Bill
HB 5137
HB 5137 increases consumer remedies for overcharged prices at automatic checkouts, raising cure amounts and indexing damages to Detroit CPI starting 2028.
Status and procedural history
- Bill filed: March 13, 2025.
- Passed the House (third reading/record vote): May 10, 2025.
- Electronically reproduced and re-introduced/received first reading: October 28, 2025; referred to the Committee on Economic Competitiveness.
- Amends: 2011 PA 15 ("Shopping reform and modernization act"), specifically sections 9 and 12 (MCL 445.319 and 445.322).
Purpose / intent
- Increase consumer remedies for retail price overcharges (particularly in automatic checkout situations) and index statutory damage amounts to inflation (Detroit CPI), while preserving private enforcement mechanisms (declaratory/injunctive relief and individual/class actions).
Key provisions and changes
- Applicability (Sec. 9): Applies to retail sales where (1) a price is displayed, (2) sale is recorded by an automatic checkout system, and (3) the buyer receives a receipt describing the item and charged price.
- Buyer notice requirement (Sec. 9(2)): A buyer who suffers a loss because the charged price exceeds the displayed price must notify the seller in person or writing within 30 days and provide evidence of the loss.
- Seller cure/payment (Sec. 9(2)): If, within 2 days of receiving the buyer’s notice, the seller pays the buyer the specified amount, the buyer is barred from further recovery for that loss. The bill raises the minimum/maximum cure amounts:
- Payment = difference between displayed and charged price, plus 10× that difference, but not less than $10.00 and not more than $50.00.
- For multiple identical items in one transaction, the 10× multiplier applies to one of the identical items; the difference is paid for each item.
- Section retains an exception: does not apply where the seller intentionally overcharges.
- Private suit if seller does not cure (Sec. 9(3)): Buyer may sue under Sec. 12(2) if seller fails to pay the cure amount.
- Private enforcement (Sec. 12):
- If the attorney general or a prosecuting attorney fails to act within 60 days after notice, any person may seek declaratory judgments and temporary or permanent injunctions.
- Damages: A person who suffers loss may recover actual damages or statutory damages (text reads “$250.00, $500.00, whichever is greater”) for each day a violation is found, plus reasonable attorney fees; in individual actions attorney fees are capped (text: do not exceed $300.00).
- Inflation adjustment (Sec. 9(5) and Sec. 12(3)): Beginning January 1, 2028, the state treasurer must adjust the statutory amounts in Sec. 9(2) and the damages amount in Sec. 12(2) to reflect cumulative annual percent changes in the “Detroit Consumer Price Index” (defined as the most comprehensive BLS index available for the Detroit–Warren–Dearborn area).
Who is affected
- Consumers: stronger and higher statutory cure payments for mistaken overcharges; ability to seek damages and injunctive relief.
- Retailers/operators of automatic checkout systems: increased potential liability and need to respond quickly to buyer notices or face litigation; deliberate overcharge exception remains.
- Attorneys and class-action plaintiffs: preserves private enforcement and allows class actions; individual attorney-fee cap may limit small individual claims.
Notes and drafting observations
- The bill replaces prior low minimum/maximum cure amounts ($1.00 / $5.00 range) with substantially higher limits ($10.00 / $50.00).
- The statutory-damages phrase in Sec. 12(2) appears to contain an unclear formulation (“$250.00, $500.00, whichever is greater”) — may require clarification or correction in subsequent drafting.
- Indexing to the Detroit CPI begins Jan 1, 2028, to preserve real value of statutory amounts over time.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
