Advocacy News – May 8, 2025
The Senate Finance, Insurance and Consumer Protection Committee this week took up Senate Bill 134, a proposal that could unleash a flood of costly lawsuits — including class action suits — against a wide range of Michigan businesses.
Why it matters: This legislation revives a controversial Lame Duck proposal that failed to advance last session. The bill would repeal the longstanding regulatory compliance exemption under the Michigan Consumer Protection Act (MCPA), exposing nearly every state-regulated industry and profession to litigation.
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Under current law, the MCPA does not apply to businesses whose conduct is “specifically authorized” by a regulatory board or officer. This exemption backed by Michigan Supreme Court decisions in Smith v. Glove Life Ins. Co. and Liss v. Lewiston-Richards, Inc. — protects licensed businesses from duplicative lawsuits when operating within the scope of their regulatory authority. SB 134 would eliminate that protection, creating overlapping liability and new legal risks, including treble damages and expanded class action exposure.
Go deeper: Read the coalition letter, organized by the Michigan Chamber, or contact Wendy Block with questions.