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 conspicuous manner within the contract or offer. This includes details such as the initial contract term, renewal periods, pricing for both the initial term and renewals, and any changes in terms upon renewal. Additionally, consumers must receive an acknowledgment of these terms, including cancellation policies and an easy-to-use mechanism for canceling the contract.

Furthermore, the bill outlines the obligations of businesses regarding notifications and cancellations. For contracts longer than two months, businesses must provide electronic notice to consumers 30 to 60 days before the contract's end, detailing the renewal terms and cancellation procedures. It also prohibits businesses from charging fees for cancellation and requires them to honor cancellation requests regardless of when they are received. The bill specifies that any contract violating these provisions is voidable by the consumer and establishes enforcement mechanisms through the attorney general or prosecuting attorneys.

Statutes affected:
Substitute (S-1): 445.901, 445.922
Substitute (S-3): 445.901, 445.922
Senate Introduced Bill: 445.901, 445.922
As Passed by the Senate: 445.901, 445.922