Gov. Walz signs bill eliminating junk fees

(ABC 6 News) – Governor Tim Walz signed a bill today that will eliminate junk fees by requiring companies to disclose mandatory fees in product advertising.

The bill has similarities to a bill that Gov. Walz signed recently that eliminates hidden added costs to tickets for concerts and other events and requires customers to be shown the full price at the beginning of the transaction.

Junk fees are considered additional charges at the end of a transaction, including processing and convenience fees, but they do not include tax. Failing to disclose these fees will be considered a deceptive trade practice under the new law.

“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,” said Governor Walz. “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 new junk fees law will go into effect on Jan. 1, 2025. It will be applied to several areas of commerce, such as credit cards, restaurant meals, and hotels.