AG Nessel Praises Senate Passage of Bill Restoring Protections in the Michigan Consumer Protection Act

LANSING – Michigan Attorney General Dana Nessel is applauding the Michigan Senate for passing Senate Bill 1022 today. The bill, championed by state Senator Sam Singh and the Attorney General, will help the millions of Michigan consumers who currently stand legally helpless against predatory, deceptive, and unaccountable commercial operators because of misinterpretations of the Michigan Consumer Protection Act (MCPA). 

The Attorney General and the Consumer Protection Team receive over 10,000 consumer complaints each year. However, Michigan Supreme Court decisions in Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc. often preclude state investigation of suspected illegal business practices when the target business sells products or services authorized for sale by a law administered by a state or federal agency, irrespective of allegations pertaining to how they conduct that business. This flawed and broad interpretation of a narrow exemption within the MCPA shields many businesses from any state scrutiny of even the most egregiously unfair alleged business conduct. Senate Bill 1022 would enable these companies to be investigated by the Department of Attorney General. 

"My Consumer Protection Team constantly fields calls from Michiganders who have fallen victim to predatory business practices," Nessel said. "From grocery stores price gouging essentials to used car dealerships deceiving consumers with false promises, these unethical practices have left many members of our community financially devastated. Sadly, my office has been forced to turn away these consumers because they were victimized by businesses that are licensed and regulated. Thanks to the Senators who supported this vital legislation, we are now one step closer to closing this loophole and breathing life back into the Michigan Consumer Protection Act. I will continue to advocate for this legislation until it becomes law." 

Attorney General Nessel, who testified in support of the bill in October, has also launched an investigation into insulin manufacturer Eli Lilly and has asked the Michigan Supreme Court to reconsider the two previous rulings that hinder the Department’s ability to take action against drug manufacturers and other regulated/licensed entities under the Michigan Consumer Protection Act. The Court heard oral arguments in that matter earlier this year. 

Senate Bill 1022 aims to restore the types of transactions subject to the Michigan Consumer Protection Act, provide the Department of Attorney General with the ability to issue investigative demands to investigate alleged violations of the Michigan Consumer Protection Act, and enhance penalties for violations targeting the elderly and vulnerable adults. 

The bill will now head to the Michigan House of Representatives for consideration.

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