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Department of Attorney General Testifies in Support of Bill to Restore Michigan Consumer Protection Act

LANSING – 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 in support of Senate Bill 134, sponsored by Senator Sam Singh, announced Michigan Attorney General Dana Nessel. The legislation would 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).

“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,” Nessel said. “This legislation would restore the MCPA’s original purpose: protecting Michigan’s residents from deceptive and predatory conduct.”  

“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,” Evans said. “This is particularly important in a time when federal consumer protection efforts are being significantly scaled back.”

The Attorney General and the Consumer Protection Team receive over 10,000 consumer complaints each year. However, since the Michigan Supreme Court decisions in Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc., Michigan now has one of the most limited consumer protection acts in the country. These decisions 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. Senate Bill 134 would enable these companies to be investigated by the Department of Attorney General and strengthen Michigan’s consumer protections to match those of other states.

Attorney General Nessel 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 MCPA. The Court heard oral arguments in that matter last year and issued an order posing additional questions that are being briefed by the parties ahead of an anticipated second argument.

The bill would also provide the Department of Attorney General with the ability to issue investigative demands to investigate alleged violations of the MCPA and enhance penalties for violations targeting the elderly and vulnerable adults.

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