LANSING, Mich., Aug. 4, 2026 — The Michigan Supreme Court delivered a huge win for Michigan consumers Friday by overturning Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc., ending a three-year-long legal fight led by Michigan Attorney General Dana Nessel to better protect Michiganders from deceptive business practices.
The decision ends a 25-year-long loophole that said if a company held a license or occupational credit from a state or federal agency, they could get away with jacking up prices, and consumers would not have the power to protect themselves. This ruling sides with Michigan’s consumers, ensuring that the Michigan Consumer Protection Act applies to any business that engages in unfair practices or price gouging. In response to the decision, state Rep. Kelly Breen (D-Novi) issued the following statement:
“This decision is a victory for Michigan consumers. For too long, these outdated loopholes have allowed bad actors to exploit Michiganders who are just trying to make ends meet, while creating an unfair marketplace for our family businesses that play by the rules. Smith v. Globe Life turned a narrow exemption into a get-out-of-jail-free card for any business with a license, enabling companies like Eli Lilly to hike insulin prices untouched: the FDA and the Board of Pharmacy oversee the drug, but neither regulates price. Smith v. Globe Life let Eli Lilly hide behind an exemption that had nothing to do with the actual harm.
“When a business engages in unfair business practices, exploits vulnerable people or deceives consumers, they should not be untouchable simply because they are otherwise regulated or hold a professional license. Thank you to Attorney General Dana Nessel and the Consumer Protection Team for continuously fighting for Michigan consumers. During this affordability crisis, we must all continue making every effort to end price gouging and hold predatory corporations accountable.”
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