Michigan House Bill HB5037

Michigan 2023-2024 Regular Session

• Introduced: 9/26/23
• Refer: 9/26/23

Caption

Trade: consumer goods and services; price cap on bottled water at mass entertainment venues; provide for. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.

Impact

If passed, HB 5037 would directly impact the operations of entertainment venues across Michigan, compelling them to adhere to the stipulated price controls. This legislation aims to promote fair consumer pricing in an environment where such venues often charge a premium for bottled beverages, thus addressing concerns about excessive pricing that have been raised by consumer advocacy groups. By enforcing these pricing regulations, the bill is intended to enhance consumer rights and protect individuals from being overcharged for basic necessities during events.

Summary

House Bill 5037 aims to amend the Michigan Consumer Protection Act by introducing regulations on bottled water pricing at entertainment venues. The bill establishes specific price caps for bottled drinking water, particularly limiting prices based on the volume of the bottle sold. For instance, a charge cannot exceed $2.00 for bottles with a capacity of 16 ounces or less, and the maximum price for larger bottles increases incrementally up to $4.00 for those with a 24-ounce capacity or greater. This initiative is set to take effect on January 1, 2025, with adjustments to the pricing caps planned every five years based on the Detroit Consumer Price Index.

Contention

While supporters of the bill argue it is a necessary step toward consumer protection, opponents may raise concerns about the implications for business operations and profitability in the entertainment sector. Critics could argue that the price controls might undermine the financial viability of some venues, especially those relying on higher-priced concession sales. This discourse highlights the tension between protecting consumer interests and supporting business sustainability, positioning HB 5037 within broader debates about regulation in the market.