Subdivision 1. Fraud, misrepresentation, deceptive practices. The act, use, or employment by any person of any fraud, false pretense, false promise, misrepresentation, misleading statement or deceptive practice, with the intent that others rely thereon in connection with the sale of any merchandise, whether or not any person has in fact been misled, deceived, or damaged thereby, is enjoinable as provided in section 325F.70.
Subd. 2. Referral and chain referral selling prohibited. (1) With respect to any sale or lease the seller or lessor may not give or offer a rebate or discount or otherwise pay or offer to pay value to the buyer or lessee as an inducement for a sale or lease in consideration of the buyer's or lessee's giving to the seller or lessor the names of prospective purchasers or lessees, or otherwise aiding the seller or lessor in making a sale or lease to another person, if the earning of the rebate, discount or other value is contingent upon the occurrence of an event subsequent to the time the buyer or lessee agrees to buy or lease.
(2)(a) With respect to any sale or lease, it shall be illegal for any seller or lessor to operate or attempt to operate any plans or operations for the disposal or distribution of property or franchise or both whereby a participant gives or agrees to give a valuable consideration for the chance to receive something of value for inducing one or more additional persons to give a valuable consideration in order to participate in the plan or operation, or for the chance to receive something of value when a person induced by the participant induces a new participant to give such valuable consideration including such plans known as chain referrals, pyramid sales, or multilevel sales distributorships.
(b) The phrase "something of value" as used in paragraph (a) above, does not mean or include payment based upon sales made to persons who are not purchasing in order to participate in the prohibited plan or operation.
(3) If a buyer or lessee is induced by a violation of this subdivision to enter into a sale or lease, the agreement is unenforceable and the buyer or lessee has the option to rescind the agreement with the seller or lessor and, upon tendering the property received, or what remains of it, obtain full or in the case of remains, a proportional restitution of all sums paid, or retain the goods delivered and the benefit of any services performed without any further obligation to pay for them.
(4) With respect to a sale or lease in violation of this section an assignee of the rights of the seller or lessor is subject to all claims and defenses of the buyer or lessee against the seller or lessor arising out of the sale or lease notwithstanding an agreement to the contrary, but the assignee's liability under this section may not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee. Rights of the buyer or lessee under this section can only be asserted as a matter of defense to or setoff against a claim by the assignee.
(5) In a sale or lease in violation of this section, the seller or lessor may not take a negotiable instrument other than a check as evidence of the obligation of the buyer or lessee. A holder is not in good faith if the holder takes a negotiable instrument with notice that it is issued in violation of this section.
(6) Any person who violates any provision of this subdivision shall be guilty of a gross misdemeanor.
Subd. 3. Advertising media excluded. Sections 325F.68 to 325F.70 shall apply to actions of the owner, publisher, agent or employee of newspapers, magazines, other printed matter or radio or television stations or other advertising media used for the publication or dissemination of an advertisement, only if the owner, publisher, agent, or employee has either knowledge of the false, misleading or deceptive character of the advertisement or a financial interest in the sale or distribution of the advertised merchandise.
Subd. 4. Solicitation of money for merchandise not ordered or services not performed. The act, use, or employment by any person of any solicitation for payment of money by another by any statement or invoice, or any writing that could reasonably be interpreted as a statement or invoice, for merchandise not yet ordered or for services not yet performed and not yet ordered, whether or not any person has in fact been misled, deceived, or damaged thereby, is enjoinable as provided in section 325F.70.
Subd. 5. Prohibited going out of business sales. It is illegal for any person to represent falsely that a sale is a "going out of business sale." Any representation that a sale is a "going out of business sale" is presumed to be false and illegal under this subdivision, if at that location or within a relevant market area:
(1) the sale has been represented to be a "going out of business sale" for a period of more than 120 days;
(2) the business has increased its inventory for the sale by ordering or purchasing an unusual amount of merchandise during the sale or during the 90 days before the sale began;
(3) the business, or any of its officers or directors, has advertised any other sale as a "going out of business sale" during the 120 days before this sale began; or
(4) the sale has continued after a date on which the business has represented, expressly or by reasonable implication, that the business would terminate.
Any presumption arising under clauses (1) to (4) may be rebutted if the business shows, by clear and convincing evidence, that the sale was in fact conducted in anticipation of the imminent termination of the business. This subdivision does not apply to a sale in any statutory or home rule charter city that by ordinance requires the licensing of persons conducting a "going out of business sale," nor to public officers acting in the course of their official duties.
Subd. 6. Deceptive use of financial institution name. No person shall include the name, trade name, logo, or tagline of a financial institution as defined in section 49.01, subdivision 2, in a written solicitation for financial services directed to a customer who has obtained a loan from the financial institution without written permission from the financial institution, unless the solicitation clearly and conspicuously states that the person is not sponsored by or affiliated with the financial institution, which shall be identified by name. This statement shall be made in close proximity to, and in the same or larger font size as, the first and most prominent use or uses of the name, trade name, logo, or tagline in the solicitation, including on an envelope or through an envelope window containing the solicitation. For purposes of this section, the term "financial institution" includes a financial institution's affiliates and subsidiaries. This subdivision shall not prohibit the use of a financial institution name, trade name, logo, or tagline of a financial institution if the use of that name is part of a fair and accurate comparison of like products or services.
