AI Generated Summary
The Fair Competition Act is a consumer protection bill introduced in the Minnesota Senate that aims to regulate monopoly and monopsony power, prohibit price fixing, price discrimination, and excessive price increases, and strengthen enforcement mechanisms. Key provisions include:
Definitions and Regulation of Market Power:
- Defines monopoly power as the ability to control prices or exclude competition.
- Defines monopsony power as the ability of a single buyer to control demand and pricing.
- Prohibits the establishment, maintenance, or use of monopoly or monopsony power to control competition or prices.
Prohibited Practices:
- Bans contracts, conspiracies, or combinations that fix prices, limit production, allocate markets, or restrain competitive bidding.
- Criminalizes aiding and abetting violations of these prohibitions.
Penalties and Enforcement:
- Individuals violating the act face civil fines up to $100,000 per violation; corporations face fines up to $5 million per violation, depending on revenue.
- Willful violations result in felony charges, with penalties up to $50,000 per violation and seven years of imprisonment.
- Grants enforcement authority to the Minnesota Attorney General.
Unconscionably Excessive Pricing:
- Prohibits price increases exceeding 10% above past 30-day averages or local market prices.
- Allows exceptions for price increases justified by documented cost increases.
- Sets civil penalties up to $10,000 per violative sale or transaction.
Statute of Limitations:
- Establishes a four-year window for legal action, starting from when the violation was discovered or the last violation occurred.
Overall, this bill strengthens Minnesota's laws against anti-competitive behaviors and price gouging, increasing regulatory oversight and penalties for violations.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2025 | Senate | Floor | Action | Introduction and first reading | |
| February 26, 2025 | Senate | Floor | Action | Referred to | Commerce and Consumer Protection |
| March 05, 2025 | Senate | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Subdivisions for 'Monopoly power' and 'Monopsony power' are added, defining these terms."
],
"removed": [],
"summary": "Minnesota Statutes section 325D.50 is amended to include new definitions of monopoly and monopsony power.",
"modified": []
},
"citation": "325D.50"
},
{
"analysis": {
"added": [
"Clarification that evidence of procompetitive effects is not a defense for using monopoly or monopsony power."
],
"removed": [],
"summary": "Amendments to the conditions that establish or maintain monopoly or monopsony power in trade.",
"modified": []
},
"citation": "325D.52"
},
{
"analysis": {
"added": [
"Subdivisions related to aiding and abetting were added to the statute."
],
"removed": [],
"summary": "Amendments to section 325D.53 regarding price fixing and market allocation.",
"modified": []
},
"citation": "325D.53"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This statute specifies the scope of applicability for trade regulations under sections 325D.49 to 325D.66.",
"modified": [
"Language specifying the geographical application and conditions affecting trade."
]
},
"citation": "325D.54"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amendments modify the civil and criminal penalties for violations of sections 325D.49 to 325D.66.",
"modified": [
"Changes to penalty amounts based on revenue brackets for violators."
]
},
"citation": "325D.56"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 8.31 is referenced regarding the enforcement action by the attorney general.",
"modified": []
},
"citation": "8.31"
}
]