Minnesota Consumer Protection Laws Guide

Minnesota provides robust consumer protection through the Consumer Fraud Act (Minn. Stat. § 325F.69) and the Unlawful Trade Practices Act (Minn. Stat. § 325D.09-16). Together, these laws give consumers strong tools to fight deceptive business practices.

This guide covers Minnesota's Consumer Fraud Act, security deposit rules including the 21-day deadline and interest requirements, landlord-tenant law, lemon law protections, and how to file claims in conciliation court.

The Consumer Fraud Act

Minnesota Statute § 325F.69 prohibits:

• Fraud, false pretense, or false promise
• Misrepresentation, deceptive act, or deceptive practice
• Use of false, misleading, or deceptive advertising
• Any act that has the capacity to deceive

Key Elements

To prove a Consumer Fraud Act claim:

1. The defendant made a misrepresentation or deceptive act
2. In connection with the sale of merchandise
3. You relied on the misrepresentation
4. You suffered damages as a result

What You Can Recover

• Actual damages: What you lost
• Attorneys fees: If you prevail
• Costs and disbursements: Filing fees and expenses
• Injunctive relief: Court order to stop the conduct

Minnesota Security Deposits

Minnesota Statute § 504B.178 provides strong tenant protections:

Key Rules

• No statutory limit: But must be reasonable
• Interest required: 1% annual interest on deposits over $100
• Return deadline: 21 days with deductions, 3 weeks if no forwarding address
• Itemization: Written list required with any deductions

Return Timeline

• With forwarding address: 21 days
• Without forwarding address: 21 days, but landlord only liable after you request
• Bad faith withholding: Landlord liable for up to twice the amount wrongfully withheld

Automatic Forfeiture

Landlord forfeits the right to withhold if they:

• Fail to provide written statement of deductions
• Fail to return deposit within 21 days
• Fail to pay required interest

Minnesota Landlord-Tenant Law

Covenants of Habitability

Minnesota landlords must provide and maintain:

• Weathertight premises
• Adequate heat (at least 68°F October-April)
• Hot and cold running water
• Working plumbing and electricity
• Compliance with housing codes
• Reasonable security
• Smoke and carbon monoxide detectors

Tenant Remedies

If repairs aren't made:

1. Give written notice to landlord
2. Allow reasonable time for repairs
3. If not repaired, options include:
   • Rent escrow (deposit rent with court)
   • Repair and deduct (under $500 or half month's rent)
   • Terminate lease for serious violations
   • Sue for damages

Minnesota Lemon Law

The Minnesota Lemon Law (Minn. Stat. § 325F.665) covers new vehicles:

• Coverage: First 2 years or 20,000 miles
• Four repair attempts or 30 business days out of service
• Manufacturer must refund or replace
• Informal dispute resolution available

Auto Fraud Protections

Minnesota law requires:

• Odometer disclosure
• Salvage title disclosure
• Written warranty disclosure
• Accurate mileage statements

Door-to-Door Sales

For purchases made at your home:

• Three-day right to cancel
• Seller must provide cancellation form
• Oral contracts also covered
• Full refund required within 10 days of cancellation

Filing a Lawsuit

Conciliation Court (Small Claims)

• Limit: $15,000
• Filing fee: $75-$90
• Where to file: County where defendant resides or injury occurred
• Lawyers: Not allowed except corporations

District Court

For larger claims:

• No damage cap
• Attorney representation allowed
• More formal procedure
• Can recover attorney fees

Minnesota Attorney General

The AG's Consumer Protection Division:

• Handles consumer complaints
• Mediates disputes
• Brings enforcement actions
• Provides consumer education

Demand Letter Strategy

Your Minnesota demand letter should include:

1. Facts of the transaction
2. How the business acted deceptively
3. Citation to Minn. Stat. § 325F.69
4. Your actual damages
5. Notice of attorney fee recovery
6. Deadline to respond (14 days typical)
7. Intent to file in conciliation court

Minneapolis/St. Paul Considerations

The Twin Cities area may have:

• Additional local ordinances
• Tenant protection programs
• Stronger rent stabilization policies
• Active legal aid organizations

Statute of Limitations

• Consumer Fraud Act: 6 years
• Security deposits: 6 years
• Contract claims: 6 years

Minnesota Consumer Resources

These Minnesota agencies and resources can help with consumer disputes:

• Minnesota Attorney General Consumer Division — Files complaints, mediates disputes, and provides consumer education
• Minnesota Conciliation Court — Small claims forms, procedures, and filing information
• LawHelpMN — Free legal information and referrals for Minnesota residents
• HOME Line — Free tenant hotline and legal assistance for Minnesota renters

Frequently Asked Questions

Does Minnesota require landlords to pay interest on security deposits?

Yes. Under Minn. Stat. § 504B.178, landlords must pay 1% annual simple interest on security deposits exceeding $100. The interest accrues from the date the deposit is received and must be paid when the deposit is returned. Failure to pay interest can result in the landlord forfeiting the right to retain any portion of the deposit.

What makes Minnesota's Consumer Fraud Act different from other states?

Minnesota's Consumer Fraud Act is broad—it prohibits any act that has the "capacity to deceive," meaning you don't have to prove intent to defraud. It also allows private lawsuits with attorney fee recovery, making it economically viable for consumers to pursue even smaller claims. The 6-year statute of limitations is also longer than many states.

What is conciliation court and how is it different from small claims?

Conciliation court is Minnesota's version of small claims court with a $15,000 limit. Unlike some states' small claims courts, Minnesota conciliation court does not allow lawyers except for corporations (who must be represented by an attorney). The process is informal, and decisions can be appealed to district court.

Can I recover double damages for a wrongfully withheld security deposit?

Yes, under certain circumstances. If your landlord acts in bad faith by wrongfully withholding your security deposit, Minnesota law allows you to recover up to double the amount wrongfully withheld, plus attorney fees. Bad faith includes ignoring the law's requirements or making deductions without basis.