Junk fees trashed next year in Minnesota

ST. PAUL, Minn. (FOX 9) - The price you see should be the price you pay by next year in Minnesota.

A legislative conference committee agreed to a bill Wednesday that would eliminate so-called "junk fees", those charges over and above the listed price when you go to restaurants, get delivery, or stay at a hotel.

What seemed like a $1,700 AirBnB reservation can end up costing you $2,100 after mandatory service and cleaning fees.

The same is often true with resort fees and other charges at hotels.

"A lot of hidden fees come up in all kinds of everyday purchases, and it can really mess with your finances," said Danny Socwell of St. Paul.

Some restaurants, delivery services, storage units, and a lot more businesses add fees on top of the advertised price you might’ve expected to pay.

"You never really know what you pay until you're done, quite frankly," said Pat McCoy of St. Paul.

Under the conference committee agreement on Wednesday, sellers have to include all mandatory fees or surcharges when they tell a customer the price of an item.

Legislators said the surprise fees cost an average Minnesota family of four about $3,000 a year, and they hurt competition, too.

"They harm local businesses that want to use transparent, honest pricing and therefore appear artificially more expensive than those corporations that rely on junk fees," said Matt Keliher of the American Economic Liberties Project.

"What seems like the cheapest option is actually coming from a place with hidden fees that are going to make it more expensive," said Socwell.

One fee a lot of people told us they don’t like is a credit card surcharge.

Those would still be legal as long as the business takes cash or debit cards without added fees.

"Let's say you are an online retailer and the only way you can pay is a credit card," said Rep. Emma Greenman, (DFL)-Minneapolis. "Then that should be baked into the price."

This bill is now expected to sail through the House and Senate and get signed by Gov. Tim Walz.

It would take effect in January of next year.