Minnesota amends list of deceptive practices to include hidden fees

State Issues Fees Minnesota State Legislation Deceptive UDAP

On May 20, the Governor of Minnesota approved HF 3438 (the “Act”) which rewrote two sections of Minnesota’s statutes to 1) redefine the scope of engaging in a deceptive trade practice, and 2) indemnify certain exemptions. Under the revised statute, in Minnesota, a person will engage in a deceptive trade practice when it lists the price of a good or service but does not include all mandatory fees or surcharges. Further, a mandatory fee will include, but is not limited to, a fee that must be paid in order to purchase the goods or services advertised, was not reasonably avoidable by the consumer, or that would be reasonably expected in the purchase of a good or service. A mandatory fee would not include taxes imposed by a government entity. When a consumer would complete a purchase on a delivery platform, the delivery platform must display “in a clear and conspicuous manner” any additional flat fees or percentages which are charged for that purchase. Upon checkout, the delivery platform must display the subtotal and any additional fees added to the total cost. The second amended section referred to exemptions related to lawful fees in association with the purchase or lease of an automobile from a dealership. The Act will go into effect on January 1, 2025.