Michigan House Bill HB4867

Michigan 2023-2024 Regular Session

• Introduced: 6/28/23
• Refer: 6/28/23

Caption

Consumer protection: unfair trade practices; applicability of consumer protection act; revise. Amends sec. 4 of 1976 PA 331 (MCL 445.904).

Impact

The amendment proposed in HB 4867 could significantly impact how consumer protection issues are addressed in Michigan. By clarifying exemptions and emphasizing the conditions required for a cause of action to be valid, the bill might limit the number of claims that consumers can bring under the Consumer Protection Act. This has the potential to reduce the legal liabilities faced by businesses when it comes to advertising practices that may be perceived as misleading, which could, in turn, influence consumer trust and market practices within the state. Supporters of the bill argue that it would create a balanced business environment, while critics might see it as a weakening of consumer rights.

Summary

House Bill 4867 is proposed legislation aimed at revising the applicability of the Michigan Consumer Protection Act, specifically by amending Section 4 (MCL 445.904) of the Act. The main focus of the bill is to clarify the conditions under which certain unfair, unconscionable, or deceptive acts are deemed unlawful. It introduces specific exemptions that outline when the Act does not apply, particularly concerning transactions that fall under the authority of regulatory boards or actions by media entities if they are unaware of any misleading or deceptive nuances in their advertisements. This change is intended to provide more specific guidance on the enforcement of consumer rights and the protections afforded by the Act.

Contention

One notable point of contention around HB 4867 relates to the exemptions for media entities and the nature of knowledge required to establish deceptive practices. Opponents of the bill may argue that by allowing exemptions for media publishers unless they have direct knowledge of misleading content, consumers may face increased risks of exposure to deceptive advertising. Furthermore, there may be concerns regarding how these legal standards affect the ability of consumers to seek redress for unfair practices. This debate raises questions about the intended balance between protecting consumers and fostering an environment conducive to business interests.

Last_action

The bill is currently in the drafting phase, and discussions in legislative committees have focused on both its implications for consumer protection and the business landscape in Michigan.