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HB 5223

Consumer protection: other; use of dynamic pricing in certain retail stores; prohibit. Amends 1976 PA 331 (MCL 445.901 - 445.922) by adding sec. 3p. TIE BAR WITH: HB 5224'25

2025-2026 Regular Session Introduced by Noah Arbit and 16 co-sponsors

Prohibits dynamic pricing via digital price tags in large retail boxes and membership clubs, requiring uniform pricing and 12 months of change records.

bill electronically reproduced 11/05/2025
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Bill Summary · HB 5223

Summary — HB 5223 (2025): Prohibiting dynamic pricing via digital price displays in certain stores

Purpose

HB 5223 would add section 3p to the Michigan Consumer Protection Act (1976 PA 331, MCL 445.901–445.922) to prohibit the use of dynamic pricing through digital price tags in large "retail box stores" and membership warehouse clubs, and to require certain transparency and recordkeeping about prices and discounts.

Key provisions

  • Prohibition: A retail box store or membership warehouse club that uses digital price displays may not use dynamic pricing in the sale of goods.
  • Uniform availability: Except where subsection (3) applies, any price or discount shown on a digital price tag must be uniformly available to all consumers.
  • Permitted discounts: Coupons, loyalty discounts, and manufacturer rebates are allowed only if:
    • They are equally available to all customers, and
    • They do not vary according to external conditions (e.g., time of day, day of week, weather/temperature) or customer attributes.
  • Membership discounts: If a membership is required for a discount, the digital price tag must display (a) that a membership is required to receive the discount, (b) the discounted price, and (c) the non‑member (regular) price.
  • Recordkeeping: Retailers covered by the section must maintain records of price changes for at least 12 months.
  • Definitions included:
    • "Digital price tag" = electronic in‑store device that can be updated remotely/automatically.
    • "Dynamic pricing" = pricing that adjusts at any time based on external conditions (examples listed: time of day, day of week, weather, customer attributes including location, demographics, purchase history, or characteristics protected under the Elliott‑Larsen Civil Rights Act).
    • "Retail box store" = chain/franchise store with >20,000 sq. ft. retail floor area.
    • "Membership warehouse club" = store selling goods in bulk/discounted prices that requires membership to access premises/prices.

Who is affected

  • Directly: Large retail chains (>20,000 sq. ft.) and membership warehouse clubs using digital price tags (e.g., national big‑box chains and clubs).
  • Indirectly: Consumers (price transparency and uniformity), retailers and technology providers (must adjust pricing systems and maintain records).

Procedural status & timing

  • Introduced: March 14, 2025 (primary sponsor Rep. Jason Morgan). Referred to committees; public hearing April 29, 2025 (left pending).
  • Later activity: Bill electronically reproduced 11/05/2025; read and referred to Committee on Economic Competitiveness 11/05/2025.
  • Effective date: 180 days after enactment.
  • Tie‑bar: The bill will not take effect unless companion legislation (House Bill 5224 (H04394'25) or Senate Bill S04394'25) of the 103rd Legislature is enacted.

Notes on enforcement and impacts

  • The bill amends the Michigan Consumer Protection Act; specific enforcement mechanisms or penalties are not spelled out in section 3p itself (enforcement would be under applicable MCPA provisions).
  • Potential retailer impacts include system changes to ensure uniform pricing, display of membership pricing, retention of price‑change logs for 12 months, and limits on targeted/time‑varying discounts. Consumers would generally see greater price consistency and transparency in covered stores.

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

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