Michigan Attorney General Dana Nessel and Corporate Oversight Division Chief Jason Evans testified Wednesday before the Senate Committee on Finance, Insurance, and Consumer Protection in support of Senate Bills 1021 and 1022, sponsored by Senator Sam Singh.
The legislation would help the millions of Michigan consumers who currently stand legally helpless against predatory, deceptive, and unaccountable commercial operators because of misinterpretations of the Michigan Consumer Protection Act (MCPA).
“My office receives complaints from consumers every day about suspected deceptive business practices, and while the Consumer Protection Team helps thousands of Michiganders each year with the tools at their disposal, the current state of the Michigan Consumer Protection Act is largely toothless and ineffective against predatory conduct perpetrated by licensed businesses or individuals,” Nessel said. “These adjustments can breathe life back into the MCPA and revive the law’s original purpose, protecting Michigan’s residents from unscrupulous businesses.”
The attorney general and the Consumer Protection Team receive over 10,000 consumer complaints each year. However, Michigan Supreme Court decisions in Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc. preclude state investigation of suspected illegal business practices when the target business sells products or services authorized for sale by a law administered by a state or federal agency, irrespective of allegations pertaining to how they conduct that business. Senate Bills 1021 and 1022 would enable these companies to be investigated by the Department of Attorney General.
Nessel has also launched an investigation into insulin manufacturer Eli Lilly and has asked the Michigan Supreme Court to reconsider the two previous rulings that hinder the Department’s ability to take action against drug manufacturers and other regulated/licensed entities under the Michigan Consumer Protection Act. The Court will hear oral argument in that matter tomorrow.
“The court ruled that these essential consumer protections should not apply to the customers of a licensed professional and in doing so turned a professional or occupational license into an all-powerful shield against civil accountability for untold customer abuses,” Nessel continued. “With this legislative package, our lawmakers have the unique opportunity to help quite literally every single resident of their districts and this state.”
The legislative package would also expand the types of transactions subject to the Michigan Consumer Protection Act, provide the Department of Attorney General with the ability to issue investigative demands to investigate alleged violations of the Michigan Consumer Protection Act, and enhance penalties for violations targeting the elderly and vulnerable adults.
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