Michigan AG Dana Nessel Backs Tougher Laws to Combat Data Breaches and Price Gouging

Michigan lawmakers are advancing legislation to enhance consumer protections against data breaches and price gouging during emergencies. Proposed bills would require timely reporting of data breaches and define price gouging, enabling legal actions against violators. Attorney General Dana Nessel supports these reforms to address rising cyberattacks and protect vulnerable consumers.

In a push to strengthen consumer protections, Michigan lawmakers are considering legislation that would require stricter data breach reporting and prevent price gouging during emergencies.

Michigan AG Testifies in Support of Consumer Protection Bills

LANSING, MI – Representatives from the Michigan Department of Attorney General testified before the Senate Committee on Finance, Insurance, and Consumer Protection in support of new legislation aimed at protecting consumers from data breaches and price gouging. The legislative packages—Senate Bills 888-892 and Senate Bills 954-956—seek to bolster state laws and ensure timely reporting of data breaches and stricter controls on pricing during emergencies.

Attorney General Dana Nessel emphasized the importance of these reforms, stating, “Michigan must join the majority of states that already require Attorney General notification of data breaches and hold price gougers accountable.” She urged lawmakers to pass the legislation, highlighting the increased frequency of data breaches affecting millions of Michigan residents.

Data Breach Protections: Closing the Reporting Gap

With cyberattacks on the rise, such as the recent McLaren and Change Healthcare breaches, the proposed data breach bills—Senate Bills 888-892—would require companies that suffer breaches impacting 100 or more Michigan residents to notify the Attorney General’s Office within 45 days. Currently, Michigan law does not mandate such notification, leaving authorities to learn about incidents through media reports.

The bills aim to expand consumer protections by:

Requiring third-party vendors to notify clients immediately after a data breach.
Establishing a 45-day notice deadline after a breach is discovered.
Mandating that companies safeguard consumer information.
Giving the Attorney General’s Office investigative authority and the ability to seek injunctive relief and penalties.

By enforcing these measures, Michigan would join 36 other states that already have similar protections in place.

Cracking Down on Price Gouging During Emergencies

In addition to data breach reforms, Senate Bills 954-956 focus on preventing price gouging during emergencies or market disruptions. The bills define price gouging as raising prices by more than 10 percent on essential goods, services, and energy products like gasoline or propane.

AG Nessel has a track record of taking action against price gouging, including a recent lawsuit against tree service companies exploiting storm victims. However, under current laws, her office can only act if a single business or small group engages in price gouging, leaving gaps in enforcement when widespread price hikes occur.

The proposed legislation would allow for:

A clear definition of price gouging during emergencies.
Legal actions against violators, with penalties for those found guilty.
Justifications for legitimate price increases to prevent abuse of the law.

“Passing these bills would affirm our commitment to defending consumers’ interests in the face of ever-increasing data breaches and businesses looking to hike prices when residents are most vulnerable,” Nessel said.

With data breaches and economic instability becoming more frequent, Michigan’s lawmakers face increasing pressure to enhance protections for the state’s residents.

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