‘Junk fees’ law requires advertised prices to include all mandatory fees or surcharges

When the calendar turns to 2025, a person or business will be prohibited from advertising, displaying, or offering a price for goods or services that does not include all mandatory fees or surcharges.

This includes, but is not limited to, a fee or surcharge that must be paid to purchase the goods or services being advertised, is not reasonably avoidable by the consumer, or a reasonable person would expect to be included in the purchase of the goods or services being advertised.

Government-imposed taxes, such as sales taxes, are not subject to the mandated disclosure requirements.

For online retail, when a consumer views and selects either a vendor or items for purchase, a delivery platform must, prior to checkout, display in a clear and conspicuous manner that an additional flat fee or percentage will be charged.

A person or business offering services where the total cost is determined by consumer selections and preferences, or where the total cost of the service relates to distance or time, must clearly disclose all factors that determine the total price, mandatory fees associated with the transaction, and a statement that the total cost of the services may vary.

The law permits a person or business to charge a reasonable postage or shipping fee and to offer goods or services at a discounted price.

Exemptions to the law include fees authorized by law related to the purchase or lease of a motor vehicle that are charged by a motor vehicle dealer, fees added by a business or the business’ affiliate where either the business or the affiliate is regulated by the Minnesota Public Utilities Commission, or any fees, surcharges, or other costs associated with real estate settlement services, except for real estate broker commissions and fees.

Rep. Emma Greenman (DFL-Mpls) and Sen. Lindsey Port (DFL-Burnsville) sponsor the law that mostly takes effect Jan. 1, 2025. Provisions affecting industries where the prices are regulated by the Metropolitan Airports Commission take effect June 1, 2025.

HF3438*/SF3537/CH111

HF3438* / SF3537 / CH111