WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(1)(ll) Violating section 3e, 3f, 3g, 3h, 3i, 3k, 3l, 3m, or 3o, or 3p.
Section 3 of Michigan's Consumer Protection Act enumerates the full list of unfair, unconscionable, or deceptive methods, acts, or practices that are unlawful in the conduct of trade or commerce. The bill amends subdivision (ll) to add a cross-reference to new section 3p, making a violation of the surveillance pricing prohibition an independently enumerated unfair trade practice under the Act. This structural integration means that the full enforcement apparatus of the MCPA — including the attorney general's injunctive authority under section 5 and private remedies under section 11 — applies to surveillance pricing violations, subject to the section-specific modifications the bill makes to those enforcement sections.
(1) 1 A person engaged in trade or commerce shall not use surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific individual or group of individuals based, in whole or in part, on personally identifiable information collected through electronic surveillance technology. Surveillance pricing includes the use of technological methods, systems, or tools, including, but not limited to, sensors, cameras, device tracking, biometric monitoring, artificial intelligence, machine learning, or other forms of observation or data collection and analysis, that are capable of gathering covered information about an individual's behavior, characteristics, biometrics, location, or other personal attributes, whether in physical or digital environments.MCL 445.903p(6)(d) in the sale of goods or services.
(2)(a)–(f) 1 A person is not in violation of subsection (1) if any of the following apply: (a) The difference in price of a good or service is based solely on costs associated with providing the good or service to different consumers. (b) A discounted price is offered through a loyalty, membership, or rewards program that consumers affirmatively enroll in, including, but not limited to, signing up for a mailing list, registering for promotional communications, or participating in a promotional event. (c) A discounted price is offered to members of a broadly defined group, including, but not limited to, teachers, active or retired military, senior citizens, or students, based on publicly disclosed eligibility criteria. (d) A discounted price is offered after a consumer directly and knowingly provides specific personally identifiable informationPersonally identifiable information"Personally identifiable information" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number.MCL 445.903p(6)(c) for the purpose of obtaining a discount. The nature and purpose of the consumer's disclosure of personally identifiable informationPersonally identifiable information"Personally identifiable information" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number.MCL 445.903p(6)(c) must be conveyed in clear and prominent terms in such a manner that an ordinary consumer would notice and understand the nature and purpose of providing the disclosure. (e) The person operates as an insurer as that term is defined in section 106 of the insurance code of 1956, 1956 PA 218, MCL 500.106. (f) The pricing or specific terms of extending credit, the refusal to extend credit on specific terms, or the refusal to enter into a transaction with a specific consumer, is based on information contained in a consumer report as that term is defined in section 603 of the fair credit reporting act, 15 USC 1681a.
(3) 2 A discounted price or reward offered under subsection (2) must be offered uniformly to all consumers who meet the disclosed eligibility criteria. The eligibility criteria, available discount, and any condition for receiving or earning a discount or reward must be clearly and conspicuously disclosed before any covered information is collected.
(4) 3 Any covered information collected under subsection (2) must be used solely for the purpose of offering or administering the applicable discount, cost-based pricing, or loyalty program, and must not be used for any other purpose, including, but not limited to, profiling, targeted advertising, or individualized price setting.
(5) 4 Any personally identifiable informationPersonally identifiable information"Personally identifiable information" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number.MCL 445.903p(6)(c) provided for the purpose of receiving a discounted price is not augmented or supplemented by personally identifiable informationPersonally identifiable information"Personally identifiable information" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number.MCL 445.903p(6)(c) obtained from a third party or by other means.