1963 c 842 s 2; 1969 c 739 s 1; 1969 c 1100 s 1; 1971 c 391 s 1; 1973 c 454 s 1; 1975 c 364 s 3; 1985 c 148 s 3; 1986 c 444; 2004 c 228 art 1 s 56,57; 2005 c 118 s 17
Structure Minnesota Statutes
Chapters 324 - 341 — Trade Regulations, Consumer Protection
Chapter 325F — Consumer Protection; Products And Sales
Section 325F.01 — Asbestos Used In Building And Remodeling.
Section 325F.015 — Unsafe Bleachers.
Section 325F.02 — Manufacture, Storage, Or Sale Of Matches.
Section 325F.03 — Flame Resistant Public Assembly Tents.
Section 325F.04 — Flame Resistant Tents And Sleeping Bags.
Section 325F.06 — Civil Penalties.
Section 325F.07 — Criminal Penalty.
Section 325F.071 — Flame-retardant Chemicals; Prohibition.
Section 325F.072 — Firefighting Foam.
Section 325F.075 — Food Packaging; Pfas.
Section 325F.08 — Importation, Manufacture, Sale Or Distribution Of Hazardous Articles.
Section 325F.09 — Definitions.
Section 325F.10 — Banning Of Hazardous Articles; Rules.
Section 325F.11 — Testing Of Articles To Determine And Insure Compliance.
Section 325F.12 — Repurchase Of Banned Articles.
Section 325F.13 — Banned Hazardous Toys; Prohibitions.
Section 325F.135 — Unsafe Recalled Toys; Prohibition On Sale.
Section 325F.14 — Hazardous Toys; Seizure.
Section 325F.15 — Commissioner's Right Of Access To Premises, Records.
Section 325F.171 — Crib Safety.
Section 325F.172 — Definitions.
Section 325F.173 — Bisphenol-a In Certain Children's Products.
Section 325F.174 — Bisphenol-a In Children's Food Containers.
Section 325F.175 — Bisphenol-a Replacement Chemicals.
Section 325F.176 — Definitions.
Section 325F.177 — Formaldehyde In Children's Products; Ban.
Section 325F.178 — Formaldehyde Replacement Chemicals.
Section 325F.179 — Enforcement.
Section 325F.18 — Duty Of Manufacturer.
Section 325F.181 — Formaldehyde Product Standard.
Section 325F.185 — Electric Vehicle Infrastructure.
Section 325F.19 — Home Insulation; Consumer Protection; Definitions.
Section 325F.20 — Specifications For Manufacture, Labeling, And Installation Of Insulation.
Section 325F.21 — Testing Of Insulation.
Section 325F.22 — Unfair And Deceptive Advertising Practices.
Section 325F.23 — Marking, Labeling, And Consumer Information.
Section 325F.24 — Enforcement; Penalties.
Section 325F.245 — Landscape Application Contracts.
Section 325F.25 — Definitions.
Section 325F.26 — Use Of Secondhand Material Forbidden In Certain Cases.
Section 325F.27 — Sale Of Bedding.
Section 325F.28 — Material Must Be Renovated.
Section 325F.29 — Sales Forbidden; Exceptions; Penalties.
Section 325F.30 — Shoddy Material To Be Labeled.
Section 325F.31 — Bedding To Be Labeled.
Section 325F.32 — Feathers To Be Renovated.
Section 325F.34 — Testimony; Production Of Books And Documents.
Section 325F.35 — Definitions.
Section 325F.36 — Manufacture And Sale Of Cotton Duck Or Canvas; Stamps, Brands, And Marks.
Section 325F.37 — Certain Sales Unlawful; Misstatements Forbidden.
Section 325F.39 — Unlawful To Deface Mark.
Section 325F.40 — Violations; Penalties.
Section 325F.41 — Testimony; Production Of Books And Documents.
Section 325F.42 — Fraud In The Sale Of Fur Wearing Apparel.
Section 325F.43 — Imitation Indian-made Goods To Be Branded.
Section 325F.45 — Goods Not To Be Sold Without Brand.
Section 325F.47 — Misrepresentation Of Blind-made Articles Or Products.
Section 325F.48 — Prison-made Goods Are Subject To Laws Of State.
Section 325F.51 — Operation Of Airport Foreign Currency Exchanges.
Section 325F.53 — Retail Merchandise; Price Marking.
Section 325F.55 — Local Ordinance Preempted.
Section 325F.56 — Definitions.
Section 325F.57 — Service Calls.
Section 325F.61 — Return Of Property.
Section 325F.62 — Required Shop Practices.
