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SF3225 (Legislative Session 94 (2025-2026))

Food and beverage service establishments exemption from the mandatory fee advertisement requirement

Related bill: HF3039

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to adjust the existing laws concerning advertising requirements for food and beverage service establishments. Specifically, it seeks to exempt these businesses from the mandatory fee advertisement requirements that apply to other types of vendors.

Main Provisions

  • Deceptive Trade Practice Definition: The bill amends the definition of deceptive trade practices concerning advertisements that do not include all mandatory fees or surcharges in the listed price of goods or services. However, it clarifies that taxes imposed by a government entity are not included as mandatory fees in this context.

  • Food and Beverage Service Exemption: It allows food and beverage service establishments, such as restaurants, hotels, bars, and grocery stores, to exclude certain mandatory fee advertisements. These businesses are only required to clearly disclose the percentage of any automatic and mandatory gratuities charged in their advertisements.

  • Delivery Platforms Requirements: Delivery platforms must display additional fees clearly when a consumer selects items, and show a subtotal including those fees before checkout.

  • Exemptions for Specific Services: The bill lists exemptions for advertisements concerning auctions, services based on consumer selections, and certain technology services like broadband access, as long as they comply with federal regulations.

Significant Changes to Existing Law

The bill provides a specific exemption for food and beverage service establishments from including every mandatory fee or surcharge in advertised prices. Existing laws required that all mandatory fees, except taxes, be included in advertised prices for all vendors. This change acknowledges the standard practice in many food and beverage establishments of adding gratuities or other charges not included in the initial price listing.

Relevant Terms

  • Deceptive trade practice
  • Mandatory fees
  • Food and beverage service establishments
  • Gratuities
  • Advertisement exemptions
  • Delivery platforms
  • Grocery delivery services
  • Restaurants and hotels

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 01, 2025SenateFloorActionIntroduction and first reading
April 01, 2025SenateFloorActionIntroduction and first reading
April 01, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [
        "Inclusion of additional exemptions related to motor vehicle dealer fees."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill specifies exemptions from the deceptive trade practice rules for certain fees related to motor vehicle dealers as defined in section 168.27.",
      "modified": [
        ""
      ]
    },
    "citation": "168.27",
    "subdivision": "subdivision 1 paragraph f"
  },
  {
    "analysis": {
      "added": [
        "Provides a reference point for defining food concessions in the context of fee exemptions."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference used for defining food concessions in relation to exemptions under section 325D.44.",
      "modified": [
        ""
      ]
    },
    "citation": "157.15",
    "subdivision": ""
  }
]

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