Advocacy News – March 19, 2026
What’s new: New legislation (HB 5725) was introduced in the Michigan House this week to codify the regulatory compliance exemption within the Michigan Consumer Protection Act.
- This long-standing standard ensures businesses already regulated by state or federal law are not subject to duplicative regulatory requirements. It maintains clear guardrails and accountability for licensed and regulated industries through existing regulations.
What’s at risk: The current exemption faces a two-pronged threat in Lansing:
- Legislation: Another bill, SB 134, would repeal it.
- Courts: The Nessel vs. Eli Lilly & Co. case before the Michigan Supreme Court.
Regulated employers could face:
- Overlapping or conflicting regulations
- Much greater litigation exposure
- Higher compliance and legal costs
Why it matters: Businesses operating under established regulatory frameworks depend on clear, consistent rules.
- Removing this exemption would create uncertainty and increase costs – with ripple effects extending to small businesses, workers and consumers across Michigan’s economy.
What we’re saying: The MI Chamber supports HB 5725 to preserve this long-standing protection and opposes efforts – in both the Legislature and the courts – that would undermine it.
Go deeper: Read a coalition letter organized by the Michigan Chamber opposing SB 134, and an amicus brief in Nessel vs. Eli Lilly & Co. safeguarding the regulatory compliance exemption.
- We’re also a proud member of the Michigan Alliance for Legal Reform, a coalition effort to advance commonsense legal reforms like HB 5725.