LANSING – Recently, the Michigan Supreme Court reversed the decisions in Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc. (PDF), which rendered Michigan’s Consumer Protection Act inapplicable to deceptive business practices and price gouging when it was done by a business that held a license or similar authorization from a State or Federal agency — even in situations where the agency had no tools at its disposal to protect consumers from such wrongdoing. These decisions have prevented the Department of Attorney General from investigating or litigating a wide range of misconduct affecting the daily lives of consumers.

Michigan Attorney General Dana Nessel, who appealed an order preventing her Department’s investigation of Eli Lilly and Company’s insulin pricing practices, issued the following video and statement in response. The video is free and available for public use.

“The Michigan Consumer Protection Act was once the envy of consumer protection efforts across the nation, and today we can once again claim that mantle with these two abhorrent decisions off the books. Now, our extraordinary Consumer Protection Team can go back to helping residents who have been deceived by licensed businesses. We will no longer have to turn away parents who were price-gouged for baby formula at the grocery store or hardworking Michiganders who were swindled by deceptive used car contracts. We will no longer have our hands tied while pharmaceutical giants squeeze households over insulin and other necessary medications.

“Today is a great day for Michigan residents, and I am profoundly relieved that the Michigan Supreme Court finally restored the Consumer Protection Act to its true purpose. What was once rendered toothless can now protect the people of our state who fall victim to predatory commercial operators.”