Minnesota Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Minnesota's lemon law covers new passenger cars, pickup trucks and vans (and the chassis of motor homes) used at least 40% for personal, family or household purposes. The manufacturer must repair defects reported during the express warranty or within two years of delivery, whichever is earlier. A reasonable number of attempts is presumed if the same defect was repaired four or more times and continues, the vehicle was out of service a total of 30 or more business days, or a braking or steering defect likely to cause death or serious injury continues after one repair attempt; the consumer must first give the manufacturer written notice and a chance to fix it. If the defect substantially impairs use or market value and is not fixed, the manufacturer must replace the vehicle or refund the full price (including taxes, fees, towing and rental costs), minus a use allowance of no more than 10 cents per mile or 10% of the price, whichever is less; the consumer may choose a refund. Consumers generally must first use the manufacturer's informal dispute program, and must sue within three years of delivery (or six months after the program's final decision).

Dealers selling used cars, pickups and vans for personal use must give a written warranty covering major parts (engine, transmission, drive axle, brakes, steering and some other parts). It lasts 60 days or 2,500 miles for cars under 36,000 miles; 30 days or 1,000 miles for 36,000 to under 75,000 miles; and 15 days or 500 miles for 75,000 to under 200,000 miles (this last tier does not apply to sales by new-car dealers). Exclusions include cars with 200,000 or more miles, cars sold for under $3,000 or eight or more model years old (unless they have 75,000 to under 200,000 miles), diesel vehicles, and salvage-titled vehicles. The law requires the warranty on covered sales; a consumer can waive coverage of a specific part only if the dealer discloses a defect in that part on the Buyers Guide and the consumer circles and signs the disclosure.

For a home solicitation sale with a purchase price over $25, the buyer may cancel until midnight of the third business day after the sale by giving the seller written notice at the address in the agreement. The notice does not need a particular form; any written statement that the buyer does not intend to be bound is enough, and a mailed notice is effective when mailed.

Minnesota law prohibits using fraud, unfair or unconscionable practices, false pretenses, misrepresentation or deceptive practices in connection with the sale of goods or services. Any person injured by a violation may sue to recover damages, plus costs, investigation costs and reasonable attorney fees, and other equitable relief.

If the customer asks, a repair shop must give a written estimate before starting repairs, and must tell the customer about any separate storage, service call or estimate charges. A shop may not charge more than 110% of the estimate unless it gives a revised written estimate and the customer authorizes the extra work. Shops may not charge for unauthorized repairs or do repairs they know are unnecessary. For repairs over $50, the customer must receive a dated, itemized invoice that states whether parts are new, used, rebuilt or reconditioned.

When the governor declares an abnormal market disruption tied to a state of emergency, sellers may not charge unconscionably excessive prices for essential goods and services such as food, water, fuel, shelter, construction materials, health care and medical and cleaning supplies. A price is unconscionably excessive if it is a gross disparity from the seller's average price in the 60 days before the declaration; prices no more than 25% above that average, or substantially related to cost increases, are not. The declaration ends 30 days after the emergency ends unless the governor sets an earlier date. Separate rules limit contractors' labor pricing after severe thunderstorms. Violations carry civil penalties of up to $1,000 per sale, up to $25,000 per day, enforced by the Attorney General; there is no private right to sue under this section.

It is illegal to sell a gift certificate or gift card that has an expiration date or any service fee, including a dormancy fee. Exceptions include free promotional or loyalty cards, cards sold at a discount for fundraising, employer-issued cards, prepaid calling cards, and bank-issued multi-store cards that disclose their expiration date and fees.

A seller must give a cash refund (or card credit) for goods that are acceptable for return, unless it clearly and conspicuously posts a written notice of a different policy on the premises in boldface type of at least 14 points. Goods are acceptable if returned in reasonable condition within a reasonable time with proof of purchase. The rule does not apply to home solicitation sales, custom or special orders, licensed vehicle dealers, or sales under a written contract. Violations can bring a civil penalty of up to $500 per violation.

Credit services (credit repair) organizations may not take any payment before fully completing the services they agreed to perform, charge fees just for referring a buyer to a retail creditor, advise buyers to make false statements about their credit, or use deceptive practices.

Residential building contractors and residential remodelers must be licensed by the state. Exemptions include owners improving their own home or rental property and specialty contractors with gross annual receipts of $15,000 or less who obtain a certificate of exemption. All agreements (bids, contracts, change orders) must be in writing, describe the work and materials, state the total price or how it will be calculated, include written performance guidelines, and be signed and dated by both sides, with a copy given to the customer at no charge.

A business that owns or licenses personal information must notify affected Minnesota residents in the most expedient time possible and without unreasonable delay after discovering a breach of unencrypted personal information (name plus Social Security number, driver's license or state ID number, or financial account number with access code). Delay is allowed for law enforcement or to determine the scope of the breach. Notice may be written, electronic, or in some cases substitute notice. If more than 500 people are notified at one time, the business must notify the nationwide consumer reporting agencies within 48 hours.

The Attorney General's office encourages filing a Consumer Assistance Request Form online (available in several languages). Its Consumer Action Division contacts businesses to try to resolve disputes voluntarily, though it cannot force a company to respond. You can also call (651) 296-3353 in the Twin Cities or (800) 657-3787 elsewhere in Minnesota.

1) Written notice: the presumption that the manufacturer had a reasonable number of repair attempts applies only if the manufacturer, its agent or its authorized dealer has received prior written notice from or on behalf of the consumer at least once and had an opportunity to fix the defect. A dealer or agent that receives the notice must forward it to the manufacturer by certified mail, return receipt requested. 2) Final repair attempt: no separate final-repair step is described beyond that opportunity to cure. 3) Arbitration: every manufacturer must run or take part in an informal dispute settlement program located in Minnesota that meets federal rules (16 C.F.R. Part 703). The consumer must use it before suing for refund or replacement, unless the manufacturer allows otherwise. Any consumer fee may not exceed the conciliation court filing fee in the county where the arbitration is held. Decisions are nonbinding unless the parties agree otherwise, and either party may take the case to district court for a new trial; a manufacturer must do so within 30 days after receiving the decision. Minnesota has no state-run arbitration program. 4) Deadline: a lawsuit must be started within three years after original delivery. If the consumer applied to the dispute program within those three years and is unhappy with the decision, the lawsuit must be started within six months after the program's final decision.