Michigan House Bill HB5199

Michigan 2023-2024 Regular Session

• Introduced: 10/24/23
• Refer: 10/24/23

Caption

Consumer protection: other; applicability and enforcement of consumer protection act; expand. Amends title & secs. 2, 5 & 10 of 1976 PA 331 (MCL 445.902 et seq.) & adds secs. 5a & 21a.

Impact

If enacted, HB 5199 would significantly strengthen the legal framework surrounding consumer protection in Michigan, aiming to deter fraudulent activities and provide a clearer definition of business opportunities. The bill addresses the growing concerns pertaining to deceptive practices, especially those targeting the elderly, which may lead to financial exploitation. By allowing civil fines of up to $50,000 for transgressions against these demographics, the legislation seeks to enhance the accountability of businesses and protect consumers. Additionally, the establishment of the revolving enforcement fund may provide essential resources for ongoing education and outreach efforts in consumer protection.

Summary

House Bill 5199 aims to amend the Michigan Consumer Protection Act by expanding its scope and enhancing provisions related to unfair trade practices. This bill includes key amendments that define 'business opportunities' and introduce new penalties for targeting vulnerable demographics, specifically elderly and vulnerable adults. The legislation seeks to empower the Attorney General's office with additional authority to enforce violations and take necessary actions against unfair business practices more effectively. Furthermore, it proposes the establishment of a revolving enforcement and education fund intended to facilitate consumer protection initiatives.

Contention

While proponents argue that the bill's provisions are crucial for safeguarding vulnerable populations and enhancing the state's ability to combat fraud, detractors may raise concerns regarding the potential imposition of too stringent regulations on businesses. Critics often suggest that excessive regulations could hamper business growth and innovation. As the bill proposes significant changes to existing consumer protection laws, there may be ongoing discussions regarding the balance between consumer rights and business freedom, particularly in the context of the definitions set forth for business opportunities and potential penalties.