Yesterday, the Michigan Department of Attorney General's Corporate Oversight Division Chief, Jason Evans, testified before the Senate Committee on Finance, Insurance, and Consumer Protection. He expressed support for Senate Bill 134, sponsored by Senator Sam Singh. This was announced by Michigan Attorney General Dana Nessel. The proposed legislation aims to assist millions of Michigan consumers who are currently vulnerable to predatory and deceptive commercial practices due to misinterpretations of the Michigan Consumer Protection Act (MCPA).
Attorney General Nessel stated, "While the Michigan Consumer Protection Act does still cover some unscrupulous practices, it leaves thousands of Michiganders unprotected from price gouging at grocery stores or deceptive sales contracts at used car dealerships – all because these acts are committed by licensed businesses." She emphasized that the legislation seeks to restore the MCPA's original purpose of safeguarding residents from deceptive conduct.
Evans added that "the changes made by Senate Bill 134 would greatly strengthen our consumer protection act and provide real protections to Michigan consumers and small businesses targeted by unscrupulous people." He noted this is crucial as federal consumer protection efforts are being reduced.
The Attorney General's office receives over 10,000 consumer complaints annually. However, due to past decisions in Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc., Michigan's consumer protection laws have become among the most limited in the nation. These rulings prevent state investigations into suspected illegal business practices when businesses sell products or services authorized for sale by a state or federal agency.
Senate Bill 134 would enable investigations into such companies by the Department of Attorney General and align Michigan’s consumer protections with those in other states.
In addition to supporting this bill, Attorney General Nessel has initiated an investigation into insulin manufacturer Eli Lilly and requested that the Michigan Supreme Court revisit previous rulings that limit actions against drug manufacturers under the MCPA. The Court heard arguments last year and has posed additional questions for briefing ahead of a second argument.
The bill also proposes granting the Department of Attorney General authority to issue investigative demands for alleged MCPA violations and increase penalties for offenses targeting elderly and vulnerable adults.