HF34 (Legislative Session 94 (2025-2026))
Fair Competition Act established, monopsony power regulated, price increases prohibited, price discrimination prohibited, enforcement authority provided, and civil and criminal penalties modified and established.
Related bill: SF2025
AI Generated Summary
The legislative bill introduced in Minnesota, titled the Fair Competition Act, seeks to enhance consumer protection by addressing and regulating the powers of monopolies and monopsonies in the market. Here's a breakdown of its main points:
Definition of Powers: The bill clearly defines what constitutes monopoly and monopsony power. A monopoly is when a single firm has enough control over a market to dictate prices and exclude competition, while a monopsony refers to a market condition with only one buyer, giving that buyer substantial market influence over price and demand.
Prohibitions: It makes it illegal for businesses to establish, maintain, or use monopoly or monopsony power to manipulate competition or control prices. Tactics like price-fixing, controlling production, and collusive bidding are deemed unlawful.
Enforcement and Penalties: The bill assigns strong enforcement powers and sets severe penalties for violations. These penalties vary by the scale of the business and the nature of the violation, ranging from monetary fines to potential imprisonment for individuals found willfully committing prohibited acts.
Scope of Application: This law will apply to any actions within Minnesota, and also extends to actions outside the state if they affect Minnesota’s trade and commerce.
Price Regulations: Specifically targets unethical pricing practices by defining "unconscionably excessive prices," particularly during times of market stress or when a business dramatically increases the price of goods or services without justification tied to increased costs.
Statute of Limitations: Legal actions under this statute must be initiated within four years from the date the cause of action arises, ensuring timely enforcement.
In summary, this bill aims to curb abusive practices by dominant buyers or sellers in the marketplace, ensuring fair competition and preventing exploitation of consumers and other businesses through strict regulations and significant penalties for violations.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
| February 12, 2025 | House | Floor | Action | Authors added | |
| February 16, 2025 | House | Floor | Action | Author added | |
| March 02, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"New subdivisions defining monopoly power and monopsony power."
],
"removed": [],
"summary": "This bill defines the concepts of monopoly power and monopsony within section 325D.50.",
"modified": []
},
"citation": "325D.50"
},
{
"analysis": {
"added": [
"Clarification that controlling, fixing, or maintaining prices using monopoly or monopsony power is unlawful."
],
"removed": [],
"summary": "This bill addresses the unlawful use of monopoly or monopsony power under section 325D.52.",
"modified": []
},
"citation": "325D.52"
},
{
"analysis": {
"added": [
"Addition of a subdivision addressing aiding and abetting violations of this section."
],
"removed": [],
"summary": "Amendments to section 325D.53 involve price fixing, production control, and related practices.",
"modified": []
},
"citation": "325D.53"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modifications to the scope of the act under section 325D.54 are made.",
"modified": [
"Language clarifications regarding contracts affecting trade or commerce in Minnesota."
]
},
"citation": "325D.54"
},
{
"analysis": {
"added": [
"Increased the maximum civil penalties applicable to individuals and corporations."
],
"removed": [],
"summary": "Changes in civil and criminal penalties related to section 325D.56.",
"modified": []
},
"citation": "325D.56"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section covers interpretation and effect of action time limits under section 325D.64.",
"modified": [
"Clarification on when a cause of action is considered to arise, including discovery of violation or last act in a series."
]
},
"citation": "325D.64"
},
{
"analysis": {
"added": [
"Mentions enforcement authority under section 8.31 for unconscionably excessive prices."
],
"removed": [],
"summary": "Reference to enforcement authority in section 8.31 regarding unconscionable pricing under section 325E.81.",
"modified": []
},
"citation": "8.31"
}
]