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SB 535

Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends 1976 PA 331 (MCL 445.901 - 445.922) by adding sec. 3j. TIE BAR WITH: SB 0536'25

2025-2026 Regular Session Introduced by Ruth Johnson and 1 co-sponsor

Michigan bill requiring businesses to clearly disclose automatic renewal terms, costs, and cancellation methods in consumer contracts to prevent hidden recurring charges.

referred to Committee on Regulatory Reform
#consumerprotection:other #consumerprotection:unfairtradepractices #trade:businesspractices
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WeVote Research Nonpartisan
Bill Summary · SB 535

Legislative bill overview

SB 535 amends Michigan's Consumer Protection Act to require enhanced disclosure of automatic renewal provisions in consumer contracts. The bill mandates clearer, more prominent information about renewal terms, cancellation procedures, and associated costs before consumers consent to automatic renewal agreements.

Why is this important

Automatic renewal schemes have become a widespread source of consumer complaints, with many people unknowingly charged recurring fees they forgot about or didn't fully understand. Clear disclosure requirements can reduce deceptive practices and give consumers meaningful control over their spending, potentially saving money and reducing disputes.

Potential points of contention

  • Compliance burden on businesses: Companies may face increased administrative costs to redesign contract templates and ensure compliance across all customer touchpoints
  • Definition and scope ambiguity: The bill's specifics on what constitutes "clear" disclosure and which business models are covered could create uncertainty without detailed regulatory guidance
  • Enforcement mechanism gaps: Without specified penalties or enforcement authority details, effectiveness depends on implementation; businesses may view fines as a minor cost of doing business

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

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