HB 5224 — Summary: Prohibiting dynamic pricing for retail groceries (amendment to MCPA)
Status and key procedural steps
- Bill number: HB 5224 (introduced March 14, 2025; electronically reproduced 11/05/2025). Primary sponsor: Rep. Jason Morgan; multiple cosponsors. Companion: SB 2116. Tie bar with HB 5222 and HB 5223.
- Committee activity: public hearing and committee substitute considered in April 2025; reported favorably as substituted and placed on the House calendar. The House recorded passage/engrossment actions in May 2025. Upon electronic reproduction on Nov. 5, 2025 the bill was referred to the Committee on Economic Competitiveness.
Purpose / intent
- To amend section 3 of the Michigan Consumer Protection Act (MCL 445.903) to make certain use of dynamic pricing by retail grocery businesses an unfair, unconscionable, or deceptive practice. In short, the bill seeks to prohibit or classify as unlawful the application of dynamic (algorithmic or demand-based) pricing practices in the retail grocery sector to protect consumers from potentially harmful or deceptive price variation.
What the bill does (key provision)
- Amends the statutory list of unlawful trade practices under the Michigan Consumer Protection Act by adding a new violation that specifically targets the use of dynamic pricing by retail grocery sellers.
- By adding the prohibition to MCL 445.903, the bill makes the conduct actionable under the existing enforcement and remedy framework of the MCPA.
Who is affected
- Retail grocery businesses operating in Michigan (including brick-and-mortar supermarkets, grocery chains, and likely online grocery platforms and apps used by such retailers).
- Third-party delivery or marketplace services that facilitate grocery sales may be affected if they implement or enable dynamic pricing for grocery purchases.
- Consumers purchasing groceries in Michigan, who would be protected from price variability deemed unlawful under the new provision.
Enforcement and remedies
- The amendment incorporates the prohibition into the MCPA; therefore enforcement would follow the Act’s existing mechanisms (for example, civil enforcement by the state attorney general and private actions by consumers under the MCPA). The bill text provided does not add new penalties or remedies separate from those already available under the MCPA.
Potential impacts and considerations
- Consumer protection: reduces risk of surprise, discriminatory, or demand‑based price spikes for grocery items.
- Business impact: could limit retailers’ ability to use real‑time, algorithmic price management tools for groceries; may impose compliance costs to ensure pricing systems conform to the new restriction.
- Implementation questions: the bill text excerpt does not define “dynamic pricing” or enumerate permitted exceptions (if any), so regulatory interpretation or future rulemaking/ litigation would likely be required to clarify scope (e.g., temporary sales, loyalty discounts, clearance pricing, geographic price variation, or time-limited promotions).
Notes
- The detailed statutory language adding the prohibition was not included in the excerpt provided. This summary describes the bill’s objective and likely legal effect based on the title and the amendment to MCL 445.903.
