Michigan is getting serious about defending consumers against data breaches and price gouging, as demonstrated by the testimony of Department of Attorney General officials before a key Senate committee. Jason Evans, Chief of the Corporate Oversight Division, and Assistant Attorney General Kathy Fitzgerald lent their voices in support of new proposed laws aimed at bolstering consumer rights, according to an announcement from the Michigan Department of Attorney General's Office. These proposed Senate Bills, 888-892 and 954-956, are set to impose stricter requirements on companies suffering from data breaches to notify the Department of Attorney General promptly and to shield consumers from overinflated prices during states of emergency or significant market disruptions.
Michigan's residents have been increasingly targeted by cyberattacks, with Nessel recently alerting them to breaches involving McLaren and Change Healthcare, impacting millions and potentially one-third of all US citizens respectively; Michigan law currently lacks a mandate for companies to report these breaches, often leaving the Department of Attorney General to find out through news outlets, per the Michigan Department of Attorney General's Office. The legislative package, akin to measures in 36 other states, would necessitate that companies report any breach affecting over 100 Michiganians, while also expanding consumer notice requirements, mandating immediate third-party vendor breach disclosure to clients, instilling a 45-day notification deadline from breach discovery, and equipping the Department with investigative authority and enforcement powers.
Nessel's commitment to consumer protection extends beyond digital concerns, targeting economic exploitation; she has actively sought to address price gouging, evident from last month's roundtable discussion and from her past legal actions against businesses like tree service companies and pharmacies that purportedly inflated prices unreasonably, as "Michigan must join the majority of states that already require Attorney General notification of data breaches and hold price gougers accountable," Nessel highlighted. The proposed anti-gouging bills outline provisions for justifying price hikes, define excessive pricing during emergencies, and specify penalties for violations, promising an environment of market fairness for Michigan's consumers.
