The state of Minnesota is still charging fees following new state transparency law
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Illustration: Brendan Lynch/Axios
While many businesses have changed their systems to comply with the new state ban on so-called "junk fees," the Minnesota DNR is still tacking on reservation fees to campsite reservations.
Why it matters: The move to force businesses to display the full price of goods and services up front was touted as a consumer-friendly law that would allow Minnesotans to have the actual cost of something and compare prices.
What we found: The Minnesota DNR is still adding an $8 "reservation fee" to book a campsite, so a $25 campsite becomes $33 upon checkout.
- The new law says it's a deceptive trade practice when someone offers a price for goods or services that doesn't include all mandatory fees and surcharges, while noting that these fees are allowed if they are "reasonably avoidable."
- DNR spokesperson Gail Nosek said in an email that the agency is not profiting from the charges, which help cover the cost of its online reservation system.
What they're saying: The House author of the bill, Rep. Emma Greenman (DFL-Minneapolis), said it appears what the DNR is doing could be a problem — but it's possible the campsite fee is compliant if the agency makes it clear that it allows people to show up and book a campsite in-person without the $8 fee.
- You don't have to pay the fee for same-day reservations, though that makes snagging a campsite in the summer virtually impossible because they are filled months in advance.
- The DNR, along with several other state agencies, charges a 3% "internet fee" for things like fishing and hunting licenses, but those fees can be avoided if people buy the licenses in person.
Zoom out: Airbnb, VRBO and local hotels and resorts have ditched service and resort fees following the state ban, Axios discovered via searches on those platforms.
- The Minneapolis Park & Recreation Board, as well as St. Paul Parks & Recreation, are no longer adding fees at the end of a transaction. Minneapolis is noting them as being part of the total price up-front, which is allowed.
- Flowbird, the city of Minneapolis' mobile parking app, now bakes in service fees to the posted price after previously adding fees at the end.
The bottom line: The Minnesota Attorney General's office sent out guidance for businesses and individuals on the new law, saying it will first ask those continuing to charge the banned fees for voluntary compliance.
- If they refuse, the office says it can investigate and pursue legal action that includes fines and restitution.
- Asked about the DNR fees, the AG's office said it wouldn't comment on the legality of something like that without conducting a thorough investigation