House Passes Legislation to Combat Junk Fees and Ensure Ticket Price Transparency

Saint Paul, MN. – Today House DFLers passed legislation cracking down on hidden, deceptive fees to ensure consumers have fair, upfront pricing for event tickets, restaurant meals, hotels, credit cards and more. The first, HF 1989, authored by Rep. Kelly Moller (DFL - Shoreview), would improve fee transparency in ticketing and prevent deceptive practices that negatively impact consumers who purchase tickets. The second, HF 3438, authored by Rep. Emma Greenman (DFL - Minneapolis), would ban the practice of junk fees.

HF 1989 was authored in part as a response to the Taylor Swift ticketing fiasco, where fans were charged exorbitant, surprising fees and many fans were prevented from purchasing tickets due to deceptive practices. The bill would require ticket sellers to disclose all aspects of the price of a ticket in a clear and concise manner, and regulate ticket sales by:

• Requiring the industry to display, up front, the total cost of the ticket, including all extra fees that must be paid to purchase the ticket
• Banning speculative ticketing where consumers are sold tickets that the reseller does not possess
• Preventing the use of bots and other unfair practices that keep tickets out of the hands of fans
• Prohibiting deceptive practices online that trick consumers into believing that they are purchasing from the venue or primary seller.

“In recent years the scales have been tipped against Minnesota consumers when it comes to buying tickets. With this bill, we are putting control into consumers' hands so they can make informed decisions about their purchases,” said Rep. Moller. “Once this bill becomes law, Minnesotans will be able to focus more on seeing their favorite band or team and less on getting gouged by predatory practices.”

HF 3438 would ban the practice of hidden and deceptive fees – also known as “junk fees” –  which cost the average Minnesota family more than $3,000 per year, but give them no additional value. Corporations charge junk fees simply because they have market power, and they can. Junk fees are also an anti-competitive business tactic, allowing corporations to pretend their products are cheaper than they are, thereby disadvantaging businesses that have honest, transparent pricing practices. HF 4348:

• Requires “all-in pricing”: The full price of the product, inclusive of all mandatory fees, must be disclosed at the beginning of the transaction and in any advertising. 
• Prevents the ubiquitous “service” and “convenience” charges that don’t align with any additional product or service. It does not tell businesses what to charge. 

“Almost everywhere in our economy Minnesotans are being nickeled and dimed, overcharged and underpaid. Junk fees are an abusive and anti-competitive way for corporations to hike prices at a time when many families are just trying to get by,” said Rep. Greenman. “This bill requires clear up-front and all-inclusive prices so that Minnesotans understand the true cost of what they are buying and can make informed decisions about the products and services they choose.”

Video of Thursday’s floor session is available on House Public Information Services YouTube channel.
 

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