MICHIGAN TELECOMMUNICATIONS ACT (EXCERPT)
Act 179 of 1991
Article 5
PROHIBITED ACTIVITY


484.2501 Repealed. 1995, Act 216, Imd. Eff. Nov. 30, 1995.


Compiler's Notes: The repealed section pertained to providing harmful service.





484.2502 Provider of basic local exchange service; prohibited conduct; assurance of discontinuance of method, act, or practice.

Sec. 502.

    (1) A provider of a basic local exchange service shall not do any of the following:
    (a) Make a statement or representation, including the omission of material information, regarding the rates, terms, or conditions of providing a service that is intentionally false, misleading, or deceptive. As used in this subdivision, "material information" includes, but is not limited to, a good faith estimate of all applicable fees, taxes, and charges that will be billed to the end-user, regardless of whether the fees, taxes, or charges are authorized by state or federal law.
    (b) Charge an end-user for a subscribed service for which the end-user did not make an initial affirmative order. Failure to refuse an offered or proposed subscribed service is not an affirmative order for the service.
    (c) If an end-user has canceled a service, charge the end-user for service provided after the effective date the service was canceled.
    (d) Cause a probability of confusion or a misunderstanding as to the legal rights, obligations, or remedies of a party to a transaction by making an intentionally false, deceptive, or misleading statement or by failing to inform the customer of a material fact, the omission of which is deceptive or misleading.
    (e) Represent or imply that the subject of a transaction will be provided promptly, or at a specified time, or within a reasonable time, if the provider knows or has reason to know it will not be so provided.
    (f) Require the purchase of a regulated service of the provider as a condition of purchasing an unregulated service.
    (g) If a bona fide dispute exists between a customer and the provider, disconnect the service to the customer for nonpayment of that disputed amount.
    (2) When the commission has authority to bring a proceeding for a violation of this section, the commission may accept an assurance of discontinuance of a method, act, or practice that is alleged to be unlawful under this section from the person who is alleged to have engaged, be engaging, or be about to engage in the method, act, or practice. The assurance of discontinuance is not an admission of guilt and shall not be introduced in any other proceeding. Unless rescinded by the parties or voided by the court for good cause, the parties to the assurance of discontinuance may enforce the assurance in circuit court. The assurance of discontinuance may include a stipulation for any of the following:
    (a) The voluntary payment by the person for the cost of investigation.
    (b) An amount to be held in escrow pending the outcome of an action.
    (c) An amount for restitution to an aggrieved person.


History: Add. 1995, Act 216, Imd. Eff. Nov. 30, 1995 ;-- Am. 2000, Act 295, Imd. Eff. July 17, 2000 ;-- Am. 2005, Act 235, Imd. Eff. Nov. 22, 2005 ;-- Am. 2011, Act 58, Imd. Eff. June 14, 2011 ;-- Am. 2014, Act 52, Imd. Eff. Mar. 25, 2014





484.2503 Use of unpublished telephone number from telephone caller identification service.

Sec. 503.

    A person who obtains an unpublished telephone number using a telephone caller identification service shall not do any of the following without the written consent of the customer of the unpublished telephone number:
    (a) Disclose the unpublished telephone number to another person for commercial gain.
    (b) Use the unpublished telephone number to solicit business.
    (c) Intentionally disclose the unpublished telephone number through a computer data base, on-line bulletin board, or other similar mechanism.


History: Add. 1995, Act 216, Imd. Eff. Nov. 30, 1995 ;-- Am. 2000, Act 295, Imd. Eff. July 17, 2000 ;-- Am. 2011, Act 58, Imd. Eff. June 14, 2011





484.2504 Repealed. 2011, Act 58, Imd. Eff. June 14, 2011.


Compiler's Notes: The repealed section pertained to filing small and minority owned telecommunication business participation plan.





484.2505 Switching to another telecommunications provider; authorization of end user required.

Sec. 505.

