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HB 5771

Consumer protection: other; surveillance pricing; prohibit. Amends secs. 3, 5 & 11 of 1976 PA 331 (MCL 445.903 et seq.) & adds sec. 3p.

2025-2026 Regular Session Introduced by Noah Arbit and 30 co-sponsors

Michigan HB 5771 tightens pricing laws to curb deceptive and surveillance-based pricing, boosting transparency and penalties for unfair pricing practices.

PLACED ON ORDER OF THIRD READING WITH SUBSTITUTE S-1
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Bill Summary · HB 5771

Bill Summary: HB 5771 (2025-2026) – Michigan

Purpose and Intent

  • The bill amends Michigan’s consumer protection framework within the Public Act 331 of 1976 (MCL 445.903 et seq.) and adds a new section ( sec. 3p ).
  • It targets surveillance pricing practices, aiming to prohibit certain price-gouging or discriminatory pricing actions that may be viewed as unfair or deceptive in consumer transactions.

Key Provisions and Changes

  • Amendments to existing Act (P.A. 331 of 1976):
    • The bill revises sections 3, 5, and 11 of the act to clarify or modify prohibitions and enforcement related to consumer protection in pricing and business practices.
    • While the exact text is not provided here, typical changes in such amendments involve:
    • Defining or tightening prohibited practices related to pricing transparency, misrepresentation of prices, or deceptive discounts.
    • Expanding or clarifying duties of merchants to avoid deceptive pricing schemes.
    • Enhancing enforcement tools or penalties for violations of pricing and consumer protection standards.
  • New Section – sec. 3p:
    • Introduces an additional statutory provision relating to surveillance pricing practices, potentially prohibiting price surveillance methods that unfairly manipulate consumer prices or enable discriminatory pricing.
    • This may address practices such as dynamic pricing based on consumer profiling, geo-pricing, or other techniques perceived as unfair or deceptive.

Who or What is Affected

  • Covered Entities: Retailers, merchants, and businesses engaged in pricing, discounts, or promotional practices in Michigan.
  • Consumers: General consumers purchasing goods and services in Michigan who could be affected by pricing transparency, non-deceptive advertising, and protections against unfair surveillance-based pricing.
  • Enforcement Agencies: State consumer protection authorities responsible for investigating, prosecuting, or adjudicating violations.

Procedural and Timeline Aspects

  • Introduced: March 19, 2026 (Rep. Noah Arbit).
  • Referral: Referred to the House Committee on Economic Competitiveness.
  • Committee Action:
    • April 14, 2026: Bill electronically reproduced.
    • July 2, 2026: Reported favorably by Committee of the Whole with Substitute S-1; Substitute S-1 concurred; placed on the Order of Third Reading with Substitute S-1.
  • Status: As of the latest action, the bill has advanced through committee with a substitute and is moving toward final passage in the House (subject to floor votes on the third reading after any additional amendments).

Practical Effects and Implications

  • Likely increases price transparency requirements and strengthens prohibitions on deceptive pricing.
  • Could restrict or regulate surveillance-based pricing practices to ensure fairness and prevent exploitation of consumer data for discriminatory pricing.
  • May introduce or adjust penalties, enforcement procedures, and remedies for violations, impacting how businesses design pricing strategies and marketing campaigns.
  • Consumers would gain clearer protections against unfair or deceptive pricing tactics and potentially greater recourse for violations.

Notes for Stakeholders

  • The exact statutory language of the amended sections and the new sec. 3p will determine the precise scope, enforcement mechanisms, and any exemptions (e.g., for certain promotional events or legally permissible price adjustments).
  • Businesses should review pricing policies, data collection practices, and promotional disclosures to ensure compliance with the forthcoming changes.
  • Stakeholders should monitor floor votes and potential amendments on third reading for any modifications to scope, penalties, or definitions.

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

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