Bill > SB0535

This bill amends the Michigan Consumer Protection Act to establish new requirements for businesses offering contracts with automatic renewal provisions. The bill mandates that businesses must clearly disclose automatic renewal terms in at least 14-point type, including details about contract length, pricing, renewal conditions, and cancellation procedures. Companies must provide electronic notice to consumers 30-60 days before renewal, explaining potential changes and offering a clear method to cancel. Businesses must also send electronic reminders every 6 months (or annually for certain service providers) informing consumers of their ongoing subscription. The bill prohibits charging cancellation fees, requires easy cancellation mechanisms, and allows consumers to void contracts that do not meet these disclosure requirements. Importantly, the bill does not apply to certain regulated industries like insurance or telecommunications services regulated by the Michigan Public Service Commission. The law defines key terms like "automatic renewal provision" and "easy-to-use mechanism" to ensure clarity and consistent implementation. This legislation aims to protect consumers from unexpected renewals and hidden contract terms by mandating transparent and accessible contract information.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0535