This week, the Michigan Senate took action on two sets of consumer protection bills, both facing opposition from the Chamber. On June 10, the Senate voted along party lines to advance SB 134 to the House. This legislation seeks to expand the definition of “trade and commerce” to include business activities providing goods and services to small businesses and nonprofit organizations. The bill authorizes the Department of Attorney General to file class action lawsuits against violators, aiming for actual damages or $250 per individual involved in a case. Additionally, it proposes creating a Consumer Protection and Antitrust Revolving Enforcement and Education Fund, funded by attorney fees and revenues from legal actions.
Critics argue that SB 134 could lead to increased litigation across various industries in Michigan. While the current Consumer Protection Act offers safeguards for consumers, opponents claim that SB 134 may encourage costly court cases pursued by serial litigators.
On June 11, the Senate Committee on Finance, Insurance, and Consumer Protection reviewed and voted out SBs 359-364. These bills aim to establish the Personal Data Privacy Act. SB 359 focuses on granting consumer rights over their personal data and requires entities collecting this data to obtain consumer consent before processing it. The remaining bills propose amendments to Michigan’s identity theft act, mandating security measures for both private and government organizations handling personal data.
The proposed package aligns with California’s privacy laws, which necessitate businesses obtaining customer consent before collecting information. Critics note that many provisions are challenging for businesses due to limited flexibility in how customer information can be used.
The Chamber has stated its continued opposition to these consumer protection packages.
