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SB 1042

Trade: business practices; excessively increased pricing for certain goods and services during a declared state of emergency; prohibit. Creates new act. TIE BAR WITH: SB 1041'26, SB 1043'26

2025-2026 Regular Session Introduced by Sarah Anthony and 16 co-sponsors

Michigan SB 1042 aims to curb price gouging for essential goods and services during emergencies by setting a 20% price increase threshold and enforcing penalties, injunctive relief

referred to Committee on Regulatory Reform
#consumerprotection:unfairtradepractices #stateagencies(existing):attorneygeneral #trade:businesspractices #trade:consumergoodsandservices
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WeVote Research Nonpartisan
Bill Summary · SB 1042

Overview

  • Bill: SB 1042 (Michigan, 2025-2026)
  • Purpose: Prohibit excessively increased pricing for certain goods and services during a declared state of emergency and provide remedies, penalties, and enforcement mechanisms.
  • Tie-bar: Requires enactment alongside SB 1041 and SB 1043.
  • Status: Introduced June 17, 2026; referred to the Committee on Finance, Insurance, and Consumer Protection.

Main purpose and intent

SB 1042 creates the Commodities and Emergency Services and Supplies Pricing Protection Act. Its central aim is to prevent price gouging for specific categories of goods and services during a declared state of emergency, and to establish enforcement, remedies, and penalties for violations.

Key definitions (scope and terms)

The bill defines several terms to determine what is covered and how it operates:

  • Building materials: Lumber, construction tools, windows, and related items used in construction or reconstruction.
  • Consumer food item: Items used or intended as food, drink, confection, or condiment (for people or animals).
  • Emergency supplies: Items such as water, flashlights, batteries, blankets, soaps, diapers, plywood, nails, hammers, etc.
  • Medical supplies: Prescription and nonprescription meds, bandages, alcohol, antiseptics, etc.
  • Goods: Any tangible property, coupons, or certificates (bought or leased).
  • Services: Any work or labor, including services related to sale, repair of goods, or improvements to real property.
  • State of emergency: A governor-declared emergency due to various disasters or public health threats.
  • Excessively increased price: A price disparity greater than 20% between pre-declaration and during/after-declaration prices, with allowances for cost increases, pre-existing extraordinary discounts, or markups at or below retailer cost.
  • Reasonably after a declaration of emergency: 30 days after the emergency ends.
  • Market disruption: Includes weather, shortages, strikes, war threats, national/local emergencies, or other abnormal market conditions.

Prohibited conduct during or after a declared emergency

During or reasonably after a state of emergency in affected counties/cities/townships, a business in the supply chain may not:

  • Charge prices that are grossly in excess of pre-emergency prices.
  • Charge excessively increased prices.
  • Offer goods, services, or supplies at excessively increased prices.

(Note: "Excessively increased price" is tied to the 20% threshold and applicable justifications.)

Enforcement and investigations

  • Attorneys General or local district attorneys can investigate suspected violations and may compel production of documents and testimony through written demands under oath.
  • The process includes service requirements, deadlines, confidentiality protections, and potential court-ordered compliance or modifications for fairness.
  • Violations may be pursued in circuit court; penalties and relief may be tailored through court orders.

Remedies, penalties, and damages

  • Class actions: The attorney general may sue on behalf of residents for actual damages or a minimum of $100 per violation.
  • Civil relief: Courts may issue injunctions, equitable relief, and civil penalties.
    • Individual violators: Up to $10,000 per violation.
    • Non-individuals (corporations, etc.): Up to $500,000 per violation.
  • Additional relief: Reimbursement to harmed consumers, rescission or modification of unconscionable contract clauses, and potential appointment of a receiver or asset sequestration for egregious conduct.
  • Treble damages: The court can award up to three times actual damages if warranted by flagrant violations.
  • Notice costs: The court may require the defendant to bear class notice costs based on the likelihood of the state’s success on the merits.
  • Limit on damages if bona fide error: If the violation resulted from a bona fide error despite reasonable procedures, damages may be limited to actuals.
  • statute of limitations: The attorney general cannot bring action more than 4 years after the conduct and no more than 1 year after the last payment in a related transaction.

Procedural and timeline aspects

  • Trigger window: The pricing protections apply during and reasonably after a declared emergency (up to 30 days after the end for “reasonably after” as defined).
  • Time-limited enforcement: The act provides a timeline for investigations and actions (e.g., notices, hearings, and court proceedings) and an overall liability window.
  • Joint enactment: The act becomes effective only if SB 1041 and SB 1043 are enacted, indicating a package approach to addressing related pricing protections (as reflected in the supporting materials).

Affected parties and practical impact

  • Affected entities: Chains of distribution for building materials, consumer food items, goods, services, emergency supplies, and medical supplies.
  • Geographic scope: Applies in counties, cities, or townships subject to a declared state of emergency in Michigan.
  • Consumers: Potential redress for price gouging or excessive pricing; access to injunctive relief and damages.
  • Businesses: Subject to price controls during emergencies and potential civil penalties, injunctive relief, and potential damages for violations.

Summary

SB 1042 establishes a regulatory framework to curb excessive pricing for essential goods and services during emergencies in Michigan. It defines what counts as excessive pricing, sets a 20% disparity threshold with allowed justifications, and provides robust enforcement mechanisms, including civil penalties, injunctive relief, and potential attorney general-led class actions. The act includes detailed investigative procedures and a framework for protecting consumers while allowing court-based remedies. Its effectiveness is contingent on the companion bills SB 1041 and SB 1043 becoming law.

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

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