SF3225 (Legislative Session 94 (2025-2026))

Food and beverage service establishments exemption from the mandatory fee advertisement requirement

Related bill: HF3039

AI Generated Summary

Purpose

The bill aims to amend current Minnesota laws to provide an exemption for food and beverage service establishments from the requirement to advertise mandatory fees or surcharges. It seeks to simplify the pricing display requirements for these establishments.

Main Provisions

  • Mandatory Fee Advertisement: Establishments are generally required to include all mandatory fees or surcharges in the advertised price of goods or services, which must be clearly disclosed. A mandatory fee includes any charge that must be paid to purchase the goods or services, cannot be avoided, or is expected by a reasonable person to be included in the price.

  • Exemption for Food and Beverage Services: This bill provides an exemption for individual food or beverage items sold directly to consumers. This includes sales by restaurants, hotels, bars, food concessions, grocery stores, and through grocery delivery services.

  • Disclosure Requirements: Establishments like hotels can comply if their advertisements contain a clear and conspicuous disclosure of automatic and mandatory gratuities.

  • Banquet or Catering Services: These services can remain compliant if they clearly disclose the purpose and amount of any mandatory fees in their advertising materials, complying with FDA typesize requirements.

Significant Changes

  • The bill adds an exemption for food and beverage service establishments to the requirement that advertisements include all mandatory fees or surcharges. This change would affect how prices are displayed in establishments such as restaurants and hotels, and their advertisements would not need to include certain fees, simplifying their compliance requirements.

Relevant Terms

  • Deceptive trade practice
  • Mandatory fee
  • Consumer protection
  • Advertising requirements
  • Food and beverage services
  • Exemptions
  • Gratuities
  • Pricing transparency

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifications on mandatory fee definition in advertisements.",
        "Specific compliance conditions for various service providers, including food and beverage service establishments."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes section 325D.44, subdivision 1a, regarding deceptive trade practices and the advertisement of fees.",
      "modified": [
        "Revised conditions under which different businesses must disclose additional fees in advertisements."
      ]
    },
    "citation": "325D.44",
    "subdivision": "subdivision 1a"
  },
  {
    "analysis": {
      "added": [
        "Exemptions for individual food or beverage items sold by restaurants, hotels, bars, and other specified entities."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends Minnesota Statutes section 325D.44, subdivision 1b, related to exemptions from deceptive trade practice rules.",
      "modified": [
        "Clarifications on types of entities and transactions exempt from certain advertisement regulations."
      ]
    },
    "citation": "325D.44",
    "subdivision": "subdivision 1b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 168.27, subdivision 1, defining motor vehicle dealers.",
      "modified": []
    },
    "citation": "168.27",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References definition of food concession as per Minnesota Statutes section 157.15.",
      "modified": []
    },
    "citation": "157.15",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Exemption clause references the Real Estate Settlement Procedures Act under United States Code title 12, section 2602.",
      "modified": []
    },
    "citation": "12 U.S.C. § 2602",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors