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HB 4843

Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.

2023-2024 Regular Session Introduced by Abraham Aiyash and 32 co-sponsors

Michigan HB 4843 requires clear auto-renewal disclosures, step-by-step cancellation, and pre-renewal notices; strengthens MCPA to curb deceptive renewals and allow remedies.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
#consumerprotection:other #consumerprotection:unfairtradepractices #trade:businesspractices
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Bill Summary · HB 4843

HB 4843 — Automatic Contract Renewal Disclosure (Michigan Consumer Protection Act)

Status (key): Referred to Committee on Government Operations (after House passage).
Primary sponsor: Rep. Abraham Aiyash (original consumer-protection version).
Subject: Consumer protection — automatic renewal / unfair trade practices.
Statutes amended: Amends MCL 445.903 (section 3 of the Michigan Consumer Protection Act) and adds proposed section 3j.

Purpose / Intent

To protect consumers from undisclosed or confusing automatic contract renewals by requiring clear, prominent disclosures of automatic renewal terms and providing simple, effective cancellation mechanisms. The bill classifies violations as unlawful unfair, unconscionable, or deceptive practices under the Michigan Consumer Protection Act (MCPA).

Key provisions

  • Adds a new section (3j) to the MCPA requiring businesses that sell/lease goods or services with an automatic renewal provision (for a specified period over one month in later versions) to include a clear, conspicuous automatic-renewal disclosure in the contract or offer.
    • Disclosure requirements (must be included in the contract/offer and prominently displayed):
    • Statement that the contract will automatically renew.
    • Length and price of the initial term.
    • Length and price of each renewal period.
    • Terms of any promotional/limited-time price.
    • Any contract terms that will change upon renewal.
    • Specific, step-by-step cancellation procedure for end of initial term and renewals.
    • Contact mechanism(s) to cancel: email, mailing address, toll-free number, or other cost-effective, timely, easy-to-use means.
    • If a free trial or gift is offered, the post-trial price and cancellation procedure must be clearly stated.
    • Formatting: “Clear and conspicuous” defined (e.g., larger font, contrasting color, or set off with symbols); type size requirements varied across draft versions (10‑point in some drafts; 14‑point in the House-passed H‑5 substitute).
  • Renewal notice / cancellation timing:
    • For contracts renewing for more than two months, providers must send an electronic or written renewal notice prior to the end of the term that repeats the automatic‑renewal statement, lists changes upon renewal, and provides the specific cancellation procedure and mechanism.
    • Consumers must be notified between 30 and 60 days before the last day they can give notice to cancel, and must be given at least 30 days after notice to cancel effective at the end of the term.
    • Consumers must be able to cancel exclusively online in addition to other methods.
    • Timely cancellations must be honored even if received after expiration of the notice period.
    • No additional fee or penalty may be charged to cancel at the end of a term or trial.
  • Recurring reminders: In some versions, providers must notify subscribers electronically every six months that they remain subscribed (annual notice for providers that supply on‑site tangible equipment).
  • Exemptions: The House-passed H‑5 substitute carved out providers regulated by the Michigan Public Service Commission for telephone, wireless, or broadband services and their affiliates.

Enforcement, remedies, and effect

  • Violations are added to the MCPA’s list of unlawful unfair, unconscionable, or deceptive practices.
  • Remedies available under the MCPA apply: consumers may recover $250 or actual damages (whichever is greater), attorney fees, injunctive relief; the Attorney General or prosecutors may seek injunctions and civil fines (up to statutory limits).
  • Contracts that take effect or are extended, renewed, or modified after the bill’s effective date would be subject to the new requirements; contracts contrary to the bill’s provisions could be voided.

Fiscal impact

  • House Fiscal Agency estimated likely no statewide fiscal impact. The Attorney General’s office may see increased caseload; existing resources expected to be adequate, with modest potential additional staff/attorney costs if caseload materially increases.

Legislative history / note on later uses of the bill number

  • The consumer-protection version was originally introduced and advanced in the House (sponsor Rep. Abraham Aiyash) and a House-passed substitute (H‑5) containing the automatic-renewal disclosure requirements was adopted and transmitted in December 2024.
  • Procedural records indicate HB 4843 was later associated with an entirely different subject (a Penal Code amendment concerning electronic control devices) under a different sponsor (Rep. Mike Mueller) and substitute (H‑1) in 2025. Because the bill number was used in multiple stages with different substitutes, check the current legislative docket or the enrolled bill language to confirm which version is active and the bill’s present committee status before relying on the bill number alone.

If you want, I can:
- Pull the exact text of proposed section 3j from the House-passed H‑5 substitute, or
- Track current status and the enrolled bill text to confirm which substitute is active.

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

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