DISCLOSURE IN PRIZE OFFERS H.B. 5127 (S-1): FLOOR ANALYSIS
House Bill 5127 (Substitute S-1 as reported by the Committee of the Whole) Sponsor: Representative Paul Tesanovich
House Committee: Commerce
Senate Committee: Economic Development, International Trade and Regulatory Affairs
The bill would amend the Michigan Consumer Protection Act to extend the Act’s definition of unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce, to offering a consumer a prize if the consumer were required to submit to a sales presentation in order to claim the prize, unless a written disclosure were given to the consumer at the time he or she was notified of the prize. A written disclosure would have to meet all of the following:
-- Be written or printed in at least 10-point bold type.
-- Fully describe the prize, including its cash value, won by the consumer.
-- Contain all the terms and conditions for claiming the prize, including a statement that the consumer was required to submit to a sales presentation.
-- Fully describe the product, real estate, investment, service, membership, or other item that was or would be offered for sale, including the price of the least expensive item and the most expensive item.
MCL 445.903 Legislative Analyst: P. Affholter
The bill would have no fiscal impact on State or local government.
Date Completed: 5-7-96 Fiscal Analyst: B. Bowerman
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.