This New Law Will Change the Way You Shop in Minnesota Forever

When the calendar flips to 2025, a new Minnesota law will change how businesses advertise their prices. Here's what you need to know about this change in pricing laws.

The law is designed to make pricing more straightforward by requiring businesses to include all mandatory fees or surcharges in advertised prices.

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The End of Unexpected Fess in Minnesota

This means businesses cannot advertise one price and then add fees that are unavoidable or unexpected. If a fee or surcharge must be paid to purchase a product or service, it must be included in the displayed price.

The goal is to eliminate confusion and give customers a clearer idea of what they will pay upfront. But, there are some exceptions.

Not Everything Needs to Be Shared

Government-imposed taxes, like sales tax, do not need to be included in advertised prices. For online purchases, delivery platforms must disclose any extra fees before checkout.

For services like rideshares or other businesses where costs depend on factors like time, distance, or consumer preferences, businesses must explain how prices are calculated. They also need to list any mandatory fees and make it clear that total costs can vary.

What Fees Are Still Allowed in Minnesota?

Businesses are still allowed to charge reasonable shipping fees and offer discounts. However, the advertised price must reflect the total cost, including mandatory fees. There are also exemptions for certain industries, like motor vehicle dealers, utilities regulated by the Public Utilities Commission, and some real estate-related fees.

When Does The New "Junk Fees" Law Start in Minnesota?

Rep. Emma Greenman and Sen. Lindsey Port, who sponsored the law, aim to protect consumers from hidden fees. Most of the new rules take effect on January 1, 2025. Specific provisions for businesses regulated by the Metropolitan Airports Commission will begin in June.

These changes should make shopping and service pricing more transparent for Minnesotans. By the start of the new year, businesses will need to adjust their practices to comply. Customers, in turn, can look forward to fewer surprises at checkout.