Effective January 1, 2025, individuals and businesses must include all mandatory fees or surcharges in the advertisement, display, and offer of a price for any goods or services. This Minnesota law requires any fees or surcharges that (1) must be paid in order to purchase the goods or services being advertised, (2) are not reasonably avoidable by the consumer (e.g., late fees for equipment rentals, charges for smoking in a hotel room, or credit card surcharges), or (3) a reasonable person would expect to be included in the purchase of the goods or services being advertised, to be included in the advertised, displayed, and offered price of goods or services.

The law includes specific obligations for services where the total amount is based on consumer selections and preferences, online retailers, goods and services offered by auction, and food and beverage establishments.

What fees and surcharges are not required to be included in the total price?

1. Government-imposed taxes, e.g., sales tax.
2. Fees authorized by law and related to the purchase or lease of a motor vehicle charged by the motor vehicle dealer.
3. Businesses or affiliates regulated by the Minnesota Public Utilities Commission.
4. Fees, surcharges, or other costs associated with real estate settlement services, excluding real estate broker commissions and fees.

Penalties for Noncompliance

Failure to comply may result in an investigation into your business’s practices by the Attorney General, civil penalties of up to $25,000 per violation, and costs and disbursements, including costs of investigation and any reasonable attorneys’ fees.

What do you need to do before January 1, 2025?

1. Determine whether and how this new law applies to you and your business.
2. Adjust your pricing strategy to be compliant.
3. Update any pricing offers, advertisements, or displays.

If you are unsure whether or how this new law applies to you, contact us to help you become compliant before January 1, 2025.