Michigan Supreme Court paves way to strengthen state consumer protection act
An investigation into insulin prices in Michigan resulted in a state Supreme Court ruling with broader implications for consumer protections.
The case, Attorney General v. Eli Lilly and Company, reverses two prior Michigan Supreme Court decisions that limited the scope of the 1976 Michigan Consumer Protection Act.
Michigan Gov. Gretchen Whitmer called the decision "a landmark victory for Michigan consumers."
Michigan Attorney General Dana Nessel opened an investigation in January 2022 into Eli Lilly, one of the nation's largest drug manufacturers, over the pricing of insulin. Insulin is commonly prescribed for people who have various forms of diabetes, as it helps with blood sugar regulation in cases where the body is not producing or using insulin effectively.
The American Diabetes Association estimates just under 12% of Michigan's population has diabetes, which works out to 1.08 million people.
The attorney general's office said that while the Food and Drug Administration allows the sale of insulin medications, the FDA does not have regulations governing prices. The Ingham County Circuit Court authorized the attorney general's office to issue subpoenas over the pricing of Eli Lilly's insulin products, and that sparked the litigation.
The legal arguments in court focused on the interpretation of the consumer protection law, given two prior opinions that limited its scope. The Eli Lilly case had been at the state's highest court since August 2023. The decision was filed on July 31.
"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," Nessel said.
In the meantime, Sen. Sam Singh, D-Lansing, sponsored legislation that he said is aimed at strengthening the consumer protection law. Senate Bill 134 passed the Senate and is sitting in a House committee.
"This is a major win for our state and our people," Singh said about the Supreme Court decision. I urge the Michigan House of Representatives to pass my legislation and permanently restore Michigan's Consumer Protection Act and protect our people."
