Advocacy News – Oct. 23, 2024
What happened: The recently introduced Senate Bills, 1037-41, have significant implications for e-commerce marketing and advertising — radically expanding the current laws on telephone solicitation. Of the many new requirements within the bill package, the bills would also repeal and replace existing statute governing telephone solicitation:
- MCL 484.125 requires telephone solicitors to maintain a “do not call” list and are strictly prohibited from calling people on that list.
- The Home Solicitation Sales Act requires telephone solicitors to (a) provide written agreements on any sale, and (b) give the buyer three days to cancel.
Additionally, if enacted, the bills would create many new restrictions:
- No telephone solicitation using a recorded message.
- Applies to all residential customers with landline, wireless or VOIP.
- Special restrictions apply to use of automatic dialers.
- Cannot aid someone violating this law, if you know, should know or avoid knowing they are violating this law.
- Incredibly excessive fines — $25,000 per violation. Each call is a violation.
- Burden of proof for a defense is on the calling party.
- The MI Attorney General would have subpoena power over a company or individual, before a lawsuit is even filed.
- Individuals can sue for damages, attorney fees and it can be a class action.
Why it Matters: The package amends the established Consumer Protection Act to say that a violation of the new Robocalling Act is an “unfair, unconscionable or deceptive” practice. As such, private parties could sue a company for damages, attorney fees and it can be a class action.
What we’re saying: We argue that section 904(a)(1) provides an exemption [“A transaction or conduct specifically authorized under laws administered by a regulatory board or officer acting under statutory authority of this state or the United States.”] but SBs 1037-41 are trying to repeal that.
We want to hear from you! The MI Chamber is seeking your feedback to help us understand impacts and implications to the business community. Please reach out to Mike Alaimo at malaimo@michamber.com to make your voice heard.