No More Hidden Fees at Minnesota Restaurants, Hotels, Shows

With more and more surprises showing up on our bills these days, the state of Minnesota has decided to do something about it.

Governor Tim Walz has signed into law a bill that will eliminate hidden fees in the North Star State.

House File 3438 bans the practice of those mandatory extra fees in the restaurant, hotel, and entertainment industries, calling them a 'deceptive trade practice'.

State officials estimate that those add-on charges cost the average Minnesota family more than $3,000 per year.

In a press release, Governor Walz said:

'Minnesotans value transparency, which is why we’re putting an end to junk fees on everything from food and entertainment to hotels and credit card fees. This bill is going to protect Minnesotans’ bottom line, provide clarity for consumers, and ensure companies aren’t using deceptive practices to rip their customers off.'

The law, which goes into effect January 1, 2025, requires that the full price of a product, including all mandatory fees, must be disclosed at the beginning of the transaction and in any advertising.

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Mandatory gratuities at restaurants will still be permitted under the new law if the proceeds from those tips go to employees, and customers are clearly advised of the surcharge before they order.

The bill faced some opposition in the Minnesota legislature before making it to the governor's desk, passing by a 70-61 vote in the House of Representatives and by a vote of 36-31 in the Senate.