At the Ecommerce Innovation Alliance (EIA), our mission is to ensure that the voices of small and medium-sized ecommerce businesses are heard where it matters most. For months, we have been on the ground in Lansing, meeting with legislators and sounding the alarm regarding Michigan Senate Bill 351.
Despite this effort, yesterday, the Michigan Senate passed SB 351 with unanimous, bipartisan support. While the bill is framed as a crackdown on deceptive robocalls and phone scams—a goal we all share—the reality of the legislation remains deeply problematic for legitimate ecommerce businesses.
Despite a concentrated effort by some lawmakers to remove the “private right of action” (PRA) from the bill, that amendment was defeated. The bill now heads to the Michigan House of Representatives for committee assignment.
Why EIA Remains Concerned
EIA has been proactive in this fight. Our leadership has engaged directly with Michigan legislators on multiple occasions to explain the nuances of ecommerce communication and the unintended consequences of this bill and our advocacy did produce some changes to the draft bill before it was adopted
However, we remain concerned about the current legislation. Our opposition to SB 351 is not about protecting scammers; it is about protecting the honest ecommerce entrepreneurs who power our economy. As we have detailed in our previous analysis, “A Flawed Blueprint,” this bill is essentially a “mini-TCPA” (Telephone Consumer Protection Act) that has proven ineffective at actually addressing scam calls and texts. By maintaining the private right of action, SB 351 opens the door for predatory, high-volume litigation against small businesses. Under this provision, a single technical oversight in a marketing text or call could result in a lawsuit that could bankrupt a small brand. Large corporations have the legal departments to weather these storms; the independent ecommerce owners we represent do not.
We previously issued a Legislative Alert when the bill first advanced, noting that lawmakers were ignoring industry warnings about how these regulations overlap—and often conflict—with existing federal protections.
The Political Double Standard
One of the most glaring issues with this legislative package—and a point EIA leadership has repeatedly raised in hearing comments across several states—is the blatant exemption for political messages.
While SB 351 replaces 1980s-era rules with a framework that allows private citizens to file lawsuits for damages and imposes civil fines as high as $75,000, it creates a specific “carve-out” for political calls.
During the floor debate, Senator Ed McBroom (R-Waucedah Twp.) offered an amendment to remove these exemptions for legislators and candidates. He correctly pointed out the hypocrisy of the move, asking, “When you’re campaigning, why do you want to spend your money on these things that nobody wants?” Unfortunately, that amendment failed.
Business owners are now left in a position where they face predatory litigation for legitimate business communications, while the very legislators passing these laws ensure their own political messages—which are among the largest sources of spam complaints received by the FCC—remain protected from the same regulations.
What Happens Next?
The battle now moves to the Michigan House. This transition provides a critical window for us to educate House members on the difference between “bad actors” and legitimate ecommerce businesses trying to reach their customers.
The unanimous vote in the Senate shows how easily complex regulatory issues can be simplified into “pro-consumer” soundbites that ignore the economic reality for small businesses. We will continue to advocate for a version of this bill that targets actual scammers without putting a target on the backs of Michigan’s digital innovators.
EIA remains committed to a fair digital marketplace. We will continue to stand as your shield against overreaching regulations that threaten the growth of the ecommerce community.
Join the EIA today to help strengthen and shape policies that affect all ecommerce businesses. Together, we can continue to create the future of ecommerce. Subscribe to EIA email updates to stay informed on key developments and their impact on your business.
