|---|
| 82 | 82 | | 3.21requirements under Code of Federal Regulations, title 21, part 101. |
|---|
| 83 | 83 | | 3Sec. 2. |
|---|
| 84 | 84 | | 25-04503 as introduced03/17/25 REVISOR RSI/LJ |
|---|