Michigan House Bill HB5897

Michigan 2023-2024 Regular Session

• Introduced: 7/30/24
• Refer: 7/30/24
• Report Pass: 12/10/24
• Engrossed: 12/13/24
• Refer: 12/18/24

Caption

Trade: business practices; excessively increased pricing for energy products and services during a market disruption; prohibit. Creates new act. TIE BAR WITH: SB 0954'24, SB 0955'24

Impact

The enactment of HB 5897 would amend existing Michigan laws related to consumer protection and energy pricing, aiming to provide consumers with greater protection against price gouging during critical periods. The bill empowers the attorney general and local prosecuting attorneys to pursue legal actions against offenders, establishing monetary penalties that can reach up to $1 million for businesses and $10,000 for individuals per violation. This law seeks to reassure Michiganders that they will not face exploitative pricing in times of crisis and establishes a basis for legal recourse should such practices occur.

Summary

House Bill 5897, dubbed the 'Energy Pricing Protection Act', is designed to prevent excessive pricing for essential energy products and services during periods of market disruption. The bill specifically targets items such as gasoline, propane, and home heating oil. It outlines clear definitions for terms such as 'excessively increased price' and 'market disruption', aiming to establish a legal framework that prohibits the sale of energy products at inflated prices following events like natural disasters, strikes, or other emergencies. The act delineates the responsibilities of state and local government entities in enforcing these regulations and imposes civil penalties for violations.

Sentiment

Support for HB 5897 is predominantly positive, particularly among consumer advocacy groups and those concerned about fair pricing practices during market disruptions. Legislators advocating for the bill emphasize its necessity in safeguarding vulnerable populations impacted by sudden price increases. Critics may express concerns about the enforcement mechanisms and implications for businesses operating in challenging market conditions, but the general sentiment aligns with public interest and consumer rights.

Contention

While the bill is largely seen as a necessary measure to protect consumers, discussion around its specifics may reveal points of contention. Some stakeholders might argue about the burden of compliance for businesses, especially small enterprises that may struggle to absorb fluctuations in pricing and regulatory requirements. There could also be debate about the definitions outlined in the bill, particularly what constitutes an 'excessively increased price' versus justifiable price adjustments due to valid increases in operational costs during disruptions.