    (1) An end user of a telecommunications provider shall not be switched to another provider without the authorization of the end user.
    (2) The commission shall issue orders to ensure that an end user of a telecommunications provider is not switched to another provider without the end user's oral authorization, written confirmation, confirmation through an independent third party, or other verification procedures subject to commission approval, confirming the end user's intent to make a switch and that the end user has approved the specific details of the switch. The order issued under this section shall require that all providers comply with the regulations established by the federal communications commission on verification procedures for the switching of an end user's telecommunications provider.


History: Add. 1998, Act 260, Eff. Oct. 1, 1998 ;-- Am. 2005, Act 235, Imd. Eff. Nov. 22, 2005
Popular Name: Slamming





484.2506 Violation of MCL 484.2505 or MCL 484.2507; contested case; hearings; remedies and penalties; exception; finding of frivolous complaint or defense.

Sec. 506.

    (1) Upon the receipt of a complaint filed by a person alleging a violation of section 505 or 507, an end-user who has been switched to another provider or had services added in violation of section 505 or 507, or a provider who has been removed as an end-user's provider without the end-user's authorization, or upon the commission's own motion, the commission may conduct a contested case as provided under section 203. The commission shall create, and shall supply upon request, a form affidavit designed to enable an end-user to provide all information necessary to promote efficient resolution of complaints alleging a violation of section 505 or 507. Hearings conducted under this section shall comply with the following requirements:
    (a) Hearings shall be conducted in a manner as to optimize expediency, convenience, and the ability of end-users to bring and prosecute, without the assistance of counsel, complaints alleging violations of section 505 or 507, while preserving the rights of the parties.
    (b) If possible, the commission shall hold the hearing at a location near the end-user's residence or place of business.
    (2) If the commission finds that a person has violated section 505 or 507 or an order issued under section 505 or 507, the commission shall order remedies and penalties to protect and make whole end-users and other persons who have suffered damages as a result of the violation, including, but not limited to, 1 or more of the following:
    (a) Order the person to pay a fine for the first offense of not less than $20,000.00 or more than $30,000.00. For a second and any subsequent offense, the commission shall order the person to pay a fine of not less than $30,000.00 or more than $50,000.00. If the commission finds that the second or any of the subsequent offenses were knowingly made in violation of section 505 or 507, the commission shall order the person to pay a fine of not more than $70,000.00. Each switch made in violation of section 505 or service added in violation of 507 shall be a separate offense under this subdivision.
    (b) Order an unauthorized provider to refund to the end-user any amount greater than the end-user would have paid to an authorized provider.
    (c) Order a portion between 10% to 50% of the fine assessed under subdivision (a) be paid directly to the customer who suffered the violation of section 505 or 507.
    (d) Order an unauthorized provider to reimburse an authorized provider an amount equal to the amount paid by the end-user that should have been paid to the authorized provider.
    (e) If the person is licensed under this act, revoke the license if the commission finds a pattern of violations of section 505 or 507.
    (f) Issue cease and desist orders.
    (3) Notwithstanding subsection (2), a fine shall not be imposed for a violation of section 505 or 507 if the provider has otherwise fully complied with sections 505 and 507 and shows that the violation was an unintentional and bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the error. Examples of a bona fide error include clerical, calculation, computer malfunction, programming, or printing errors. An error in legal judgment with respect to a person's obligations under section 505 is not a bona fide error. The burden of proving that a violation was an unintentional and bona fide error is on the provider.
    (4) If the commission finds that a party's complaint or defense filed under this section is frivolous, the commission shall award to the prevailing party costs, including reasonable attorney fees, against the nonprevailing party and their attorney.


History: Add. 1998, Act 259, Eff. Oct. 1, 1998 ;-- Am. 2000, Act 295, Imd. Eff. July 17, 2000





484.2507 Optional services; authorization of end-user.

Sec. 507.

    (1) A telecommunications provider shall not include or add optional services in an end-user's telecommunications service package without the express oral or written authorization of the end-user.
    (2) Upon the receipt of a complaint filed by a person alleging a violation of this section or upon the commission's own motion, the commission may conduct a contested case as provided under section 203.


History: Add. 2000, Act 295, Imd. Eff. July 17, 2000



Rendered 8/17/2025 6:12 PM
Michigan Compiled Laws Complete Through PA 5 of 2025
Courtesy of legislature.mi.gov