In a move to bolster consumer rights in Michigan, the state's Department of Attorney General has thrown its weight behind Senate Bill 134. According to a news release from the Michigan Attorney General's office, the Corporate Oversight Division Chief, Jason Evans, delivered testimony to the Senate Committee on Finance, Insurance, and Consumer Protection, advocating for measures that aim to strengthen the Michigan Consumer Protection Act (MCPA). The bill sponsored by Senator Sam Singh, seeks to mend the gaps left wide open by prior court interpretations that have rendered many consumers vulnerable.
Attorney General Dana Nessel, addressing the limitations of the current MCPA, noted that "While the Michigan Consumer Protection Act does still cover some unscrupulous practices, it leaves thousands of Michiganders unprotected from price gouging at grocery stores or deceptive sales contracts at used car dealerships – all because these acts are committed by licensed businesses," as mentioned on the Michigan Department of Attorney General website. Her sentiments underscore the challenges facing consumers, some of whom find legal recourse out of reach when wronged by these ostensibly regulated entities. The bill not only looks to bring back the original intent of the MCPA but to reinforce protections across the board.
The AG's office has not been lax in its consumer protection efforts, evident from the over 10,000 consumer complaints it receives annually. However, past Supreme Court decisions, notably in Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc., have critically narrowed the act's scope. These rulings effectively exempt businesses selling products or services sanctioned by a state or federal agency from state-level oversight concerning their business practices, regardless of legality. The proposed legislation, as highlighted in a statement from the Attorney General, would allow these companies to face investigation by the Department of Attorney General and elevate Michigan's consumer safeguards to align with those of other states.
There's also a proactive stance against pharmaceutical giants like Eli Lilly, with Nessel initiating an investigation into the insulin manufacturer's pricing strategies. The Michigan Supreme Court, which last year began re-examining its prior decisions that have shackled the Department's hands in dealing with drugmakers under the MCPA, is to hold another round of arguments. According to the Michigan Department of Attorney General press release, this comes after the court sought further briefings from involved parties.
Notably, if passed, Senate Bill 134 will empower the Department of Attorney General with the issuance of investigative demands for potential MCPA violations. It also aims to bolster penalties in cases where the elderly and vulnerable adults are the targets.
