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Consumer protection: other; surveillance pricing; prohibit. Amends secs. 3, 5 & 11 of 1976 PA 331 (MCL 445.903 et seq.) & adds sec. 3p.

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Michigan House Bill 5771 amends the Michigan Consumer Protection Act (1976 PA 331) by modifying Sections 3, 5, and 11 (MCL 445.903, 445.905, and 445.911) and adding a new Section 3p to prohibit 'surveillance pricing.' Section 3p prohibits any person engaged in trade or commerce from using surveillance pricing, defined as offering or setting a customized price for a good or service for a specific individual or group based, in whole or in part, on personally identifiable information collected through electronic surveillance technology—including sensors, cameras, device tracking, biometric monitoring, artificial intelligence, machine learning, or other forms of data collection and analysis. Exemptions include price differences based solely on cost-of-service differences, opt-in loyalty or rewards programs, discounts for broadly defined groups (such as teachers, military, seniors, or students) with publicly disclosed eligibility criteria, discounts where a consumer directly and knowingly provides specific personally identifiable information to obtain a discount (provided clear disclosure is given), insurers, and credit decisions based on consumer reports under the Fair Credit Reporting Act. Any covered information collected under an exemption must be used solely for the stated purpose and not for profiling, targeted advertising, or individualized price setting. Discounts must be offered uniformly to all consumers who meet disclosed eligibility criteria. Section 5 is amended to add specific civil penalties for surveillance pricing violations: a civil fine of up to $10,000 plus all revenues earned per violation, with each consumer or transaction counting as a separate violation. Section 11 is amended to exclude Section 3p violations from individual private actions (other than class actions) and from class actions under the bill's standard class-action provisions, limiting enforcement primarily to the attorney general and class actions for actual damages.

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