A Michigan Supreme Court ruling handed down today could reshape how regulated industries and licensed professions across the state operate—and business groups say the Legislature needs to step in fast.
The case, Nessel v. Eli Lilly, strikes at the Michigan Consumer Protection Act’s regulatory compliance exemption—a legal shield that has long protected businesses and professionals from duplicative lawsuits when their conduct is already overseen by state or federal regulators. The ruling overturns two decades of precedent set in Smith v. Globe Life Insurance Company (1999) and Liss v. Lewiston-Richards Inc. (2007), and opens the door to new layers of litigation risk for industries that are already heavily regulated.
The Michigan Alliance for Legal Reform, a coalition of 45 associations and employers, is calling on lawmakers to act now. House Bill 5725, which would codify the exemption directly into the MCPA, is currently sitting in the Michigan House Judiciary Committee.
Voices from across the state’s business community—including the Small Business Association of Michigan, Michigan Restaurant & Lodging Association, Michigan Realtors®, and the Michigan State Medical Society—are warning that the ruling could mean higher costs for consumers, homeowners, patients, and small businesses alike, as regulated industries face overlapping enforcement and rising legal exposure.