(6)(a)–(d) As used in this section: (a) "BehaviorBehavior"Behavior" or "behavioral" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including, but not limited to, an individual's political, personal, or professional affiliations, web browsing history, IP addresses, locations frequented, purchase history, financial circumstances, or inferences associated with a group, band, class, or tier of individuals with whom the individual is associated.MCL 445.903p(6)(a)" or "behavioral" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including, but not limited to, an individual's political, personal, or professional affiliations, web browsing history, IP addresses, locations frequented, purchase history, financial circumstances, or inferences associated with a group, band, class, or tier of individuals with whom the individual is associated. (b) "BiometricsBiometrics"Biometrics" means data or information generated by technological processing, measurement, or analysis of an individual's biological, physical, or behavioral characteristics, which can be processed for the purpose of uniquely identifying an individual, including all of the following characteristics: (i) A fingerprint. (ii) A voice print or recording. (iii) A scan or record of an eye, retina, or iris image. (iv) A facial map, scan, geometry, or template. (v) Genetic information. (vi) Other unique biological, physical, or behavioral patterns or characteristics.MCL 445.903p(6)(b)" means data or information generated by technological processing, measurement, or analysis of an individual's biological, physical, or behavioral characteristics, which can be processed for the purpose of uniquely identifying an individual, including all of the following characteristics: (i) A fingerprint. (ii) A voice print or recording. (iii) A scan or record of an eye, retina, or iris image. (iv) A facial map, scan, geometry, or template. (v) Genetic information. (vi) Other unique biological, physical, or behavioral patterns or characteristics. (c) "Personally identifiable informationPersonally identifiable information"Personally identifiable information" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number.MCL 445.903p(6)(c)" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number. (d) "Surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific individual or group of individuals based, in whole or in part, on personally identifiable information collected through electronic surveillance technology. Surveillance pricing includes the use of technological methods, systems, or tools, including, but not limited to, sensors, cameras, device tracking, biometric monitoring, artificial intelligence, machine learning, or other forms of observation or data collection and analysis, that are capable of gathering covered information about an individual's behavior, characteristics, biometrics, location, or other personal attributes, whether in physical or digital environments.MCL 445.903p(6)(d)" means offering or setting a customized price for a good or service for a specific individual or group of individuals based, in whole or in part, on personally identifiable informationPersonally identifiable information"Personally identifiable information" means individual qualities, features, attributes, or traits that could be used to uncover an individual's identity, including, but not limited to, all of the following: (i) Immutable characteristics, such as race, color, sex, eye color, or height. (ii) Mutable characteristics, such as weight, marital or relationship status, parental status, employment status, citizenship status, political or partisan affiliation, religious identity, or occupation. (iii) Any other information that could be used to uncover an individual's identity, including a Social Security number, full name, mailing address, or telephone number.MCL 445.903p(6)(c) collected through electronic surveillance technology. Surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific individual or group of individuals based, in whole or in part, on personally identifiable information collected through electronic surveillance technology. Surveillance pricing includes the use of technological methods, systems, or tools, including, but not limited to, sensors, cameras, device tracking, biometric monitoring, artificial intelligence, machine learning, or other forms of observation or data collection and analysis, that are capable of gathering covered information about an individual's behavior, characteristics, biometrics, location, or other personal attributes, whether in physical or digital environments.MCL 445.903p(6)(d) includes the use of technological methods, systems, or tools, including, but not limited to, sensors, cameras, device tracking, biometric monitoring, artificial intelligence, machine learning, or other forms of observation or data collection and analysis, that are capable of gathering covered information about an individual's behaviorBehavior"Behavior" or "behavioral" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including, but not limited to, an individual's political, personal, or professional affiliations, web browsing history, IP addresses, locations frequented, purchase history, financial circumstances, or inferences associated with a group, band, class, or tier of individuals with whom the individual is associated.MCL 445.903p(6)(a), characteristics, biometricsBiometrics"Biometrics" means data or information generated by technological processing, measurement, or analysis of an individual's biological, physical, or behavioral characteristics, which can be processed for the purpose of uniquely identifying an individual, including all of the following characteristics: (i) A fingerprint. (ii) A voice print or recording. (iii) A scan or record of an eye, retina, or iris image. (iv) A facial map, scan, geometry, or template. (v) Genetic information. (vi) Other unique biological, physical, or behavioral patterns or characteristics.MCL 445.903p(6)(b), location, or other personal attributes, whether in physical or digital environments.
Section 3p is the operative core of the bill. Subsection (1) flatly prohibits any person engaged in trade or commerce from using surveillance pricing — individualized or group-based pricing driven by personally identifiable information collected through electronic surveillance technology — in the sale of goods or services. The definition of surveillance pricing in subsection (6)(d) is notably broad, encompassing AI, machine learning, biometric monitoring, device tracking, sensors, cameras, and any other form of observation or data collection in physical or digital environments.
Subsections (2) through (5) construct a set of safe harbors and data-use guardrails. Permitted price differentiation includes cost-based differences, loyalty programs, group discounts, and consumer-initiated discounts with clear disclosure. Critically, safe-harbor discounts must be offered uniformly to all consumers meeting disclosed criteria, and any data collected under a safe harbor must be used solely for the stated purpose — not for profiling, targeted advertising, or individualized pricing. Personally identifiable information provided for a discount may not be augmented with third-party data.
