BizLawBuz …. The Power of Know

This past March, amidst much hoopla and media attention, the Michigan legislature passed, and Governor Rick Snyder signed into law, the Michigan Shopping Reform and Modernization Act. This new law requires the full purchase price (exclusive of sales taxes and deposits) of most consumer items sold at retail be clearly displayed in the store where the item is located, by means of signage, electronic reader, price stickers or any other method that reasonably and clearly conveys the price to consumers. This changes the previous requirement under Michigan law that every individual item had to be marked with its price. The law, which goes into effect on September 1, 2011, includes the following:

• The law applies only to consumer items, which are defined as articles of tangible personal property bought, used or consumed primarily for personal, family or household purposes;

• While the responsibility for the implementation and administration of the law lies with the Michigan Department of Agriculture and Rural Development, the Michigan Attorney General may file an action to enjoin continuing violations of the law by sellers and seek the imposition of fines and penalties for intentional violations;
• In order to receive a bonus penalty equal to (10) times the difference between the price displayed and the price charged, the price must have been displayed in accordance with the law and the sale must have been transacted by use of an automatic checkout system (electronic scanner);
• The law contains thirteen (13) categories of consumer items to which it does not apply, ranging from items sold by weight or volume which are not pre-packaged, to live plants, unpackaged food items, motor vehicles and motor vehicle parts;
• While a seller may charge a price lower than the displayed price, it may not knowingly charge or to attempt to charge a price for a consumer item that is higher than the displayed price; and
• Complaints of scanner overcharges should be directed to the Michigan Department of Agriculture & Rural Development, Weights & Measures Section (phone number: 517-655-8202.)

If an automatic checkout system charges a customer more than the displayed price for an item, the transaction has been completed and the customer has a receipt showing the price charged, it is the responsibility of the customer to notify the seller in person or in writing of the overcharge within thirty (30) days. Within two (2) days of receiving the notice of overcharge the seller may choose to refund the difference between the amount charged and the price displayed, plus a bonus equal to ten (10) times the difference, with a minimum of $1.00 to a maximum of $5.00. If the seller refuses to pay both the difference and the bonus, the customer may bring a civil suit to recover actual damages or $250.00, whichever is greater, plus reasonable attorney fees up to $300.00.

The entire text of the new law, along with a helpful summary prepared by the Michigan Attorney General’s office, can be found at here. You can also obtain on-line complaint forms and a pocket sized “Scanner Error Bill of Rights” from the Consumer Protection Division of the Michigan Attorney General’s office.

Duane L. Reynolds

On March 25, Wright Penning & Beamer was pleased to co-sponsor a luncheon that brought our state’s new governor, Rick Snyder, to Farmington Hills to address an audience of nearly 700 school, civic and business leaders. The event featured welcoming remarks from the mayors of Farmington, Farmington Hills and Livonia, and was jointly hosted by the Chambers of Commerce of those cities.

Governor Snyder graciously met one-on-one with several dozen attendees prior to the luncheon, including Dirk Beamer and myself. In his address, the Governor spoke at length about his vision for the state, and about the significant economic challenges facing us. Following his formal remarks, he took questions from the audience on a number of topics, ranging from education to unions.

All in all, his message was very hopeful. He acknowledged that a number of the difficult decisions he has had to make will negatively impact nearly everyone in the short run, but he emphasized the necessity of making temporary sacrifices in order to regain long-term prosperity. He also stressed his belief that spending cuts alone will not be sufficient. Michigan must also create an environment where businesses can thrive, which in turn will result in the creation of new jobs, the retention of homes and the return of workers who have left the state in search of employment.

Wright Penning & Beamer applauds the good work of the Livonia and Greater Farmington Area Chambers of Commerce in bringing Governor Snyder to our area. The luncheon not only gave the local community an opportunity to hear directly from the governor at a time when many are anxious about what lies ahead, but it also provided a forum where their questions and concerns could be heard.

Lee Flaherty