Advocacy News – Aug. 6, 2026
What’s happening: In a 4-3 decision issued on the final day of its term, the Michigan Supreme Court narrowly ruled in favor of Attorney General Dana Nessel in Attorney General v. Eli Lilly and Company, overturning decades of precedent governing the Michigan Consumer Protection Act (MCPA).
- The decision significantly narrows the longstanding regulatory compliance exemption, expanding potential legal exposure for regulated businesses and licensed professionals across Michigan.
Why it matters: For decades, Michigan courts interpreted the MCPA to broadly exempt conduct and transactions already regulated by state or federal agencies, providing a clear framework for businesses operating under extensive government oversight. By overturning that precedent, the Court opens the door to additional litigation against employers, manufacturers, financial institutions, health care providers and other regulated industries even when they are already subject to comprehensive regulatory requirements – all while increasing the risk of duplicative litigation and higher compliance costs.
National landscape: The ruling comes as Michigan continues to face scrutiny over its civil justice system. Michigan has been named a “Judicial Hellhole” for three consecutive years by the American Tort Reform Association, and research estimates the state’s litigation environment contributes to the loss of nearly 100,000 job opportunities annually.
What we’re saying: “This decision upends decades of settled case law, exposing regulated employers and professionals to duplicative oversight, expanded litigation risk and higher costs,” said Michigan Chamber President & CEO Jim Holcomb. “It creates new opportunities for lawsuit abuse while making it more difficult for businesses to operate with the consistency and predictability they need to invest and grow.”
- The Chamber is also proud members of the Michigan Alliance for Legal Reform, a coalition of 45 Michigan associations and employers dedicated to restoring balance and fairness in Michigan’s legal system.
What’s next: Both the Michigan Chamber and Alliance support legislation to restore the longstanding regulatory compliance exemption as it existed under case law for decades. Advancing HB 5725 would help reestablish clear, predictable standards for regulated employers while discouraging unnecessary litigation.
Learn more: Read the state Supreme Court’s opinion, the Chamber’s statement on the court decision or contact Randy Gross for Qs or additional information.