(1)–(2) If the attorney general has probable cause to believe that a person has engaged, is engaging, or is about to engage in a method, act, or practice that is unlawful under section 3, and gives notice required by this section, the attorney general may bring an action in accordance with principles of equity to restrain the defendant by temporary or permanent injunction from engaging in the method, act, or practice. An action under this section may be brought in the circuit court of the county where the defendant is established or conducts business or, if the defendant is not established in this state, in the circuit court of Ingham County.
(3)–(5) The court may award costs to the prevailing party in an action under this section. Subject to subsection (5), for each persistent and knowing violation of section 3, the court in an action under this section may assess the defendant a civil fine of not more than $25,000.00. For a violation of section 3(1)(kk), each performance or production is a separate violation. For a violation of section 3l, the court may assess the defendant a civil fine of not more than $1,000.00 per violation. Each day a violation of section 3l occurs counts as a separate violation. For a violation of section 3p, the court may assess the defendant a civil fine of not more than $10,000.00 plus all revenues earned per violation. Each consumer or transaction involved in a violation of section 3p counts as a separate violation.
(6)–(7) Unless waived by the court on good cause shown not less than 10 days before the commencement of an action under this section, the attorney general shall notify the person of the intended action and give the person an opportunity to cease and desist from the alleged unlawful method, act, or practice or to confer with the attorney general in person, by counsel, or by other representative as to the proposed action before the proposed filing date. The notice required under subsection (6) may be given to the person by mail, postage prepaid, to the person's usual place of business or, if the person does not have a usual place of business, to the person's last known address, or, if the person is a corporation, only to a resident agent who is designated to receive service of process or to an officer of the corporation.
(8)–(10) A prosecuting attorney or law enforcement officer receiving notice of an alleged violation of this act, or of a violation of an injunction, order, decree, or judgment issued in an action brought under this section, or of an assurance under this act, shall immediately forward written notice of the violation together with any information that the prosecuting attorney or law enforcement officer has to the office of the attorney general. A person that knowingly violates the terms of an injunction, order, decree, or judgment issued under this section must forfeit and pay to the state a civil fine of not more than $5,000.00 for each violation. For the purposes of this section, the court issuing an injunction, order, decree, or judgment shall retain jurisdiction, the cause is continued, and the attorney general may petition for recovery of a civil fine as provided by this section.
Section 5 establishes the attorney general's enforcement authority for violations of section 3, including the new surveillance pricing prohibition in section 3p. The bill restructures the existing section into numbered subsections and adds a specific penalty provision for section 3p violations: a civil fine of up to $10,000 plus all revenues earned per violation, with each consumer or transaction involved counting as a separate violation. The revenue disgorgement component is significant — it allows the court to strip the full economic benefit of surveillance pricing, not merely impose a fixed penalty. The attorney general must give 10 days' notice before commencing an action unless waived by the court for good cause.
(1)(a)–(b) Whether or not a person seeks damages or has an adequate remedy at law, a person may bring an action to do either or both of the following: (a) Obtain a declaratory judgment that a method, act, or practice is unlawful under section 3. (b) Enjoin in accordance with the principles of equity a person that is engaging or is about to engage in a method, act, or practice that is unlawful under section 3.
(2) Except in a class action or as otherwise provided in subsection (3), and except for a violation of section 3p, a person that suffers a loss as a result of a violation of this act may bring an action to recover actual damages or $250.00, whichever is greater, together with reasonable attorney fees.
(4)(a)–(b) A person that suffers a loss as a result of a violation of this act may bring a class action on behalf of persons residing or injured in this state for the actual damages caused by any of the following: (a) A method, act, or practice in trade or commerce defined as unlawful under section 3, except for a violation of section 3p. (b) A method, act, or practice in trade or commerce declared to be unlawful under section 3(1), except for a violation of section 3p, by a final judgment of the circuit court or an appellate court of this state that is either reported officially or made available for public dissemination under section 9 by the attorney general not less than 30 days before the method, act, or practice on which the action is based occurs.
Section 11 governs private rights of action under the MCPA. The bill amends this section to expressly carve out section 3p violations from both the individual damages provision and the class action damages provision. A private person may still seek declaratory judgment that surveillance pricing is unlawful and may seek injunctive relief against a person engaging in it, but may not recover actual damages, statutory damages, or attorney fees for a section 3p violation. Class actions for damages are likewise barred for section 3p violations. This channeling of enforcement to the attorney general is a deliberate design choice — the private right is limited to equitable relief, while the monetary consequences flow exclusively through AG action.