Michigan House Bill HB5201

Michigan 2023-2024 Regular Session

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

Caption

Consumer protection: unfair trade practices; applicability of consumer protection act; revise. Amends sec. 4 of 1976 PA 331 (MCL 445.904) & adds sec. 2a.

Impact

This legislation could significantly impact existing consumer protection laws in Michigan by clarifying which practices fall under the act's purview. The amendment to Section 2a emphasizes liberal construction to uphold consumer rights while delineating conditions under which certain practices may be exempt from liability. Additionally, it can influence how consumers perceive their rights and the protections available against deceptive business practices, potentially strengthening advocacy for consumer rights and education.

Summary

House Bill 5201 seeks to amend the Michigan Consumer Protection Act by altering existing provisions regarding unfair trade practices and adding a new section to broaden the applicability of consumer remedies. The proposed amendment intends to ensure that the act is interpreted in a manner that emphasizes its purpose, effectively allowing consumers additional avenues for recourse against unfair practices. By amending Section 4, the bill stipulates that certain acts or transactions authorized by the state or federal law are exempt from being labeled as unfair, which may create limitations for consumer claims.

Contention

Notable points of contention surrounding HB5201 could arise from its implications for businesses that may rely heavily on specific exemptions outlined in the bill. Critics may argue that the proposed changes could provide undue protection to businesses at the expense of consumer rights, particularly in advertising practices where misleading information can lead to significant consumer harm. Conversely, supporters of the bill might contend that greater clarity around exemptions will assist businesses in compliance, thereby fostering a more balanced commercial environment.