Michigan House Bill HB5342

Michigan 2025-2026 Regular Session

• Introduced: 12/10/25
• Refer: 12/10/25

Caption

Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.

Impact

If enacted, HB5342 will significantly enhance consumer rights by mandating clear and conspicuous disclosures about automatic renewals in contracts. This means that consumers will be better informed about ongoing obligations and charges, thereby reducing the likelihood of unintentional contract renewals. The law will also stipulate that any contracts renewing for more than two months require advance notice to consumers, allowing them the opportunity to cancel if desired. The legislation aligns with broader efforts to empower consumers and safeguard against unfair trade practices.

Summary

House Bill 5342 is an amendment to the Michigan Consumer Protection Act, focusing specifically on automatic renewal provisions in consumer contracts. This legislation requires that any consumer contract with an automatic renewal clause must clearly inform the consumer about the nature of the renewal, including the renewal period, the fees involved, and the process for cancellation. The bill aims to protect consumers from being locked into contracts without adequate notice and transparency regarding the terms and conditions of the contract renewals.

Contention

The bill may encounter opposition from businesses that rely on automatic renewals as an integral part of their revenue model. Critics may argue that such requirements could complicate business practices and lead to decreased sales due to increased consumer scrutiny. There may also be concerns regarding the administrative burden on companies to comply with these new disclosure standards, particularly for small businesses. As consumer advocacy groups generally support the bill for its intent to enhance consumer rights, the legislative discussions may highlight the tension between consumer protection and business interests.