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SB 991

Trade: consumer goods and services; use of certain algorithms and protected class data to set prices; prohibit. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.

2025-2026 Regular Session Introduced by Rosemary Bayer and 12 co-sponsors

Prohibits using pricing algorithms and protected-class data to set prices for consumer goods and services in Michigan, banning discriminatory or opaque pricing.

REFERRED TO COMMITTEE ON ECONOMIC AND COMMUNITY DEVELOPMENT
#trade:businessregulation #trade:consumergoodsandservices
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Bill Summary · SB 991

Bill overview

  • Bill: SB 991 (Michigan), 2025-2026 session
  • Title: Trade: consumer goods and services; use of certain algorithms and protected class data to set prices; prohibit. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.
  • Introduced: May 20, 2026 by Senator Mallory McMorrow
  • Committee assignment: Referred to the Senate Committee on Economic and Community Development
  • Primary and co-sponsors: Notable slate of 14 co-sponsors including Stephanie Chang, Sue Shink, Veronica Klinefelt, Rosemary Bayer, Darrin Camilleri, Sam Singh, Jeff Irwin, Kevin Hertel, Jeremy Moss, Mallory McMorrow, John Cherry, Erika Geiss, Dayna Polehanki

Purpose and intent

  • The bill seeks to prohibit the use of certain algorithms and protected-class data to set prices for consumer goods and services.
  • It amends the existing consumer protection framework (expanding or clarifying protections related to pricing practices) to prevent price discrimination or discriminatory pricing practices driven by algorithmic decision-making and sensitive demographic information.

Key provisions and changes

  • Amended statute: Section 3 of 1976 Public Act 331 (MCL 445.903) to incorporate prohibitions or constraints on pricing methods that rely on algorithmic tools and protected-class data.
  • New provision: Section 3j added to establish specific prohibitions, definitions, enforcement mechanisms, or penalties related to the use of algorithms and protected-class data in price setting.
  • Scope: Applies to pricing of consumer goods and services within Michigan. The exact scope (e.g., online vs. in-store, regulated sectors, exemptions) would be defined in the text, but SB 991 clearly targets algorithmic pricing practices and discriminatory data usage.
  • Protections likely targeted: Use of protected characteristics (e.g., race, ethnicity, gender, disability status, religion, etc.) and algorithmic decision processes to determine price points, discounts, surcharges, dynamic pricing, or personalized offers.

Who/what would be affected

  • Businesses and sellers offering consumer goods and services in Michigan that engage in price-setting activities, including those using automated pricing algorithms and customer data analytics.
  • Consumers: Intended beneficiaries are consumers who could be subject to discriminatory or opaque pricing practices.
  • Government and enforcement: State regulatory and enforcement agencies would be responsible for interpreting, enforcing, and potentially adjudicating violations, including penalties or injunctive relief as provided by the new section.

Procedural and timeline aspects

  • Status: Introduced and referred to the Senate Committee on Economic and Community Development (as of May 20, 2026).
  • Next steps: Committee consideration, potential amendments, votes in the Senate, and then passage to the House (and eventually to the governor for signature) following the standard Michigan legislative process.
  • Implementation timing: The bill text would specify effective dates for the new prohibitions and any phased-in compliance requirements; this detail is not provided in the summary but will be in the final bill language.

Potential impacts and considerations

  • Economic impact: Could affect how businesses set prices, potentially increasing compliance costs (policy disclosures, auditing of pricing algorithms, data governance) but may reduce legal risk from discriminatory pricing.
  • Consumer protection: Strengthens safeguards against discriminatory pricing practices and increases transparency in how prices are set.
  • Legal enforceability: Establishes new enforcement framework, including definitions, prohibited practices, and remedies; outcomes will depend on the precise language (e.g., penalties, private right of action, civil fines, injunctive relief).
  • Tech/Data implications: Encourages or requires scrutiny of algorithmic pricing models and use of data; may necessitate data governance, privacy considerations, and algorithmic accountability measures.

Summary

SB 991 proposes a targeted limitation on the use of pricing algorithms and protected-class data in determining prices for consumer goods and services in Michigan. By amending MCL 445.903 and adding a new section (3j), the bill aims to curb discriminatory or opaque dynamic pricing practices and establish a regulatory framework for enforcement. The measure would affect businesses utilizing pricing algorithms and data analytics, with the intent of protecting consumers from discriminatory pricing while outlining the procedural steps for implementation and enforcement through the state’s economic and community development oversight.

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

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