Michigan Senate Bill SB0954

Michigan 2023-2024 Regular Session

• Introduced: 6/26/24
• Refer: 6/26/24
• Report Pass: 12/5/24
• Refer: 12/5/24
• Report Pass: 12/12/24
• Engrossed: 12/12/24
• Refer: 12/12/24

Caption

Housing: public accommodations; excessively increased pricing in hotel and lodging industry during a declared state of emergency; prohibit. Creates new act.

Impact

The bill introduces a framework for regulating lodging prices in times of declared emergencies, which is a significant shift in consumer protection law in Michigan. It outlines specific violations, such as charging prices that are grossly excessive compared to pre-emergency rates, and establishes penalties for offending businesses. Furthermore, this legislation provides the Attorney General with the authority to enforce its provisions through civil action and class action lawsuits on behalf of affected individuals. Such regulatory power is intended to deter businesses from unscrupulous pricing behavior during crises, thereby enhancing consumer trust and safeguarding public welfare.

Summary

Senate Bill 0954, known as the Hotel and Lodging Pricing Protection Act, aims to prohibit excessive pricing by lodging businesses during declared states of emergency. This bill specifically addresses instances where the price of lodging significantly exceeds what was charged prior to the emergency declaration. By establishing criteria for what constitutes an 'excessively increased price,' the bill seeks to protect consumers from potential exploitation during vulnerable times such as natural disasters or health crises. It includes remedies and penalties for violations, empowering state and local authorities to take action against those who engage in price gouging during emergencies.

Sentiment

The sentiment surrounding SB 0954 appears to be largely favorable, with support expressed by consumer advocacy groups and legislators who prioritize consumer rights. Proponents argue that the bill is a necessary measure to ensure fairness and accountability in the lodging industry, particularly during crises when consumers are most vulnerable. Conversely, some dissenters raised concerns about the potential overreach of government regulation and the implications for businesses that may struggle to maintain financial viability during emergencies. Overall, the prevailing view supports the bill's intent to curtail price exploitation while calling for balanced enforcement that does not stifle legitimate business operations.

Contention

One of the key points of contention regarding SB 0954 is its impact on the lodging industry and how it defines excessive pricing. Critics worry that the bill's enforcement mechanisms may lead to misunderstandings or conflicts between lodging providers and state authorities, particularly regarding the justification of price increases in times of increased operating costs during disasters. Furthermore, there is ongoing debate over the specific threshold for what constitutes an excessive price increase. The measure's ultimate impact will depend on careful implementation and the responsiveness of regulatory bodies to the evolving economic conditions during emergencies.