Great Lakes Wire

Today, representatives from the Michigan Department of Attorney General testified before the Senate Committee on Finance, Insurance, and Consumer Protection. The testimony focused on supporting legislative measures aimed at enhancing consumer protections against data breaches and price gouging. Jason Evans, Chief of the Corporate Oversight Division, and Assistant Attorney General Kathy Fitzgerald spoke in favor of two legislative packages. These packages include Senate Bills 888-892 and Senate Bills 954-956.

The proposed legislation seeks to amend state law by requiring companies that experience a data breach to notify the Department of Attorney General promptly. This requirement aligns with practices in 36 other states and the District of Columbia. Currently, Michigan law does not mandate such notification, often leaving the department to learn about breaches through media reports.

Attorney General Dana Nessel emphasized the importance of these measures: “Michigan must join the majority of states that already require Attorney General notification of data breaches and hold price gougers accountable,” she stated. Nessel highlighted recent incidents involving McLaren and Change Healthcare as examples of significant data breaches affecting Michigan residents.

Senate Bills 888-892 propose amendments to the ID Theft Protection Act, including expanding when consumer notice is required, mandating third-party vendor notifications, setting a 45-day deadline for breach notifications, and granting investigative authority to the Department of Attorney General.

In addition to addressing data breaches, the legislation also targets price gouging during emergencies or market disruptions. Senate Bills 954-956 define price gouging as selling goods or services at more than a 10 percent increase from pre-emergency prices. The bills provide legal frameworks for action against violators.

Nessel has been proactive in tackling price gouging issues. She recently participated in discussions with lawmakers about these bills and has taken legal actions against businesses accused of deceptive practices following storm clean-ups.

The proposed legislation aims to strengthen consumer protection laws in Michigan by holding companies accountable for data security lapses and preventing unfair pricing practices during crises.