As billions of people begin the New Year, Minnesota businesses are preparing for new state laws taking effect. The Price Transparency Law requires hotels, restaurants and other businesses to include all mandatory fees and surcharges. These costs are usually not shown with the advertised price businesses have for their goods or services.

Minnesota Representative Emma Greenman (DFL District 63-B) says businesses showing these hidden fees will help consumers have a better idea, as to what they’re actually paying for.

“These junk fees have become impossible to avoid and leave consumers frustrated, confused and unable to comparison shop to find the right deal for the right price,” Rep. Greenman said. “They’re driving up prices for Minnesotans. On average households spend over $3,000 annually for junk fees that artificially inflate prices without offering any tangible benefits. This bill ends that practice by requiring that any mandatory fee or surcharge that has to be included in the advertised or list price for the goods or services.”

The Price Transparency Law doesn’t change the current prices of goods or services businesses provide. Matt Keliher, a State and Local Policy Specialist with the American Economic Liberties Project, says according to their research, “junk fees” raise prices by as much as 20 percent on goods and services. 

“They’re also levied on hotel reservations, cable and phone bills, rental housing, storage unit, food delivery services and more,” Keliher said. “These fees are tacked on near the end of transactions without consumers prior knowledge nor consent, drastically altering the final price of a product or service from the price that was initially advertised.”

Some restaurants have implemented changes. Some diners include a group fee for groups exceeding eight or more people. Jill Sims, the former Director of Government Relations at Hospitality Minnesota, says businesses need guidance and time to readjust to the new state law.

“Diners have come to expect them in many experiences like large groups, delivery, and when using a credit card. Providing guidance and implementation time to Minnesota restaurants should their current models change is imperative,” Sims said. “We believe price transparency is important for all lodging bookings and we hope to see parity across platforms like hotel websites, online travel agencies, meta search sites, and short-term rentals.”

Earlier this year, Minnesota legislators also created bipartisan legislation to create the Ticketing Fairness Act. This is in response to last year’s fiasco with Ticketmaster and the handling of Taylor Swift’s Eras tours. This new law bans speculative ticketing. The process that ticket resellers use, to sell tickets, that haven’t even been on sale, and the resellers don’t have in their possession.

Minnesota Representative Kelly Moller (DFL-Shorewood District 40a) says the Ticketing Fairness Act will provide better consumer protections. The law states websites must display whether or not they are a third party sellers for ticket sales. Along with what are the actual price of tickets.

“This really will allow the consumer to know upfront when they look for tickets what the total cost is. They’re not going to have to wait till the end to figure that out. It ensures that consumers will receive proof of purchase within 24 hours and will be told of the refund policy. It prevents the use of deceptive websites that trick consumers into thinking they belong to the actual venue.”

The Ticketing Fairness Act also prohibits the use of bots to purchase tickets. Along with other unfair practices that puts tickets in the hands of scalpers over consumers.