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HB 6000

Consumer protection: other; businesses that participate in round-up donation programs; require certain disclosures related to organization receiving the funds. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3p.

2023-2024 Regular Session Introduced by Erin Byrnes and 5 co-sponsors

Michigan bill requires retailers to disclose which charities receive round-up donation program funds and how money is distributed between charity and business.

bill electronically reproduced 09/26/2024
#businesses:charitableorganizations #consumerprotection:other #trade:businesspractices
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Bill Summary · HB 6000

Legislative bill overview

HB 6000 requires businesses that operate "round-up" donation programs (where customers can round up their purchases to donate the difference) to provide clear disclosures about which organizations receive the funds. The bill amends Michigan's consumer protection law to establish transparency requirements for these fundraising programs.

Why is this important

Round-up programs are increasingly common at retail checkouts, but consumers often don't know where their money actually goes or how much is retained by the business versus donated. This bill addresses information asymmetry by requiring explicit disclosures, allowing consumers to make informed decisions about participating in these programs.

Potential points of contention

  • Administrative burden: Retailers may argue compliance costs are high, particularly for small businesses managing multiple charitable partners
  • Business profit concerns: Disclosure requirements might highlight that businesses retain portions of donations for administrative costs, potentially reducing participation rates
  • Scope ambiguity: The bill language doesn't clarify whether disclosures must appear at point-of-sale, on receipts, online, or in other formats, creating implementation uncertainty

Compiled from official sources — confirm details with the bill’s official record.

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