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HB 5981

Human services: food assistance; dynamic pricing of WIC approved items; prohibit. Amends sec. 5105 of 2000 PA 92 (MCL 289.5105) & adds sec. 5102.

2023-2024 Regular Session Introduced by Mike McFall

Michigan bill prohibits retailers from using dynamic pricing on WIC-approved food items to protect low-income families' purchasing power.

bill electronically reproduced 09/26/2024
#consumerprotection:other #humanservices:foodassistance
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Bill Summary · HB 5981

Legislative bill overview

HB 5981 prohibits dynamic pricing—adjusting prices based on real-time demand or customer characteristics—for items approved under Michigan's Women, Infants, and Children (WIC) food assistance program. The bill amends the state's food assistance regulations to prevent retailers from using variable pricing strategies on WIC-eligible products.

Why is this important

WIC serves approximately 300,000+ low-income pregnant women, new mothers, and young children in Michigan by providing vouchers for nutritious foods. Dynamic pricing could reduce purchasing power by inflating prices when demand is high or algorithmically targeting vulnerable populations, directly undermining the program's nutritional assistance mission. This bill addresses concerns about fairness and equity in how retailers price essential foods for economically disadvantaged families.

Potential points of contention

  • Retailer compliance costs: Retailers argue implementing separate pricing systems for WIC items increases operational burden and may reduce their willingness to participate in the program
  • Market competition concerns: Critics question whether prohibiting dynamic pricing on one product category distorts normal market mechanisms or creates unfair competitive disadvantages
  • Definitional ambiguity: The bill may need clarification on what constitutes "dynamic pricing" versus standard promotional discounting, clearance sales, or supply-chain adjustments

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

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