Michigan House Bill HB5637

Michigan 2025-2026 Regular Session

• Introduced: 2/26/26
• Refer: 2/26/26

Caption

Trade: consumer goods and services; disclosure of price adjustment due to tariff; require. Amends secs. 3 & 4 of 1976 PA 331 (MCL 445.903 & 445.904) & adds sec. 3j.

Impact

The enactment of HB 5637 will compel retailers and service providers to enhance their pricing practices, establishing a standard for transparency. By mandating the disclosure of tariff-related price adjustments, the bill seeks to protect consumers from unexpected costs that might arise due to external regulatory decisions. This aligns with broader consumer protection goals, ensuring that individuals are informed about the pricing practices of businesses they engage with.

Summary

House Bill 5637 amends the Michigan Consumer Protection Act to require businesses engaged in trade or commerce to disclose any price adjustments due to tariffs imposed by the United States or foreign governments. Specifically, this bill mandates that any price change resulting from such tariffs must be publicly disclosed within seven days and must also be itemized on consumer receipts. This aims to promote transparency between consumers and businesses regarding the reasons behind changes in prices of goods or services.

Contention

The bill, while aimed at protecting consumer interests, may face pushback from business advocates who argue that such regulations could lead to increased operational burden. Some may claim it could complicate pricing strategies, particularly for small businesses that may find it challenging to keep track of and execute price changes swiftly. Furthermore, there may be concerns regarding the potential for legal liability if businesses fail to comply with disclosure requirements in a timely manner.