Michigan sets new rules for motor vehicle repair estimates and customer consent

Michigan Senate Bill 25, introduced on January 23, 2025, aims to enhance consumer protection in the automotive repair industry by establishing clearer guidelines for pricing and estimates. The bill mandates that motor vehicle repair facilities provide customers with a detailed written estimate before commencing any repair work. This estimate must itemize the expected costs for both labor and parts, ensuring transparency in pricing.

Key provisions of the bill include a requirement that facilities cannot charge customers beyond the estimated price without obtaining explicit consent after informing them of any additional costs. However, if the final charges exceed the estimate by no more than 10% or $50, the facility is not obligated to seek prior approval unless specifically requested by the customer. This provision seeks to balance consumer protection with operational flexibility for repair shops.

The bill has sparked discussions among stakeholders, with proponents arguing that it will protect consumers from unexpected charges and promote fair business practices. Critics, however, express concerns that the requirements could impose additional burdens on small repair shops, potentially leading to increased costs for consumers in the long run.

The implications of Senate Bill 25 extend beyond consumer protection; it could reshape the dynamics of the automotive repair industry in Michigan. Experts suggest that clearer pricing structures may lead to increased consumer trust and potentially foster competition among repair facilities. However, the bill's impact on small businesses remains a point of contention, with some fearing that compliance costs could outweigh the benefits.

As the legislative process unfolds, the bill will likely undergo further scrutiny and potential amendments. Stakeholders are closely monitoring its progress, as its final form could significantly influence the automotive repair landscape in Michigan.