If you sell online to Michigan consumers, the Michigan Consumer Protection Act (MCPA) applies to how you describe products, advertise prices and discounts, promise delivery, and handle refunds. A buyer who loses money because of a deceptive practice can sue for actual damages or $250, whichever is greater, plus reasonable attorney fees, and the Attorney General can seek injunctions and civil fines. Since July 31, 2026, holding a license or operating under a regulatory framework also gives Michigan businesses much less cover than it once did, because the Michigan Supreme Court narrowed the MCPA exemption that many regulated businesses relied on.
As an online seller in Michigan, you gain access to customers across the state. That broad reach also creates responsibilities that are easy to overlook. A product description, delivery promise, or return policy can become the source of a consumer dispute if it misleads buyers.
What Does the Michigan Consumer Protection Act Cover?
The MCPA prohibits “unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce” (MCL 445.903(1)). The Act defines trade or commerce as a business providing goods, property, or services primarily for personal, family, or household purposes, and the definition expressly includes advertising, solicitation, offering for sale, and sale (MCL 445.902(1)(g)). That reaches products sold through your own online store, a marketplace storefront, or a social media shop. Sales made to other businesses for business use generally fall outside the Act’s consumer protections.
For an online seller, the Act effectively governs the customer’s entire purchase experience. Do product descriptions accurately reflect what is being sold? Do advertised prices hide mandatory charges until the final checkout screen? Are delivery estimates, discounts, warranties, and refund terms presented clearly and honestly?
Section 3 of the Act lists more than 30 specific prohibited practices. Several map directly onto everyday e-commerce decisions:
- Misrepresenting characteristics. Representing that goods have characteristics, ingredients, uses, benefits, or quantities that they do not have (MCL 445.903(1)(c)).
- Bait advertising. Advertising goods with intent not to dispose of them as advertised (MCL 445.903(1)(g)).
- Fake discounts. Making false or misleading statements of fact about the reasons for, existence of, or amounts of price reductions (MCL 445.903(1)(i)). Inflated “was” prices and perpetual “sales” fall here.
- Delivery promises. Representing that an order will arrive promptly or by a specified time when the merchant knows or has reason to know it will not (MCL 445.903(1)(q)).
- “Free” offers. Advertising something as free without clearly and conspicuously disclosing, with equal prominence, the conditions attached (MCL 445.903(1)(r)).
- Hidden material facts. Failing to reveal a material fact that tends to mislead the consumer and that the consumer could not reasonably know (MCL 445.903(1)(s)).
- Refunds. Failing to promptly return a payment when a transaction is canceled or terminated under your own policy, an advertisement, or law (MCL 445.903(1)(u)).
If a dispute arises, that does not automatically mean you violated the law. The specific facts, your conduct, and the provision at issue all shape how a case unfolds. A pattern of misleading claims or unclear disclosures, however, creates legal risk that is usually avoidable. For a broader look at the federal and state rules that sit alongside the MCPA, see our guide to e-commerce laws in 2026.
Why the 2026 Michigan Supreme Court Decision Matters
The MCPA does not apply to “[a] transaction or conduct specifically authorized under laws administered by a regulatory board or officer acting under statutory authority of this state or the United States” (MCL 445.904(1)(a)). The business claiming that exemption bears the burden of proving it (MCL 445.904(4)).
For more than two decades, Michigan courts read that exemption broadly. In Smith v Globe Life Ins Co, 460 Mich 446 (1999), and Liss v Lewiston-Richards, Inc, 478 Mich 203 (2007), the Michigan Supreme Court asked whether the general transaction was specifically authorized, not whether the particular misconduct alleged was authorized. In practice, many licensed and regulated businesses were largely outside the MCPA.
On July 31, 2026, the Court changed course in Attorney General v Eli Lilly and Company (Docket No. 165961). In a 4-3 decision, the Court overruled Smith and Liss, held that MCL 445.904(1)(a) is a narrow exemption, and adopted a new test: courts must first identify the specific transaction or conduct the plaintiff alleges violates the MCPA, and then decide whether that specific transaction or conduct, rather than the general transaction, is specifically authorized by law.
For online sellers, the decision matters most if your business operates in a regulated industry, or if you sell anything under a license or agency oversight. Holding a license or complying with industry regulations does not, by itself, shield you from an MCPA claim. The question now is whether the particular advertising claim, fee, or sales practice being challenged was specifically authorized by law.
