HB-6175, As Passed House, September 29, 2004

















September 9, 2004, Introduced by Rep. Mortimer and referred to the Committee on Criminal Justice.

























                                                                                 A bill to amend 1976 PA 331, entitled                                             


    "Michigan consumer protection act,"                                         


    by amending section 3 (MCL 445.903), as amended by 2002 PA 613.             


                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      


1       Sec. 3.  (1) Unfair, unconscionable, or deceptive methods,                  


2   acts, or practices in the conduct of trade or commerce are                  


3   unlawful and are defined as follows:                                        


4       (a) Causing a probability of confusion or misunderstanding as               


5   to the source, sponsorship, approval, or certification of goods             


6   or services.                                                                


7       (b) Using deceptive representations or deceptive designations               


8   of geographic origin in connection with goods or services.                  


9       (c) Representing that goods or services have sponsorship,                   


10  approval, characteristics, ingredients, uses, benefits, or                  


11  quantities that they do not have or that a person has                       



1   sponsorship, approval, status, affiliation, or connection that he           


2   or she does not have.                                                       


3       (d) Representing that goods are new if they are deteriorated,               


4   altered, reconditioned, used, or secondhand.                                


5       (e) Representing that goods or services are of a particular                 


6   standard, quality, or grade, or that goods are of a particular              


7   style or model, if they are of another.                                     


8       (f) Disparaging the goods, services, business, or reputation                


9   of another by false or misleading representation of fact.                   


10      (g) Advertising or representing goods or services with intent               


11  not to dispose of those goods or services as advertised or                  


12  represented.                                                                


13      (h) Advertising goods or services with intent not to supply                 


14  reasonably expectable public demand, unless the advertisement               


15  discloses a limitation of quantity in immediate conjunction with            


16  the advertised goods or services.                                           


17      (i) Making false or misleading statements of fact concerning                


18  the reasons for, existence of, or amounts of price reductions.              


19      (j) Representing that a part, replacement, or repair service                


20  is needed when it is not.                                                   


21      (k) Representing to a party to whom goods or services are                   


22  supplied that the goods or services are being supplied in                   


23  response to a request made by or on behalf of the party, when               


24  they are not.                                                               


25                                                                               (l) Misrepresenting that because of some defect in a                                


26  consumer's home the health, safety, or lives of the consumer or             


27  his or her family are in danger if the product or services are              


1   not purchased, when in fact the defect does not exist or the                


2   product or services would not remove the danger.                            


3       (m) Causing a probability of confusion or of misunderstanding               


4   with respect to the authority of a salesperson, representative,             


5   or agent to negotiate the final terms of a transaction.                     


6       (n) Causing a probability of confusion or of misunderstanding               


7   as to the legal rights, obligations, or remedies of a party to a            


8   transaction.                                                                


9       (o) Causing a probability of confusion or of misunderstanding               


10  as to the terms or conditions of credit if credit is extended in            


11  a transaction.                                                              


12      (p) Disclaiming or limiting the implied warranty of                         


13  merchantability and fitness for use, unless a disclaimer is                 


14  clearly and conspicuously disclosed.                                        


15      (q) Representing or implying that the subject of a consumer                 


16  transaction will be provided promptly, or at a specified time, or           


17  within a reasonable time, if the merchant knows or has reason to            


18  know it will not be so provided.                                            


19      (r) Representing that a consumer will receive goods or                      


20  services "free" or "without charge", or using words of similar              


21  import in the representation, without clearly and conspicuously             


22  disclosing with equal prominence in immediate conjunction with              


23  the use of those words the conditions, terms, or prerequisites to           


24  the use or retention of the goods or services advertised.                   


25      (s) Failing to reveal a material fact, the omission of which                


26  tends to mislead or deceive the consumer, and which fact could              


27  not reasonably be known by the consumer.                                    


1       (t) Entering into a consumer transaction in which the                       


2   consumer waives or purports to waive a right, benefit, or                   


3   immunity provided by law, unless the waiver is clearly stated and           


4   the consumer has specifically consented to it.                              


5       (u) Failing, in a consumer transaction that is rescinded,                   


6   canceled, or otherwise terminated in accordance with the terms of           


7   an agreement, advertisement, representation, or provision of law,           


8   to promptly restore to the person or persons entitled to it a               


9   deposit, down payment, or other payment, or in the case of                  


10  property traded in but not available, the greater of the agreed             


11  value or the fair market value of the property, or to cancel                


12  within a specified time or an otherwise reasonable time an                  


13  acquired security interest.                                                 


14      (v) Taking or arranging for the consumer to sign an                         


15  acknowledgment, certificate, or other writing affirming                     


16  acceptance, delivery, compliance with a requirement of law, or              


17  other performance, if the merchant knows or has reason to know              


18  that the statement is not true.                                             


19      (w) Representing that a consumer will receive a rebate,                     


20  discount, or other benefit as an inducement for entering into a             


21  transaction, if the benefit is contingent on an event to occur              


22  subsequent to the consummation of the transaction.                          


