Capitol News

The Michigan Supreme Court is considering a case that could alter how the state's consumer protection law applies to regulated businesses and professions. On Wednesday, justices heard oral arguments in Attorney General v. Eli Lilly and Company, which challenges the “regulatory compliance exemption” found in the Michigan Consumer Protection Act (MCPA).

Attorney General Dana Nessel is seeking to overturn two prior court decisions—Smith (1999) and Liss (2007)—that have defined the scope of this exemption for more than twenty years. If these rulings are reversed, over 80 regulated industries and professions could be exposed to new litigation risks, including duplicate enforcement actions, inconsistent legal outcomes, class action lawsuits, treble damages, and increased legal costs.

The MCPA was enacted in 1976 to prohibit unfair or deceptive business practices. It gives authority to the Attorney General, prosecutors, and consumers to investigate or file lawsuits against violators. However, it exempts conduct that is “specifically authorized” by other state or federal regulatory bodies. Previous court interpretations have applied this exemption broadly to avoid overlapping regulations and unnecessary lawsuits.

The Michigan Chamber of Commerce has taken an active role in defending the current interpretation of the law. "Read our latest brief, which we coordinated with 14 other business and trade associations," stated the organization.

If the Supreme Court decides in favor of Nessel’s argument, nearly every state-regulated profession could become vulnerable to lawsuits under the MCPA—even if they already comply with existing oversight from regulatory agencies. Sectors that may be affected include hospitals; real estate professionals; banks; accountants; insurance agents; builders; auto dealers; utilities; medical personnel such as pharmacists and physicians; engineers; plumbers; funeral homes; investment advisors; manufacturers; telecoms; casinos; cosmetic retailers; veterinarians; local governments regarding their services provided; railroads and airlines.

"There is no deadline for the Court to issue its opinion, but their current term will conclude in late June or early July 2026, when the last opinions are released," according to information provided by the Michigan Chamber of Commerce.

For further details or inquiries about this case, interested parties can contact info@michamber.com.