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SB-535, As Passed Senate, June 25, 2026
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SUBSTITUTE FOR
SENATE BILL NO. 535
A bill to amend 1976 PA 331, entitled
"Michigan consumer protection act,"
(MCL 445.901 to 445.922) by adding section 3j.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3j. (1) A person engaged in trade or commerce that sells, 1
leases, or offers to sell or lease a service or good to a consumer 2
under a consumer contract with an automatic renewal provision shall 3
disclose the automatic renewal provision in a clear and conspicuous 4
manner in the contract or contract offer. A disclosure under this 5
subsection must include all of the following: 6
(a) That the contract will automatically renew if the consumer 7
agrees to the contract. 8
(b) The length of the initial term of the contract and the 9
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length of each renewal period under the contract. 1
(c) The amount to be charged to the consumer for the initial 2
term of the contract and the amount to be charged to the consumer 3
for any renewal period, including, but not limited to, both of the 4
following: 5
(i) The terms of any promotional or discounted price for a 6
limited period of time. 7
(ii) If the contract or contract offer includes a free gift or 8
trial period, a clear and conspicuous explanation of the price that 9
will be charged after the trial period ends or the manner in which 10
the pricing will change on conclusion of the free gift or trial 11
period. 12
(d) If any terms of the contract will change on contract 13
renewal, a list and explanation of those terms. 14
(e) That, after the consumer agrees to the contract, the 15
consumer will receive an acknowledgment that includes the terms of 16
the automatic renewal provision, cancellation policy, and 17
information regarding how to cancel the contract in a form that is 18
capable of being retained by the consumer. 19
(f) That the consumer may cancel the contract up to the day 20
before the renewal is processed. 21
(g) An easy-to-use mechanism to cancel the contract. 22
(2) After a consumer enters into a contract with a person 23
engaged in trade or commerce under subsection (1), the person shall 24
provide an acknowledgment, in a form capable of being retained by 25
the consumer, that includes the terms of the automatic renewal 26
provision, the cancellation policy, and information regarding how 27
to cancel using the easy-to-use mechanism to cancel the contract 28
required under subsection (3). If the contract includes a free gift 29
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or trial period, the acknowledgment must also disclose how to 1
cancel the contract before the consumer pays for the goods or 2
services. 3
(3) A person engaged in trade or commerce under this section 4
shall provide a consumer who accepts a consumer contract with an 5
automatic renewal provision an easy-to-use mechanism to cancel the 6
contract. If a consumer uses an easy-to-use mechanism to cancel the 7
contract, the person shall promptly provide a confirmation of 8
cancellation to the consumer. 9
(4) A person engaged in trade or commerce under this section 10
shall not automatically renew a consumer contract for a specified 11
period of more than 2 months unless the person provides the 12
consumer with electronic notice before the end of the contract term 13
that meets both of the following requirements: 14
(a) Sets forth in a clear and conspicuous manner all of the 15
following: 16
(i) That unless the consumer cancels the contract, the contract 17
will automatically renew. 18
(ii) That the consumer may cancel the contract up to the day 19
before the renewal is processed. 20
(iii) A list and explanation of any terms of the contract that 21
will change on contract renewal. 22
(iv) The specific procedure by which the consumer may cancel 23
the contract. 24
(v) An easy-to-use mechanism to cancel the contract. 25
(b) Is served on the consumer not less than 30 days and not 26
more than 60 days before the last day on which the consumer may 27
give notice of the consumer's intent to cancel the contract. 28
(5) A person engaged in trade or commerce under this section 29
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shall do all of the following, as applicable: 1
(a) For a subscription that is 1 year or longer, 2
electronically notify the consumer not less than 15 days and not 3
more than 45 days before the automatic renewal of the subscription 4
that the consumer is subscribed to the person's service, that the 5
consumer will continue to pay if no action is taken by the 6
consumer, and instructions on how to cancel the subscription. 7
(b) For a subscription that is month-to-month, if any of the 8
terms of the contract change from the previous month on contract 9
renewal, provide a receipt to the consumer with a monthly charge 10
