HF4219 (Legislative Session 94 (2025-2026))
Arbitration agreements required to be made after a consumer transaction, and arbitration agreements required to be clear and conspicuous.
Related bill: SF4289
AI Generated Summary
Purpose
This bill aims to protect consumers by changing when arbitration agreements can be offered and how they must be presented. It requires that arbitration clauses be clear, conspicuous, and separate from other sale terms, and that they can only be offered after a consumer buys or leases a good or service. The bill would add these rules into Minnesota law (Minnesota Statutes chapter 325D).
Key Definitions
- Arbitration agreement or agreement to arbitrate: a clause or contract that limits a party’s ability to resolve disputes through a court, jury trial, or class action.
- Clear and conspicuous: the standard defined in section 325G.56, subdivision 3.
- Consumer: an individual who seeks or acquires by purchase or lease a good or service for any purpose.
Main Provisions
- Timing of offer in a separate agreement: A seller or service provider may not require a consumer to enter into an arbitration agreement before or during the sale. An arbitration agreement may be entered into after the sale only if the agreement to arbitrate is clear and conspicuous and is separate from other general terms related to the sale.
- Void provisions: Any arbitration agreement or provision that violates the timing requirement is void and unenforceable.
- Severability: If part of an arbitration agreement violates these rules, that portion must be severed, and the rest of the agreement remains in effect. The void portion does not affect other provisions.
How it changes existing law
- Introduces a new set of requirements for arbitration terms in consumer transactions, specifically restricting when such agreements can be offered and mandating clarity and separation from other sale terms.
- Inserts these rules into Minnesota Statutes chapter 325D, affecting how businesses draft and present arbitration clauses in consumer contracts.
Practical Implications
- For consumers: easier to understand arbitration terms, with protections against being pressured into agreeing at the point of sale; arbitration options become available only after purchase in a clearly stated, separate document.
- For businesses: changes standard practice around presenting arbitration agreements; must ensure any post-sale arbitration offer is clearly labeled as a separate term and clearly communicated.
Relevant Terms - arbitration agreement - clear and conspicuous - consumer - timing (before, during, after sale) - separate agreement - post-sale arbitration - void and unenforceable - severability - Minnesota Statutes chapter 325D - jury trial - class action - contract terms - offer of arbitration timing
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2026 | House | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minnesota Statutes section 325G.56, subdivision 3, for the definition of 'clear and conspicuous' in relation to arbitration agreements. It uses this existing standard to assess arbitration agreement requirements but does not modify that statute in this text.",
"modified": []
},
"citation": "325G.56",
"subdivision": "subd.3"
}
]Progress through the legislative process
In Committee