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Can I offer a money-back guarantee for my product or service in Minnesota? What are the requirements?

Here is the response to your query:

Money-back Guarantee Requirements in Minnesota

In Minnesota, a seller can offer a money-back guarantee for their product or service. However, there are certain requirements that must be met to ensure compliance with the law.

Under Minnesota Statutes section 325G.30, a seller must clearly and conspicuously disclose the terms and conditions of the guarantee to the buyer before the sale is made. The disclosure must include the following information:

  • The duration of the guarantee
  • Any limitations or conditions on the guarantee
  • The procedure for making a claim under the guarantee
  • The seller’s name and address

Additionally, the seller must honor the terms of the guarantee and provide a refund or replacement as promised.

Express Warranties

If you are selling or leasing a new assistive device in Minnesota, you must provide the consumer with an express warranty to preserve or maintain the utility or performance of the device. The duration of the express warranty must not be less than one year after first possession of the device by the consumer. If you fail to furnish an express warranty as required by this section, the assistive device shall be covered by an express warranty as if you had furnished an express warranty to the consumer as required by this section. [1.2]

Registration Requirements, Surety Bond Requirement, Alternative Security

If you are running a buying, health, or social referral club in Minnesota, you must register with the attorney general and provide all information requested on forms the attorney general provides. You must also pay a registration fee of $250 at the time of registration and a renewal fee of $150 on September 1 of each year following the initial registration. Additionally, you must maintain a surety bond issued by a surety company admitted to do business in Minnesota in an amount not less than the aggregate value of outstanding liabilities to members. The amount of the bond shall be based upon a financial statement covering the immediately preceding 12-month period of the club. [1.3]

Licensing Requirements

If you want to be licensed as an administrator in Minnesota, you must apply to the commissioner in writing and on forms available from the commissioner. The application must contain specific information concerning your expertise to provide service in the areas stated, including detailed resumes of your key employees and all officers of any subcontractor. Additionally, you must submit proof of coverage under a fidelity bond for all persons involved in collecting money and making claims payments, and all officers of the company. The bond must cover losses from dishonesty, theft, forgery or alteration, and misplacement or mysterious and unexplainable disappearance. [3.2]

Conclusion

In summary, a seller can offer a money-back guarantee in Minnesota as long as they comply with the disclosure requirements and honor the terms of the guarantee. If you are selling or leasing a new assistive device, you must provide the consumer with an express warranty. If you are running a buying, health, or social referral club, you must register with the attorney general and maintain a surety bond. If you want to be licensed as an administrator, you must apply to the commissioner and submit proof of coverage under a fidelity bond.

Source(s):
Jurisdiction

Minnesota