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Can I offer a freemium version of my product or service in Minnesota? What are the requirements?

Requirements for Offering Freemium Version of Product or Service in Minnesota

In Minnesota, there are no specific laws or regulations that prohibit offering a freemium version of a product or service. However, businesses must comply with general laws and regulations related to consumer protection, advertising, and data privacy.

Consumer Protection

Businesses must ensure that their freemium offering does not violate consumer protection laws. This includes providing clear and accurate information about the product or service, including any limitations or restrictions of the freemium version. Additionally, businesses must not engage in deceptive or unfair practices, such as bait-and-switch tactics or false advertising.

Advertising

Businesses must comply with advertising laws and regulations in Minnesota. This includes ensuring that any advertising for the freemium version is truthful and not misleading. Businesses must also disclose any material terms and conditions of the freemium offering, such as limitations on features or functionality.

Data Privacy

Businesses must comply with data privacy laws in Minnesota, such as the Minnesota Government Data Practices Act and the Minnesota Consumer Privacy Act. This includes obtaining any necessary consents from users for the collection, use, and sharing of their personal information. Businesses must also ensure that they have appropriate data security measures in place to protect user data.

Farmers’ Market or Community Event; Food Product Sampling and Demonstration

If you plan to offer a freemium version of a food product at a farmers’ market or community event, you must comply with the regulations outlined in MNST 28A.151. This includes meeting food safety and equipment standards, providing food at no cost to individuals, and providing information to the regulatory authority upon request.

Conclusion

In summary, businesses can offer a freemium version of their product or service in Minnesota as long as they comply with general laws and regulations related to consumer protection, advertising, and data privacy. If offering a freemium version of a food product at a farmers’ market or community event, businesses must also comply with the regulations outlined in MNST 28A.151. It is important for businesses to provide clear and accurate information about the freemium offering and to avoid engaging in deceptive or unfair practices. Additionally, businesses must obtain any necessary consents from users for the collection, use, and sharing of their personal information.

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Source(s):
Jurisdiction

Minnesota