The proposed bill amends the Michigan Consumer Protection Act by adding a new section (Sec. 3j) that establishes specific requirements for consumer contracts with automatic renewal provisions. It mandates that businesses clearly disclose the automatic renewal terms in a conspicuous 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 renewal, ensuring that consumers are informed of their rights 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 charging additional fees for cancellation. 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 offered by the Michigan Public Service Commission. The new regulations aim to enhance consumer protection and transparency in automatic renewal contracts.

Statutes affected:
Senate Introduced Bill: 445.901, 445.922