Minnesota Joins The Fee Fray With A Twist On Variable Pricing

On May 20, Minnesota Gov. Tim Waltz signed the state's so-called junk fee bill into law. The law, similar to a proposed Federal Trade Commission rule and laws in other states, requires businesses to include all mandatory fees or surcharges in the advertised price. Mandatory fees include:

• A fee or surcharge that must be paid to complete the transaction
• A fee or surcharge that is not "reasonably avoidable" by the consumer
• A fee or surcharge that one would expect to pay when purchasing the goods or services advertised

Mandatory fees do not include taxes imposed by a government entity, such as a state tax on the purchase of goods. These requirements mirror the FTC's Proposed Rule we have previously discussed that targets similar fees. The law will take effect on January 1, 2025.