(Source: MIRS.news, Published 12/06/2024) Senate Democrats on Thursday passed a sweeping “consumer protection” law reminiscent of legislation passed in the 1970s designed to give residents more ability to sue businesses that act in arguably deceptive or fraudulent ways. 

On a 20-16 vote, the Senate restored the ability to take legal action they say was “gutted” following a 1999 Supreme Court ruling in Smith v. Globe Life Insurance Company. The court ruled that if the company in question was regulated by the state, they are shielded from legal action. 

“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,” said Senate Majority Floor Leader Sam Singh (D-East Lansing). “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 law.” 

The bill’s passage received swift praise from Attorney General Dana NESSEL, who said her Consumer Protection Team receives more than 10,000 consumer complaints each year, but she can’t investigate suspected illegal business practices. 

Nessel said this flawed and broad interpretation of a narrow exemption within the Consumer Protection Act shields many businesses from any state scrutiny of even the most “egregiously unfair alleged business conduct.” 

As an example, she investigated insulin manufacturers Eli Lilly and has asked the Michigan Supreme Court to reconsider the two previous rulings that prevented her ability to take action against drug manufacturers. 

The Michigan Manufacturers Association (MMA) denounced the bill’s passage, saying it would undermine long-established legal principles and create an environment that “will unleash unpredictable legal challenges that will hinder the ability of Michigan businesses to survive.” 

“Businesses thrive on predictability, but SB 1022 undermines the stable and balanced precedent in place for the last 25 years,” said MMA’s David WORTHAMS. “If this bill moves forward, manufacturers and other businesses will be subjected to an onslaught of legal risks.” 

The bill now moves to the House.