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MI HB5342
Bill
Status
12/10/2025
Primary Sponsor
Alabas Farhat
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AI Summary
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Requires businesses to disclose automatic renewal provisions in consumer contracts clearly and conspicuously in at least 14-point type, including renewal terms, pricing, and cancellation procedures
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Mandates electronic notice to consumers 30-60 days before automatic renewal for contracts renewing for more than 2 months, informing them of the upcoming renewal and how to cancel
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Requires businesses to notify consumers every 6 months (or annually for facilities providing physical equipment) that they remain subscribed and will continue to be charged
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Prohibits charging cancellation fees at the end of initial terms, renewal periods, or free trial periods, and requires businesses to honor cancellation notices even if received after the notice period expires
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Requires businesses that sell contracts online to allow consumers to cancel exclusively online; contracts violating these requirements are voidable by the consumer
Legislative Description
Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.
Trade: business practices
Last Action
Bill Electronically Reproduced 12/10/2025
12/11/2025