Price Gouging and Data Breaches: What Michigan Senate’s New Bills Mean for You

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Democratic lawmakers in Michigan take bold steps to protect consumers from fraud, price gouging, and data breaches, targeting vulnerable residents and ensuring corporate accountability.

Senate Democrats Propose Tougher Consumer Protections Amid Rising Fraud and Scams

In a series of new legislative proposals, Michigan Senate Democrats are seeking to bolster consumer protections, cracking down on price gouging during emergencies and improving safeguards for residents' personal data. The Senate Finance, Insurance, and Consumer Protection Committee heard testimonies on Tuesday from bill sponsors and experts as the Senate moves forward with bills aimed at holding businesses accountable for fraudulent and exploitative practices.

Among the notable efforts are Senate Bills 888–892, spearheaded by Sen. Rosemary Bayer (D-West Bloomfield), which seek to enhance the protection of personal information, such as health and biometric data. This package aims to expand the definition of personal data and require companies to notify affected consumers and the state attorney general in the event of a data breach. If a breach compromises sensitive information, companies will be mandated to provide affected consumers with free identity theft protection for two years.

“We can and must do better for our Michigan consumers,” said Bayer, reflecting on her personal experience as a victim of data breaches. The legislation brings Michigan closer to the standards already adopted by 37 other states.

Stricter Penalties for Scams Targeting Seniors and Price Gouging During Emergencies

Sen. Sam Singh (D-East Lansing) introduced Senate Bills 1021 and 1022, which strengthen the Michigan Consumer Protection Act by eliminating exemptions for regulated entities involved in fraudulent activities. These bills empower the Attorney General's office to investigate and enforce actions against businesses that prey on Michigan’s elderly and vulnerable populations. They also create a fund dedicated to consumer protection education and enforcement efforts, crucial in reducing the growing number of scams targeting seniors.

Additionally, Sen. Jeremy Moss (D-Southfield) and Sen. Mary Cavanagh (D-Redford Twp.) are leading efforts to prevent price gouging in times of emergency. Their bills, SB 954-956, specifically target price surges in lodging, essential goods, and energy services during declared emergencies. Moss highlighted the urgency of the legislation, saying, "We must hold unscrupulous businesses accountable when they exploit vulnerable consumers."

Sen. Cavanagh reinforced the need for strong consumer protections, especially in times of market instability, adding that energy services must remain affordable even during market disruptions. "This legislation is a crucial step in preventing businesses from exploiting Michiganders for profit," she said.

Next Steps for Consumer Protection Bills

The proposed bills now await a vote from the committee before moving on to the full Senate for consideration. With growing bipartisan concerns about price gouging, data privacy, and scams, the future of Michigan’s consumer protection laws looks set for significant reform.

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