The proposed bill amends the Michigan Consumer Protection Act by adding a new section (Sec. 3j) that establishes specific requirements for consumer contracts that include automatic renewal provisions. It mandates that businesses must clearly disclose the automatic renewal terms in a prominent manner, using at least 14-point type. The disclosure must include details such as the initial contract term, renewal periods, pricing information, cancellation procedures, and any changes in terms upon renewal. Additionally, businesses are required to provide electronic notice to consumers before the contract renews, ensuring that consumers are informed of their ability to cancel the contract.

Furthermore, the bill prohibits businesses from automatically renewing contracts for more than two months without prior electronic notification to the consumer. It also outlines the obligations of businesses to honor cancellation requests and prohibits them from charging fees for cancellation at the end of the contract term. The bill specifies that any consumer contract that does not comply with these provisions is voidable by the consumer. However, it exempts certain regulated services, such as those provided by the Michigan Public Service Commission, from these requirements.

Statutes affected:
House Introduced Bill: 445.901, 445.922