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