Minnesota Enacts Provisions Regarding Consumer Protection in Advertising

Minnesota recently enacted provisions that establish a person as engaging in a deceptive trade practice when the person advertises a price for goods or services that does not include all mandatory fees or surcharges.  Mandatory fee includes but is not limited to a fee​ or surcharge that (1) must be paid in order to purchase the goods or services being advertised;​ (2) is not reasonably avoidable by the consumer; or (3) a reasonable person would expect to be included in the purchase of the goods or​ services being advertised.  However, mandatory fee does not include government taxes.

Notably, fees, surcharges, and other costs associated with settlement services as defined by RESPA are excluded from the new requirement, save for real estate broker commissions and fees.

The new provisions are generally effective January 1, 2025.