Whitmer: State must protect its consumers
New law needed to put teeth into enforcement
As Michigan residents hit the stores this holiday season, they shop with confidence assuming they will be dealt with fairly and honestly. That may be true at the mall or most retail stores, but unfortunately, there are many other instances where consumers could be at risk of being taken advantage of. The state's economic woes have caused an increase in scams and other bad business practices.At the same time, Michigan's Consumer Protection Act - once revered as the most powerful in the country - continues to be watered down by politicians and their special interests.
The Michigan Consumer Protection Act was a bipartisan agreement instituted in 1976 that banned 29 unfair, deceptive or unconscionable business practices in the sale of goods and services and empowered the state attorney general to go to court to stop such conduct.
But over the last decade, it has been gutted by a Republican majority in the Michigan Supreme Court installed by Gov. John Engler. In two cases, the first in 1999 and the second in 2007, the court ruled to exempt most, if not all, businesses regulated by state or federal law, such as home improvement contractors, mortgage companies and plumbers.
These rulings broke 23 years of enforcement that the attorney general and consumer advocates relied on to hold businesses accountable for deceptive and unfair practices.
Many consumers are already struggling to make ends meet and support their families. Dishonest merchants can currently take advantage of customers in nearly every industry including credit and finance; gasoline, fuel and energy; and telecommunications, satellite and cable TV. With no teeth left in the Michigan Consumer Protection Act, there is nothing to keep businesses from taking advantage of Michigan citizens and leaves consumers with few options to defend themselves. We must properly hold deceitful businesses accountable for their practices.
That's why Michigan needs to restore the original intent of the Michigan Consumer Protection Act and I have introduced legislation in the Senate to do just that.
My bill, Senate Bill 573, will not only restore the act's true intent of consumer protection, but also help Michigan businesses compete on a level playing field instead of enabling companies to obtain a competitive edge by engaging in deceptive or unfair practices.
The Legislature no longer can sit idly by and allow Michigan's consumer protection law to continue to cater to unscrupulous businesses more than our citizens.
Too many of our state laws have been tinkered with to give more power to big business than the people, and now more than ever we should be putting our consumers first and keep Michigan's upstanding businesses competing fairly.
Passing my legislation and bolstering the Consumer Protection Act can help restore our reputation as a state that stands up for its citizens, and I hope my colleagues see its importance and address it soon.
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