NEWS RELEASE
MICHIGAN ATTORNEY GENERAL
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LANSING – Michigan Attorney General Dana Nessel, state Senators Jeremy Moss and Mary Cavanaugh, and state Representatives Jason Hoskins and Laurie Pohutsky on Tuesday participated in a roundtable to highlight Senate Bills 954-956 and House Bills 5895-5897. The legislative package aims to strengthen protections against price gouging during an emergency declaration or a market disruption.
“Price gouging is an exploitive practice, especially during emergencies when consumers are most vulnerable,” Nessel said. “I am proud to be here today helping to advocate for this package of bills, after years of advocacy and work alongside some of these legislators, to strengthen consumer protection in our State. Our continual goal, toward which this legislation would move us greatly forward, is to keep Michigan an excellent state in which to run your business, and to make Michigan the worst state in the nation to rip off customers.”
“We must hold unscrupulous businesses accountable when they exploit vulnerable consumers by unfairly raising costs of goods and services. That’s why I’m joining with Attorney General Dana Nessel and my Democratic colleagues to strengthen Michigan’s price gouging law,” said Senator Moss. “We need more effective tools for enforcement to prevent bad actors from gouging consumers. I’m determined to lead this effort to prevent unjustified rising costs for Michigan families.”
The Attorney General has been a strong advocate for consumer protection against price gouging. In July, Nessel filed a lawsuit against several tree service companies for allegedly deceiving and price gouging consumers seeking storm clean-up services. She has also reached compliance agreements with Novi Hilton and pharmacies suspected of price gouging. However, under the current Michigan Consumer Protection Act, action is only possible when a single business, or a small group of businesses, raises prices excessively compared to others, not if sellers hike their rates in unison.
The proposed legislation targets price gouging on consumer goods, emergency supplies, lodging and energy products like gasoline or propane. It defines price gouging as selling goods or services at more than a 10 percent increase from the price immediately before the emergency or market disruption. The legislation would allow sellers to justify price increases and outlines legal actions the Department of Attorney General or local prosecutors can take against violators, as well as penalties for those found in violation.
The bill package has been referred to the Senate Finance, Insurance, and Consumer Protection Committee and House Economic Development and Small Business Committee.
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