23      (x) Taking advantage of the consumer's inability reasonably                 


24  to protect his or her interests by reason of disability,                    


25  illiteracy, or inability to understand the language of an                   


26  agreement presented by the other party to the transaction who               


27  knows or reasonably should know of the consumer's inability.                


1       (y) Gross discrepancies between the oral representations of                 


2   the seller and the written agreement covering the same                      


3   transaction or failure of the other party to the transaction to             


4   provide the promised benefits.                                              


5       (z) Charging the consumer a price that is grossly in excess                 


6   of the price at which similar property or services are sold.                


7       (aa) Causing coercion and duress as the result of the time                  


8   and nature of a sales presentation.                                         


9       (bb) Making a representation of fact or statement of fact                   


10  material to the transaction such that a person reasonably                   


11  believes the represented or suggested state of affairs to be                


12  other than it actually is.                                                  


13      (cc) Failing to reveal facts that are material to the                       


14  transaction in light of representations of fact made in a                   


15  positive manner.                                                            


16      (dd) Subject to subdivision (ee), representations by the                    


17  manufacturer of a product or package that the product or package            


18  is 1 or more of the following:                                              


19                                                                               (i) Except as provided in subparagraph (ii), recycled,                               


20  recyclable, degradable, or is of a certain recycled content, in             


21  violation of guides for the use of environmental marketing                  


22  claims, 16  C.F.R.  CFR part 260.                                           


23      (ii) For container holding devices regulated under part 163                  


24  of the natural resources and environmental protection act, 1994             


25  PA 451, MCL 324.16301 to 324.16303, representations by a                    


26  manufacturer that the container holding device is degradable                


27  contrary to the definition provided in that act.                            


1       (ee) Representing that a product or package is degradable,                  


2   biodegradable, or photodegradable unless it can be substantiated            


3   by evidence that the product or package will completely decompose           


4   into elements found in nature within a reasonably short period of           


5   time after consumers use the product and dispose of the product             


6   or the package in a landfill or composting facility, as                     


7   appropriate.                                                                


8       (ff) Offering a consumer a prize if in order to claim the                   


9   prize the consumer is required to submit to a sales presentation,           


10  unless a written disclosure is given to the consumer at the time            


11  the consumer is notified of the prize and the written disclosure            


12  meets all of the following requirements:                                    


13                                                                               (i) Is written or printed in a bold type that is not smaller                        


14  than 10-point.                                                              


15      (ii) Fully describes the prize, including its cash value, won                


16  by the consumer.                                                            


17      (iii) Contains all the terms and conditions for claiming the                 


18  prize, including a statement that the consumer is required to               


19  submit to a sales presentation.                                             


20      (iv) Fully describes the product, real estate, investment,                   


21  service, membership, or other item that is or will be offered for           


22  sale, including the price of the least expensive item and the               


23  most expensive item.                                                        


24      (gg) Violating 1971 PA 227, MCL 445.111 to 445.117, in                      


25  connection with a home solicitation sale or telephone                       


26  solicitation, including, but not limited to, having an                      


27  independent courier service or other third party pick up a                  


1   consumer's payment on a home solicitation sale during the period            


2   the consumer is entitled to cancel the sale.                                


3       (hh) If a credit card or debit card is used for payment in a                


4   consumer transaction, issuing or delivering a receipt to the                


5   consumer that displays any part of the expiration date of the               


6   card or more than the last 4 digits of the consumer's account               


7   number.  This subdivision does not apply if the only receipt                


8   issued in a consumer transaction is a credit card or debit card             


9   receipt on which the account number or expiration date is                   


10  handwritten, mechanically imprinted, or photocopied.  This                  


11  subdivision applies to any consumer transaction that occurs on or           


12  after March 1, 2005, except that if a credit or debit card                  


13  receipt is printed in a consumer transaction by an electronic               


14  device, this subdivision applies to any consumer transaction that           


15  occurs using that device only after 1 of the following dates, as            


16  applicable:                                                                 


17                                                                               (i) If the electronic device is placed in service after March                       


18  1, 2005, July 1, 2005 or the date the device is placed in                   


19  service, whichever is later.                                                


20      (ii) If the electronic device is in service on or before                     


21  March 1, 2005, July 1, 2006.                                                


22      (2) The attorney general may promulgate rules to implement                  


23  this act under the administrative procedures act of 1969, 1969              


24  PA 306, MCL 24.201 to 24.328.  The rules shall not create an                


25  additional unfair trade practice not already enumerated by this             


26  section.  However, to assure national uniformity, rules shall not           


27  be promulgated to implement subsection (1)(dd) or (ee).                     


1       Enacting section 1.  This amendatory act takes effect March                 


2   1, 2005.