Section 325F.63 — Remedies; Penalties.
Section 325F.65 — Preemption By State.
Section 325F.662 — Sale Of Used Motor Vehicles.
Section 325F.664 — New Motor Vehicle Damage Disclosures.
Section 325F.6641 — Disclosure Of Vehicle Damage.
Section 325F.6642 — Title Branding.
Section 325F.6643 — Remedies; Penalties.
Section 325F.665 — New Motor Vehicle Warranties; Manufacturer's Duty To Repair, Refund, Or Replace.
Section 325F.6651 — Definitions.
Section 325F.6652 — Notice To Consumer.
Section 325F.6653 — Manufacturer's Duty To Repair.
Section 325F.6654 — Manufacturer's Duty To Refund Or Replace.
Section 325F.6655 — Extension Of Warranty.
Section 325F.6656 — Alternative Dispute Settlement.
Section 325F.6657 — Affirmative Defenses.
Section 325F.6658 — Limitation On Actions.
Section 325F.6659 — Remedy Nonexclusive.
Section 325F.666 — Unlawful Reassignment Of Certain Motor Vehicle Contracts.
Section 325F.6670 — Equipment Required At Time Of Sale.
Section 325F.67 — False Statement In Advertisement.
Section 325F.675 — Fraud Related To Consumer Telephone Records.
Section 325F.68 — Definitions.
Section 325F.69 — Unlawful Practices.
Section 325F.691 — Unreasonable Delay In Mortgage Loan Closing.
Section 325F.692 — Fraudulent Telephone Services; Billing.
Section 325F.693 — Fraudulent Telephone Services; Slamming.
Section 325F.694 — False Or Misleading Commercial Electronic Mail Messages.
Section 325F.696 — Liability For Unauthorized Use Of Cellular Telephones.
Section 325F.697 — Live Check Solicitation Prohibited.
Section 325F.698 — Smartphone Antitheft Protection.
Section 325F.71 — Senior Citizens And Disabled Persons; Additional Civil Penalty For Deceptive Acts.
Section 325F.72 — Disclosure Of Special Care Status Required.
Section 325F.721 — Provision Of "i'm Okay" Check Services.
Section 325F.722 — Consumer Protections For Exempt Settings.
Section 325F.73 — Fraudulent Sale Of Gold And Silver; Penalty.
Section 325F.731 — Definitions.
Section 325F.733 — License; Application; Terms And Conditions.
Section 325F.734 — Identification Of Sellers.
Section 325F.735 — Records Required.
Section 325F.736 — Required Holding Period.
Section 325F.737 — Additional Holding Period.
Section 325F.739 — Certain Purchases Prohibited.
Section 325F.741 — Payment By Check.
Section 325F.742 — Governmental Subdivisions May Regulate.
Section 325F.743 — Criminal Penalty.
Section 325F.744 — Civil Penalty.
Section 325F.755 — Prize Notices And Solicitations.
Section 325F.76 — Definitions.
Section 325F.77 — Promotional Distribution.
Section 325F.781 — Requirements; Tobacco Product Delivery Sales.
Section 325F.783 — Auto Glass Repair Or Replacement.
Section 325F.784 — Prescription Drug Discounts.
Section 325F.785 — Sales Of Hiv Home Collection Kits And Hypodermic Syringes And Needles.
Section 325F.79 — Definitions.
Section 325F.791 — Sales Of Dogs And Cats.
Section 325F.792 — Additional Penalties.
Section 325F.795 — Unauthorized Possession Of Merchandise Pallets.
Section 325F.80 — Retail Sales Of Consumer Goods; Refunds.
Section 325F.81 — Replica Firearms; Warning Label.
Section 325F.82 — Definitions.
Section 325F.83 — Regulation Of Automatic Garage Door Opening Systems.
Section 325F.84 — Definitions.
Section 325F.85 — Application Of Other Law.
Section 325F.86 — Disclosures.
Section 325F.87 — Form Requirements.
Section 325F.88 — Advertising.
Section 325F.90 — Lessee's Reinstatement Rights.
Section 325F.91 — Prohibited Practices.
Section 325F.92 — Lessor's Communications Concerning Lessee.
Section 325F.93 — Early Purchase Option.
Section 325F.94 — Claims And Defenses.
Section 325F.95 — Liability; Liability Damage Waiver.
Section 325F.96 — Exempted Transaction.
Section 325F.97 — Penalties And Remedies.
Section 325F.981 — Check Cashing Practices.
Section 325F.982 — Consumer Identification Information.
Section 325F.985 — Definitions.
Section 325F.986 — Exclusivity Agreements.
Section 325F.987 — Limitation On Actions.
Section 325F.988 — Nonapplication.
Section 325F.99 — Telephone Calls; Fees; Long-distance Carriers; Notice.
Section 325F.991 — 911 Emergency Phone Service Representations.
Section 325F.992 — Prohibition Of Assignment Of Military Pay Or Military Benefits.