Great Lakes Wire

Michigan Attorney General Dana Nessel, alongside Corporate Oversight Division Chief Jason Evans, addressed the Senate Committee on Finance, Insurance, and Consumer Protection in support of new legislation aimed at strengthening consumer protection laws. The proposed Senate Bills 1021 and 1022, introduced by Senator Sam Singh, seek to amend the Michigan Consumer Protection Act (MCPA) to better protect consumers from predatory business practices.

Attorney General Nessel emphasized the need for these legislative changes due to the current limitations of the MCPA. "My office receives complaints from consumers every day about suspected deceptive business practices," she stated. "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's office processes over 10,000 consumer complaints annually. However, decisions by the Michigan Supreme Court in cases such as Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc., have restricted state investigations into businesses that sell products or services authorized by state or federal agencies. The proposed bills would allow for investigations into these companies by the Department of Attorney General.

In addition to supporting this legislation, Nessel has initiated an investigation into insulin manufacturer Eli Lilly and is seeking a reconsideration of previous court rulings that limit actions against drug manufacturers under the MCPA. Oral arguments on this matter are scheduled for tomorrow.

Nessel further explained that current legal interpretations provide excessive protection for licensed professionals: “The Court ruled that these essential consumer protections should not apply to the customers of a licensed professional.” She urged lawmakers to seize this opportunity to enhance protections for all Michigan residents.

The legislative package aims to broaden transaction types covered under the MCPA and grant more authority to issue investigative demands for alleged violations while increasing penalties for offenses against elderly and vulnerable adults.