Minnesota House passes bill requiring businesses to include ‘junk fees’ in advertising

The Minnesota House of Representatives passed a bill Monday seeking to increase transparency around service fees.

Under the legislation, any business that does not disclose “mandatory fees or surcharges” as part of the advertised price of goods or services would be engaging in “a deceptive trade practice.”

RELATED: House committee hears testimony on bills to ban ‘junk fees’ for tickets, other purchases

These so-called “junk fees” are any extra costs that a consumer could not reasonably avoid when making a purchase that allows the seller to pass off products as less expensive than they actually are. Oft-cited examples include fees charged on ticketed events and food delivery apps.

The bill establishes specific rules for disclosing surcharges in delivery platforms, bars and restaurants and auctions, as well as transactions in which the subtotal is determined by consumer selections or factors such as time and distance.

The conference committee bill passed the House by a 76-57 vote. If it gains passage in the Senate, it will go to Gov. Tim Walz for final approval.