Which fees can a Minnesota business leave out of the advertised price?
Quick answer
Only taxes a government imposes on the sale, and a reasonable shipping or postage fee the customer actually incurs for goods that need shipping. Any other fee the customer must pay, cannot reasonably avoid, or would expect to be included has to be in the advertised price (Minn. Stat. 325D.44, subd. 1a). Delivery apps, auctions and services priced by distance or time have their own disclosure rules.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Main rule | Advertising, displaying or offering a price that does not include all mandatory fees or surcharges is a deceptive trade practice (subd. 1a(a)) | Official source |
| Mandatory fee | A fee or surcharge that must be paid to buy, is not reasonably avoidable, or that a reasonable person would expect to be included (subd. 1a(b)) | Official source |
| Can be left out | Taxes imposed by a government on the sale, use, purchase, receipt or delivery (subd. 1a(b)); a reasonable postage or shipping fee actually incurred for goods that require shipping (subd. 1a(d)) | Official source |
| Delivery apps | Show the extra flat fee or percentage, with its amount, when the customer picks a vendor or items, then an itemized subtotal before checkout (subd. 1a(c)) | Official source |
| Restaurants and hotels | Compliant if every priced offer or ad clearly discloses the percentage of any automatic and mandatory gratuities (subd. 1a(h)) | Official source |
| Price depends on choices, distance or time | Disclose the factors, any mandatory fees, and that the total may vary (subd. 1a(g)); auctions: disclose mandatory fees and that the total may vary (subd. 1a(f)) | Official source |
| Exempt | Fees authorized by law that motor vehicle dealers charge; businesses regulated by the Minnesota Public Utilities Commission; real estate settlement services, but not broker commissions (subd. 1b) | Official source |
| Origin | Subdivisions 1a and 1b were added by Laws 2024, chapter 111 (subd. 1a amended in 2025) | Official source |
| Last verified | October 24, 2026 | Astor Ventures |
Can I add a handling fee on top of shipping?
The shipping carve-out covers a reasonable postage or shipping fee that is actually incurred for a good that requires shipping. A separate handling or processing fee the customer must pay is not in that carve-out, so it belongs in the advertised price.
How do delivery apps comply?
At the moment a customer views and selects a vendor or items, the app must clearly show that an extra flat fee or percentage applies, and its amount. After items are selected and before checkout, it must show a subtotal page itemizing the menu prices and the extra fee included in the total.
Can I still run discounts?
Yes. Nothing in subdivision 1a stops a business from offering a lower price than the one it advertised (subd. 1a(e)).
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What else do people ask?
Are sales taxes part of the advertised price?
No. Taxes imposed by a government entity on the sale are excluded from "mandatory fee".
Is there a separate fine in subdivision 1a?
Subdivision 1a makes the practice a deceptive trade practice and sets no dollar fine itself. See our Minnesota junk fee penalty guide.
Do car dealers have to include doc fees?
Fees authorized by law that motor vehicle dealers charge for a purchase or lease are exempt from subdivision 1a (subd. 1b(1)).
Is this legal advice?
No. General information only.
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