Governor Signs Bill to Eliminate Junk Fees, Mandating Full Disclosure in Advertising

(KNSI) — Minnesota Governor Tim Walz has signed a measure to eliminate junk fees by requiring companies to disclose all mandatory fees in their product advertising.

Everywhere, except for metro airports, must comply with the rule by next June. It actually goes into effect on January 1st.

The bill mandates that the full price of a product, including all mandatory fees, be disclosed at the start of the transaction and in all advertising. It also prevents charges that do not correspond to any additional product or service. Mandatory gratuity for large parties can still be collected because that money goes directly to employees and not to the employer, but the percentage must be disclosed upfront. What they can’t do is tack on extra fees for employee benefits.

According to proponents of the bill, hidden fees and surcharges cost the average family around $3,000 a year. Governor Walz said the junk fees had to end after everything from food delivery apps to hotel proprietors to event tickets socked consumers with convenience and handling fees, leading to eye-popping totals once it came time to pay.

“Minnesotans value transparency, which is why we’re putting an end to junk fees on everything from food and entertainment to hotels and credit cards. This bill will protect Minnesotans’ finances, provide clarity for consumers, and prevent companies from using deceptive practices to exploit customers.”

The bill does not apply to taxes or shipping charges, and exemptions for motor vehicle sales, real estate or utilities are built in.

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