Consumer protection; unfair trade practices; application of

Michigan consumer protection act to acts permitted by law;

clarify.

CONSUMER PROTECTION: Unfair trade practices; CIVIL PROCEDURE:

Defenses

A bill to amend 1976 PA 331, entitled

"Michigan consumer protection act,"

by amending section 4 (MCL 445.904), as amended by 2000 PA 432.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4. (1) This act does not apply to either APPLIES TO

2 ANY UNFAIR, UNCONSCIONABLE, OR DECEPTIVE METHOD, ACT, OR PRACTICE

3 AND CREATES A CAUSE OF ACTION AGAINST A COMPANY WHO ENGAGES IN

4 THAT METHOD, ACT, OR PRACTICE, EXCEPT FOR ANY of the following:

5 (a) A transaction or conduct specifically authorized under

6 laws administered by a regulatory board or officer acting under

7 statutory authority METHOD, ACT, OR PRACTICE THAT IS EXPRESSLY

8 PERMITTED BY A STATUTE, RULE, OR REGULATION of this state or the

9 United States.

10 (b) An act done by the A publisher, owner, agent, or

11 employee of a newspaper, periodical, directory, radio or

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1 television station, or other communications medium in the

2 publication or dissemination of an advertisement unless the pub-

3 lisher, owner, agent, or employee knows or, under the circum-

4 stances, reasonably should know of the false, misleading, or

5 deceptive character of the advertisement or has a direct finan-

6 cial interest in the sale or distribution of the advertised

7 goods, property, or service.

8 (C) (2) Except for the purposes of an action filed by a

9 person under section 11, this act does not apply to or create a

10 cause of action for an unfair, unconscionable, or deceptive

11 method, act, or practice that is made unlawful by any of the

12 following:

13 (i) (a) The banking code of 1999, 1999 PA 276,

14 MCL 487.11101 to 487.15105.

15 (ii) (b) 1939 PA 3, MCL 460.1 to 460.10cc.

16 (iii) (c) The motor carrier act, 1933 PA 254, MCL 475.1 to

17 479.43.

18 (iv) (d) The savings bank act, 1996 PA 354, MCL 487.3101

19 to 487.3804.

20 (v) (e) 1925 PA 285, MCL 490.1 to 490.31.

21 (D) (3) This act does not apply to or create a cause of

22 action for an AN unfair, unconscionable, or deceptive method,

23 act, or practice that is made unlawful by chapter 20 of the

24 insurance code of 1956, 1956 PA 218, MCL 500.2001 to 500.2093.

25 (4) The burden of proving an exemption from this act is

26 upon the person claiming the exemption.

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1 (2) A PERSON WHO CLAIMS THIS ACT DOES NOT APPLY TO A METHOD,

2 ACT, OR PRACTICE BECAUSE OF AN EXCEPTION TO SUBSECTION (1) OR ANY

3 OTHER EXEMPTION FROM THIS ACT BEARS THE BURDEN OF PROVING THAT

4 EXCEPTION OR EXEMPTION.

5 (3) AS USED IN THIS SECTION, "COMPANY" MEANS A PERSON

6 ENGAGED IN TRADE OR COMMERCE, INCLUDING, BUT NOT LIMITED TO, A

7 PERSON WHOSE PROFESSION, OCCUPATION, CONDUCT, OR TRANSACTIONS ARE

8 REGULATED BY A STATUTE, RULE, OR REGULATION OF THIS STATE OR THE

9 UNITED STATES.

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