Tell Your Legislators to Protect Michigan Consumers from Unfair and Deceptive Practices

Now, the Michigan House of Representatives is attempting to reverse this decision and expose consumers in Michigan to unfair business practices through House Bill 5725.

Since 1999, the Michigan Consumer Protection Act (MCPA) has been severely weakened by Supreme Court cases that reinterpreted a narrow exemption within the Act. The exemption, as intended, was to be used only if a specific transaction or practice was permitted by a regulatory law. However, Supreme Court cases in 1999 and 2007 incorrectly applied the exemption to nearly all business activity and transactions. As a result, Michiganders had no path to compensation if they were victimized by financial scams, predatory lending schemes, or hidden rental fees. Businesses could engage in deceptive or unfair practices without any fear of being held accountable by the MCPA, as their unethical behavior was exempt to the Act.

After 30 years, the Michigan Supreme Court decided in Attorney General v. Eli Lilly and Co. that the exemption's power was misunderstood, and brought the exemption back in line with its original intent. Now, If a dealership lies about the condition of a car they're selling you, a contractor gives you a much higher bill compared to the quotes you were first shown, or a drug manufacturer unreasonably raises the prices of medication, you can hold them accountable for exploiting you.

HB 5725, if passed, would codify the incorrect interpretation of the exemption into Michigan law and prevent consumers from holding unscrupulous businesses accountable.