The Legislature has not amended the exemption. As of this writing, the current text of MCL 445.904 was last amended in 2014. Bills that would revise the exemption, including House Bill 5725 (introduced March 2026) and House Bill 6305 (introduced August 2026), remain in committee. Sellers should watch for changes, but for now the Eli Lilly test controls.
What Remedies and Penalties Does the MCPA Provide?
Exposure can be significant when one practice affects many customers:
- Individual claims. A person who suffers a loss may recover actual damages or $250, whichever is greater, together with reasonable attorney fees (MCL 445.911(2)).
- Class actions. Consumers may bring a class action on behalf of persons residing or injured in Michigan for actual damages (MCL 445.911(4)). The $250 minimum does not apply in a class action, but actual damages across thousands of orders add up quickly.
- Declaratory and injunctive relief. A person may seek a declaration that a practice is unlawful and an injunction against it, whether or not they seek damages (MCL 445.911(1)).
- Attorney General enforcement. The Attorney General may sue for an injunction and, for persistent and knowing violations, the court may assess a civil fine of up to $25,000. Knowingly violating a resulting injunction or judgment carries a fine of up to $5,000 per violation (MCL 445.905).
The Act gives sellers one meaningful defense: if you show by a preponderance of the evidence that a violation resulted from a bona fide error despite procedures reasonably adapted to avoid it, recovery is limited to actual damages (MCL 445.911(8)). Claims generally must be brought within 6 years of the practice or 1 year after the last payment in the transaction, whichever ends later (MCL 445.911(9)). Written compliance procedures matter.
What Should Online Sellers Review Now?
Start with the parts of your business that customers see before and after they pay:
- Product claims. Confirm every claim about features, ingredients, origin, and performance is accurate and can be substantiated.
- Pricing. Show mandatory fees early, and make sure any reference or “compare at” price reflects a real former price.
- Urgency alerts. Remove countdown timers, low-stock warnings, and “sale ends tonight” banners that are not true. Our post on fake sales, countdown timers, and dark patterns covers this in detail.
- Shipping and delivery. Align shipping costs and delivery estimates with what your fulfillment actually achieves.
- Cancellation, warranty, and refund terms. State them clearly, disclose any warranty disclaimers conspicuously, and issue refunds promptly when your policy says you will.
- Advertising. Make sure ads match what you can actually provide, including available stock.
- Complaint handling. Train staff to handle complaints consistently and to escalate patterns.
After Eli Lilly, regulatory compliance and MCPA compliance are two separate concerns. A permit or regulatory authorization alone no longer keeps a regulated seller outside the Act. Reviewing your sales practices now can help identify problems before they escalate. If a customer has threatened legal action, several buyers have raised similar concerns, or your business previously relied on the MCPA exemption, it is wise to consult experienced Michigan business lawyers, and if a suit has already been filed, civil litigation counsel.
Frequently Asked Questions
Does the Michigan Consumer Protection Act apply to online sellers located outside Michigan?
It can. The Act regulates trade or commerce involving goods sold primarily for personal, family, or household purposes, and it allows the Attorney General to sue a defendant that is not established in Michigan in the Ingham County Circuit Court.
How much can a customer recover under the MCPA?
An individual who suffers a loss can recover actual damages or $250, whichever is greater, plus reasonable attorney fees. In a class action, members recover actual damages.
What did Attorney General v Eli Lilly and Company change?
On July 31, 2026, the Michigan Supreme Court overruled Smith v Globe Life and Liss v Lewiston-Richards and held that the MCPA exemption in MCL 445.904(1)(a) is narrow. Courts now ask whether the specific transaction or conduct being challenged is specifically authorized by law, not whether the business or general type of transaction is regulated.
Are fake discounts and countdown timers illegal under Michigan law?
They can be. The MCPA prohibits false or misleading statements about the existence, reasons for, or amounts of price reductions. A “sale” that never ends or a timer that resets can fall within those provisions.
We Are Here to Help
For help assessing your exposure under the Michigan Consumer Protection Act and guidance on what changes to make to your product pages, pricing, and policies, contact the experienced business lawyers at Revision Legal. You can contact us online or call (855) 473-8474.
This post is general information and is not legal advice.