electronically, if the consumer has provided the person with an 11
email, or by mail, if the consumer has elected to have notices 12
delivered by mail. A consumer may elect to opt out of receiving a 13
receipt required under this subdivision. 14
(c) For a subscription trial or discounted service that is for 15
less than 1 month at a provided rate before resuming the standard 16
price for the subscription or service, notify the consumer not less 17
than 3 days but not more than 15 days before the standard price 18
resumes. 19
(6) A person engaged in trade or commerce under this section 20
shall not do any of the following: 21
(a) Fail to allow the consumer a minimum of 30 calendar days 22
after the receipt of the electronic notice under subsection (4) to 23
give notice of the consumer's intent to cancel the contract at the 24
end of the initial term or at the end of any additional renewal 25
period. 26
(b) Fail to honor a cancellation notice timely given by a 27
consumer under this section, regardless of whether the person 28
receives the cancellation notice before or after the expiration of 29
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the notice period. 1
(c) Charge an additional cost or penalty to cancel a contract 2
at the end of the initial term, at the end of any additional 3
renewal period, or, if applicable, at the end of a free gift or 4
trial period. 5
(7) A consumer contract that is contrary to this section is 6
voidable by the consumer. 7
(8) This section applies only to a contract that takes effect 8
or is extended, renewed, or modified after the effective date of 9
the amendatory act that added this section. 10
(9) This section does not apply to a business, or any 11
affiliate of that business, offering telephone, wireless, or 12
broadband services that is regulated by the Michigan public service 13
commission. 14
(10) If a person engaged in trade or commerce under this 15
section shows that a violation of this section was not intentional 16
and resulted from a bona fide error made notwithstanding the 17
maintenance of procedures reasonably adopted to avoid such error, 18
the person is not in violation of this section. 19
(11) This section may be enforced only by the attorney general 20
or a prosecuting attorney. A person other than the attorney general 21
or a prosecuting attorney shall not bring an action under section 22
11 in relation to a violation of this section. 23
(12) As used in this section: 24
(a) "Automatic renewal provision" means a provision under 25
which a consumer contract is renewed for a specified period of more 26
than 1 month unless the consumer gives notice of the consumer's 27
intent to cancel the contract. 28
(b) "Clear and conspicuous" means either of the following: 29
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(i) For a print disclosure, in larger type than the surrounding 1
text, or in contrasting type, font, or color to the surrounding 2
text of the same size, or set off from the surrounding text of the 3
same size by symbols or other marks, in a manner that clearly calls 4
attention to the language. 5
(ii) For an audio disclosure, in a volume and cadence 6
sufficient to be readily audible and understandable. 7
(c) "Consumer contract" or "contract" means a contract for the 8
sale or lease of a service or good to a consumer. Consumer contract 9
does not include any of the following contracts: 10
(i) A contract by a person that is regulated under the 11
insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, or by 12
an affiliate of person under this subparagraph. 13
(ii) A service contract as that term is defined in section 125 14
of the insurance code of 1956, 1956 PA 218, MCL 500.125. 15
(iii) A contract that is cancelable by the consumer at any time 16
for a pro rata refund of any unearned amounts. 17
(d) "Easy-to-use mechanism to cancel the contract" means a 18
clear, readily accessible, cost-effective, and user-friendly method 19
that a consumer may use to cancel a contract with an automatic 20
renewal provision regardless of the method that the consumer 21
initially used to enter into the contract. Easy-to-use mechanism to 22
cancel the contract includes, but is not limited to, all of the 23
following methods: 24
(i) If the person engaged in trade or commerce under this 25
section maintains a public website for business purposes, a 26
dedicated and easily discoverable option on the public website with 27
a minimal number of straightforward steps. 28
(ii) An easily accessible toll-free telephone number that is 29
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Final Page
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answered during normal business hours. 1
(iii) An email address. 2
(iv) If the person engaged in trade or commerce under this 3
section directly bills the consumer, a mailing address. 4
Enacting section 1. This amendatory act does not take effect 5
unless Senate Bill No. 536 of the 103rd Legislature is enacted into 6
law. 7