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MI HB4826

MI HB4826
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: HB 4827'25


summary

Introduced
08/27/2025
In Committee
08/27/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1976 PA 331, entitled"Michigan consumer protection act,"(MCL 445.901 to 445.922) by adding section 3j.

AI Summary

This bill amends the Michigan Consumer Protection Act to establish comprehensive regulations for automatic renewal provisions in consumer contracts. The bill requires businesses to clearly and conspicuously disclose automatic renewal terms in at least 14-point type, including details about contract length, pricing (including promotional rates), renewal procedures, and cancellation methods. Businesses must provide electronic notice 30-60 days before contract renewal for contracts longer than two months, informing consumers about upcoming renewals and cancellation options. Additionally, businesses must send electronic notifications every six months (or annually for certain physical equipment services) reminding consumers of their subscription status. The bill prohibits charging cancellation fees, mandates an easy-to-use cancellation mechanism with prompt confirmation, and allows consumers to void contracts that do not comply with these requirements. Importantly, the law does not apply to certain regulated industries like insurance or telecommunications services regulated by the Michigan Public Service Commission. The bill aims to increase transparency and protect consumers from unexpected contract renewals and charges by ensuring clear, upfront information about subscription terms and straightforward cancellation processes.

Committee Categories

Government Affairs

Sponsors (18)

Last Action

Bill Electronically Reproduced 08/27/2025 (on 08/28/2025)

bill text


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