The Michigan Supreme Court announced July 31 a 4-3 decision in Nessel v. Eli Lilly, narrowly overturning the regulatory compliance exemption in the Michigan Consumer Protection Act (MCPA) and upending existing Michigan case law.
The exemption has been included in the MCPA for several decades and ensures that transactions or conduct already regulated by state or federal law are not subject to duplicative MCPA oversight. This long-standing framework has provided certainty, stability and predictability for licensed professions and regulated industries, including healthcare.
Without the exemption, these regulated industries face higher operational and legal costs – which ultimately are passed on to consumers – and potentially threaten access to regulated healthcare services. The MHA is currently evaluating what the impact will be on the membership and will provide a more extensive analysis in the near future.
The MHA is also part of the Michigan Alliance for Legal Reform, a coalition of wide-ranging business groups and associations, and is working with the coalition to provide education and advocacy tools on the negative impact of the ruling.
The MHA and the Michigan Alliance for Legal Reform support House Bill 5725, sponsored by Rep. Bill G. Schuette (R-Midland), which would codify the regulatory compliance exemption in state law. The bill currently awaits further action in the House Judiciary Committee. A one-pager from the alliance is available that outlines the importance of the regulatory compliance exemption.
Members with questions should contact Adam Carlson at the MHA.
Phone: (517) 703-8601
Fax: (517) 703-0628
