Michigan Senate Bill SB0535

Michigan 2025-2026 Regular Session

• Introduced: 9/10/25
• Refer: 9/10/25

Caption

Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends 1976 PA 331 (MCL 445.901 - 445.922) by adding sec. 3j. TIE BAR WITH: SB 536'25

Impact

The introduction of SB 535 is poised to significantly impact the landscape of consumer contracts in Michigan. By mandating businesses to disclose automatic renewal terms in a clear manner and to inform consumers of their rights regarding cancellation, the bill seeks to empower consumers and protect them from being unknowingly locked into extended contracts. The act aims to ease the cancellation process, allowing consumers to cancel their subscriptions with timely and friendly notice requirements that must be honored by companies.

Summary

Senate Bill No. 535, known as the amendment to the Michigan Consumer Protection Act, aims to bring greater transparency and consumer rights concerning contracts that include automatic renewal provisions. This legislation would require businesses that sell goods or services under such contracts to provide clear and conspicuous disclosures in not less than 14-point type. The disclosures must cover essential specifics, including the terms of the automatic renewal, initial contract duration, renewal periods, pricing information, and cancellation procedures.

Contention

While proponents argue that this legislation provides necessary protections for consumers against manipulative renewal practices, there may be contention regarding its impact on businesses. Critics could argue that the added regulatory burden may result in increased costs, particularly for small businesses adapting to the new requirements. Additionally, there are concerns about how this bill might affect subscription services and their ability to operate seamlessly, especially given the technological requirements for electronic notifications and the clear disclosure of terms.

Further_provisions

SB 535 also introduces stringent rules around failure to comply, making consumer contracts that do not adhere to the new disclosures voidable by the consumer. This means that consumers can walk away from agreements that do not satisfy the stipulated criteria. However, the bill exempts certain businesses, including those offering regulated services like telephone or broadband, indicating a recognition of pre-existing regulatory environments. Overall, SB 535 aims to modernize consumer rights in Michigan, addressing concerns that have emerged as automatic renewals have become commonplace in various service sectors.