Senate Bill 1022 would restore power to MI Consumer Protection Act, Office of Attorney General
LANSING, Mich. (Dec. 5, 2024) — Today, the Michigan Senate passed legislation sponsored by Senate Majority Floor Leader Sam Singh (D-East Lansing) that would bolster protections for Michigan consumers by restoring power to the Michigan Consumer Protection Act, building on additional efforts by Senate Democrats to strengthen consumer protections in the state.
The once-powerful act — gutted following a 1999 Michigan Supreme Court ruling — condones deceptive, fraudulent activity of individuals and businesses so long as they act within a profession that is government-regulated. Now headed to the House for consideration, Senate Bill 1022 would remove those exemptions as well as equip the Michigan Dept. of Attorney General with the authority to investigate, ensuring bad actors and harmful business practices can be held accountable under state law.
“Whether they’re shopping at the grocery store, picking up much-needed medication, or working with a contractor to remodel their home, Michiganders shouldn’t have to worry about being harmed or taken advantage of as they go about their business. Yet unfortunately, for far too long now, residents in every part of Michigan have suffered the impacts from living in what is now known as the worst state in the country for consumer protection laws,” said Sen. Singh. “This legislation would restore the power once held in our Consumer Protection Act — bringing us in line with most other states — and ensure that bad actors are held accountable. It’s time we get this done — our residents are counting on us.”
On top of restoring robust consumer protection efforts to the state Attorney General’s office, Senate Bill 1022 would also create a new fund to support enforcement and education efforts to assist residents and reduce scams. And, following consumer protection best practices, this legislation would create increased penalties for violations against elderly and vulnerable adults.
This legislation is a response to the Michigan Supreme Court 1999 case decision in Smith v. Globe Life Insurance Company, which weakened the power of the Michigan Consumer Protection Act by exempting many industries from liability, leaving residents ill-protected from scams and other deceptive activity.
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