Bill > HB5342

This bill amends the Michigan Consumer Protection Act to establish new requirements for consumer contracts with automatic renewal provisions. The legislation mandates that businesses clearly disclose automatic renewal terms in at least 14-point type, including specific details such as contract length, pricing, renewal procedures, and cancellation methods. Businesses must provide electronic notice to consumers 30-60 days before contract renewal, explaining any changes and offering a straightforward cancellation process. The bill also requires businesses to send electronic reminders every six months (or annually for certain physical service providers) that a consumer remains subscribed to a service. Importantly, businesses cannot charge cancellation fees, must honor timely cancellation requests, and must allow online cancellation for contracts initiated online. Consumers can void contracts that do not comply with these provisions. The law does not apply to telephone, wireless, or broadband services regulated by the Michigan Public Service Commission and only covers contracts extended, renewed, or modified after the law's effective date. The goal of this legislation is to increase transparency and protect consumers from unexpected automatic renewals and charges.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5342