Michigan SB 351: What the New Telephone Solicitation Act Means for Businesses

As part of an effort to update the state’s telemarketing rules and strengthen consumer protections against unwanted calls and texts, the Michigan Senate has passed Senate Bill 351 (S-4). The bill is now being heard in the Michigan House. If enacted, the bill would create a modern Telephone Solicitation Act (“TSA”), replacing older provisions of Michigan’s telemarketing rules.

The bill applies to both voice and text communications and broadly defines “telephone solicitation” to include calls and texts made for marketing, gathering personal information, employment offers, prize promotions, or other similar purposes. It also covers automated dialing technologies and prerecorded messages.

Key Changes Under SB 351

If the bill is enacted, these are some of the key changes that would go into effect.

Prohibits “Recorded” Messages

Telephone solicitations using recorded messages are prohibited unless the recipient has provided “express verifiable authorization” (EVA). EVA requires:

• A signature (including electronic or digital) from the recipient;
• Clear authorization for calls or texts using autodialers, recorded messages, or prerecorded voicemails; and
• Disclosure that the recipient is not required to sign or agree as a condition of purchasing goods or services.

This standard closely mirrors the federal “express written consent” under the Telephone Consumer Protection Act (“TCPA”).

Prohibits Calls to Numbers on the National DNC Registry

Solicitations may not be made to numbers on the National Do Not Call Registry, unless the call falls under an exception, such as EVA, an existing customer relationship, or charitable organization outreach.

The bill explicitly prohibits using DNC-listed numbers for lead generation activities, including compiling, selling, or sharing lists of numbers intended for solicitation.

Required Disclosures

Telephone solicitors and text senders must provide:

• For texts, the organization on whose behalf the message is sent.
• For calls, the telephone solicitor’s true first and last name, and the full name, address, and phone number of the organization that is making the call.

Businesses must ensure that an individual is available to answer the telephone number provided in the disclosure at any time during traditional business hours of 9 am to 5 pm local time of the called party’s residence.

Caller ID and Number Use Rules

The Act prohibits:

• Blocking or falsifying caller ID information;
• Rotating or changing numbers to hide the caller’s identity; and
• Using a third party or dialing system to display fictitious or misleading names or telephone numbers.

Autodialing (ADAD) Restrictions for Vulnerable Numbers

The Act defines an automatic dialing and announcing device (“ADAD”) as “any device or system of devices that is used, whether alone or in conjunction with other equipment, for the purpose of automatically selecting or dialing telephone numbers.” 

Compared to the TCPA’s definition, Michigan’s ADAD definition does not require the use of random or sequential number generation logic. As a result, equipment commonly used in modern outbound dialing campaigns could fall within the scope of the Act. However, calls made with EVA or to existing customers are exempt from the ADAD prohibition, meaning properly documented consent remains a key compliance aspect.

Under the Act, it is prohibited to use an ADAD to make telephone solicitations to:

• Vulnerable telephone numbers; and
• Numbers on the National DNC Registry.

The Act defines “vulnerable telephone numbers” as:

• Emergency telephone numbers;
• Telephone numbers of hospitals, medical physicians or service offices, health care facilities, or health care providers;
• Telephone numbers of government entities;
• Telephone numbers of schools or educational facilities; and
• Telephone numbers of “vulnerable individuals,” or a person who is 75 years or older or is a person with a disability as defined by Michigan’s Civil Rights Act (1976 PA 220, MCL 37.1103).

Contract and Misrepresentation Rules

Contracts resulting from telephone solicitations must include (but are not limited to):

• A 7-day cancellation notice; and
• A bold and conspicuous type of statement: “You are not obligated to pay any money unless you sign this contract and return it to the seller.”

The bill also prohibits misrepresentation of costs, identity, material terms, refund policies, or the nature of goods and services.

Allowable Contact Times

Telephone solicitations may only be sent between 8 a.m. and 9 p.m. local time at the subscriber’s residence, unless the subscriber has provided EVA to be contacted outside of those hours.

Exemptions Under the Act

While the TSA significantly expands restrictions on outbound calls and texts, it also includes important exemptions.

Most notably, communications made with EVA are exempt from many of the Act’s prohibitions. Where a subscriber has provided compliant written authorization, including consent to receive calls or texts using autodialers or prerecorded messages, certain restrictions, such as the recorded message ban, ADAD limitations, and time-of-day limits, do not apply.

Additional exemptions include:

• Communications to existing customers, unless the customer has previously requested not to receive further communications;
• Communications made in compliance with federal or state debt collection laws;
• Calls to business telephone numbers, unless the business has opted out of receiving such communications;
• Religious, political, public policy, or educational communications, provided they do not involve sales or marketing efforts; and
• Bona fide survey or opinion research calls, including message testing, so long as they do not include sales, marketing, or behavior-influencing objectives.

Penalties & Integration with Federal Law

The bill references the TCPA (47 USC 227) and the TSR (16 CFR Part 310), meaning violations of these laws are automatically considered violations of Michigan law, allowing for both federal and state enforcement.

The Michigan Attorney General may seek civil fines of up to $25,000 per violation, giving the state a powerful tool to enforce compliance. Additional civil fines may be sought of up to $50,000 for violations that targeted vulnerable individuals as defined by the Act, and up to $75,000-$100,000 for persistent or knowing violations or for persistent or knowing violations as they relate to vulnerable telephone numbers.

Private Right of Action

In addition to enforcement by the Michigan Attorney General, the Act provides for a private right of action.

This means individuals who receive unlawful telephone solicitations may bring a civil lawsuit to recover statutory damages or actual damages, as permitted under the statute. As mentioned above, because the Act also incorporates violations of the federal TCPA and TSR as violations of Michigan law, businesses could face simultaneous federal and state exposure for the same conduct making this a heightened litigation and enforcement environment.

Looking Ahead

If Senate Bill 351 (S-4) and its companion legislation are signed into law, Michigan will implement a substantially revised Telephone Solicitation Act that reshapes the state’s telemarketing framework. Because the bills are tie-barred, the new law would only take effect once the full legislative package (SB 351–355) is enacted and signed by the governor, with the effective date established at that time.

Businesses that rely on outbound calling or texting should evaluate how the proposed law would impact their consent practices, lead sourcing, dialing technology, disclosures, and recordkeeping. Proactive review of consent documentation and compliance controls will be critical given the expanded enforcement authority and private right of action provided under the Act. For questions about the bill or how your business may be impacted, please contact connect@compliancepoint.com.