Advocacy News – Sept. 3, 2025
What’s new: The Michigan Chamber submitted an amicus brief to the Michigan Supreme Court (Court) last week, urging them to preserve the Court’s longstanding interpretation of the Michigan Consumer Protection Act (MCPA) and protect regulated businesses from abusive and duplicative litigation. The brief, which the MI Chamber coordinated, was submitted in conjunction with 14 other business and trade associations.
Why it matters: The Court is hearing a case challenging what’s known as the “regulatory compliance exemption” under the MCPA. The Attorney General (AG) is asking the Court to reverse two prior Court rulings and upend over two decades of legal precedent in this matter, opening the door to new and costly litigation opportunities against over 80 different regulated businesses, trades and professions.
- If the Court’s prior decisions are overturned, these entities and professions will be subject duplicate enforcement, legal battles and steep penalties. Think: frivolous and abusive litigation, class action lawsuits and treble damages, and inconsistent judgments from courts and regulators.
One thing to note: The MCPA currently does not apply to “[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.”
- In its prior decisions, the Court interpreted this to mean the following: if a person or company is licensed or approved to engage in a certain business or profession, and the transaction at issue falls within the scope of that license, that conduct falls outside the MPCA. While these rulings do not give a complete exemption to regulated industries from the MCPA (i.e., if the person or business is operating outside the scope of the occupation or profession, there could be an MCPA claim), they do provide protections.
The bottom line: If the AG is successful, nearly every industry and profession regulated under state and federal law will be subject to lawsuits, including class action lawsuits, under the MCPA. Industries and professions that would be impacted include:
- Hospitals
- Real estate brokers, agents, appraisers
- Accountants
- Collection agents, agencies
- Insurance agents
- Personnel agents, agencies
- Employment agents, agencies
- Consultant agents, agencies
- Morticians, funeral homes, cemeteries
- Architects, engineers, surveyors, landscape architects, community planners
- Foresters
- Residential builders, residential maintenance and construction contractors and salespersons
- Owners/operators/developers of condo projects
- Alcoholic beverage wholesalers and retailers
- Telecommunications companies
- Automakers
- Auto dealers and dealerships
- Mechanics and motor vehicle repair facilities
- Limousine companies
- Medical personnel including chiropractors, dentists, audiologists, therapists, physicians, nurses, optometrists, pharmacists, physical therapists, podiatrists, psychologists, physician assistants, occupational therapists, respiratory care professionals
- Nursing homes
- Counselors
- Social workers
- Plumbers
- Medical device retailers
- Forensic polygraph examiners
- Land surveyors
- Sanitarians
- Railroads
- Airlines
- Owners/operators of manufactured housing communities
- Local governments (relative to the services they provide)
- Investment brokers/advisors, finance Companies
- Mortgage brokers and lenders
- Casinos, horse racing tracks
- National banks and federal credit unions
- Firearm manufacturers and dealers
- Pharmaceutical companies
- Cosmetic retailers
- Grain and livestock dealers
- Animal shelters, dog pounds, pet shops, horse breeders
- Veterinarians
- Barbershop and cosmetology schools
- Barbers, cosmetologists, electrologists, manicurists, estheticians
- Hearing aid dealers, retailers and salespersons
- Insurers (for activities not covered under Chapter 20 of the Insurance Code)
What we’re saying: Read the brief submitted by the MI Chamber in conjunction with 14 other business and trade associations.
For questions or more information, contact Wendy Block.