Senate Dems Try Again To Pass New Consumer Protection Act Authorities For AG
- Team MIRS
- May 8
- 3 min read
(Source: MIRS.news, Published 05/07/2025) If it's believed a business owner is being deceptive, the Attorney General could demand that they are examined under oath, under legislation Sen. Sam Singh (D-East Lansing) is bringing back in the 2025-26 legislative session.
Singh is hoping to resurrect consumer protection standards from the former Attorney General Frank Kelley (1961-1998) era as part of SB 134, which was taken up Wednesday by the Senate Finance, Insurance and Consumer Protection Committee.
The bill mirrors legislation the Senate passed by a 20-16 party-line in December 2024 but left behind in the final days of the 2023-24 legislative term.
The proposal looks to restore the Attorney General's investigative powers that were weakened by the 1999 Michigan Supreme Court ruling Smith V. Globe Life Insurance Company, which determined that those engaged in unfair or deceptive trade practices can't be held liable if the transaction is authorized by statute.
Providing testimony to the Senate panel Wednesday was Jason Evans, the Attorney General's corporate oversight division chief.
He explained if a local grocery store was gouging the prices of eggs, milk and baby formula, the office could not pursue the issue because it's a food establishment licensed by the Michigan Department of Agriculture and Rural Development (MDARD). He added that if a used car dealership makes deceptive misrepresentations about vehicle costs or is "forcing customers to sign deceptive sales contracts," the office can't use the Michigan Consumer Protection Act (MCPA) to go after them because they're overseen by the Department of State.
Because builders are licensed by the state's Department of Licensing and Regulatory Affairs (LARA), Evans noted that the MCPA can't be used to pursue legal action against contractors who've "made zero progress in weeks, or whose material costs keep mysteriously rising on you."
Ultimately, Evans summarized how SB 134 seeks to clarify that the Smith exemptions to MCPA legal action do not apply when the conduct of business owners is not permitted under state or federal law.
"What the Supreme Court said is that if the general transaction is authorized, then it falls outside of the Consumer Protection Act," he said. "If I'm a licensed builder, and I'm building a home for you . . . and I misrepresent the materials I use, or I misrepresent what I'm supposed to do or . . . I simply don't do the work, and I've already collected payment, that conduct would fall outside the Consumer Protection Act."
The bill adds special fines and fees specifically related to a business owner deceiving someone 80 years old or over, as well as vulnerable adults unable to live independently due to mental, developmental or physical disabilities.
The business owner could face a $50,000 civil fine for each violation of persistently and knowingly targeting an elderly or vulnerable adult.
Evans added that SB 134 allows them to issue investigative demands for alleged violations, instead of needing court-signed subpoenas before investigating.
SB 134 was opposed by groups like the Michigan Association of Home Builders, the Ford Motor Company, the Michigan Retailers Association, the Detroit Regional Chamber and the Michigan Chamber of Commerce.
Shawon Cecil of Michigan Realtors sees the legislation as unnecessary and potentially harmful, as the deceptive and unfair conduct is "already" being addressed by LARA in his industry.
"And unlike LARA, which relies on trained regulators to evaluate professional standards, the MCPA opens the door for judges and juries to second-guess actions that are otherwise permitted or required under a license," Cecil said. "We're not asking for a free pass for bad actors. Members who commit fraud or step outside their professional bounds should and do face consequences, but this bill disrupts that thoughtful balance the Legislature put in place, one that has worked for years to protect consumers while ensuring fair and expert oversight of licensed professionals."
