Bill Schuette failed consumers as Michigan Attorney General

No one plays a more important role protecting consumers than the state attorney general. Under Bill Schuette, however, Michigan has one of the weakest consumer protection programs in the nation. This failure is a betrayal of Michigan’s legacy, forged under consumer champion and former attorney general Frank Kelley. More important, it’s a betrayal of victims. Reform must start now.

A forthcoming, multi-author study in the Harvard Journal of Legislation documents this failure. The study examined public enforcement of state consumer protection acts ‒ the most important weapon attorneys general wield to protect consumers from unfair and deceptive dealings. Using extensive freedom-of-information-act requests submitted to every attorney general in the nation, the study gathered all actions resolved in 2014.  The result is a first-ever snapshot that allows comparisons among states.

Mark Totten is on the faculty at the Michigan State University College of Law. He was the Democratic nominee for Michigan Attorney General in 2014. In 2016, he received the Frank J. Kelley Consumer Advocacy Award from the Consumer Law Section of the State Bar of Michigan.

Considering volume of cases, relief obtained for consumers, and leadership in large multistate lawsuits, Michigan landed in the bottom one-third. This result is shocking given Michigan is one of the 10 most populous states. Iowa and Vermont, both small states, far out-performed Michigan. And Republican-led states like Texas and Florida had strong enforcement programs that made Michigan’s weakness even more glaring.

Was 2014 an outlier? Unlikely, at least according to the attorney general’s press releases.

Since taking office in 2011, Schuette has announced about 40 civil cases dealing with consumer protection. Of these, about 30 were large multistate cases, the vast majority of which other states led and Michigan collected a check. The widely publicized $18.5 million settlement with Target Corporation this past May over a 2013 data breach, for example, followed an investigation led by the attorneys general of Connecticut and Illinois. Moreover, settlements Schuette announced in 2014 for $105 million against AT&T and $90 million against T-Mobile for placing unauthorized charges on consumers’ accounts (“cramming”) were also led by others.

Maybe Schuette has concealed his big wins?  Doubtful. Attorneys general tend to chest-thump and Schuette is no exception.

Enforcement always requires choosing priorities. It seems, for example, that Schuette has targeted charitable solicitation fraud, for which his office was recently recognized. That work is important. Under no metric, however, is Michigan’s current effort at consumer protection acceptable.

Michigan’s next attorney general will have to prioritize consumer protection, especially given the impending demise of federal enforcement under President Trump. In the meantime, three reforms would bring badly needed accountability to this office.

First, the legislature must demand disclosure of all money spent to elect the attorney general. Full disclosure is imperative for any officeholder, but especially attorneys general who bear the high ethical responsibility of conducting investigations and enforcing the law. Schuette’s willingness to accept dark money is no secret. As a result, voters have no means to determine whether Schuette is accepting checks from the very individuals and businesses he should target for investigation.

Second, the legislature should require full accounting of how the attorney general resolves consumer complaints. At present, it’s a black hole. Schuette annually reports the number and type of complaints, and an overall dollar figure in consumer recoveries, but that information says little about whether he properly handles complaints. He may have done nothing to help most victims who contact his office. The attorney general must be transparent, while protecting consumers’ personal information.

Third, the media must ask tough questions. Many of the most impressive-sounding cases, with eye-popping payouts, are large multistate lawsuits where Schuette did almost nothing. Report these cases, but also report his role. We don’t hold award banquets for parents who feed their children, and neither should we give the attorney general substantial credit for scribbling his name on a settlement.

Victims of consumer fraud and unfair dealings deserve an advocate in the Michigan Attorney General— the “People’s Lawyer.” These measures are first steps toward long-term reform.

Bridge welcomes guest columns from a diverse range of people on issues relating to Michigan and its future. The views and assertions of these writers do not necessarily reflect those of Bridge or The Center for Michigan.

Comment Form

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

Comments

TJH
Tue, 01/09/2018 - 9:54am

Mr. Schuette's career has been more based upon slick political messaging and posturing than substance since he ran for the House vs Bob Traxler. He ran by telling the voters that he would get the seat on the Ag Committee that Traxler had once held, and he criticized Traxler (a farmer) for no longer holding a seat on that committee. He is a skillful politician who has cultivat d the right kind of powerful and monied backers. That he has done little to serve the citizens interests as Attorney General should be no surprise to anyone who peels back the facade he has erected to conceal his true ambitions. Sadly he could be our next governor, but he will be no more a champion of average Michiganders than Trump is for America.

Larry Peplin
Tue, 01/09/2018 - 11:19am

Bill Schuette has clearly been the most self-serving Michigan AG to ever have served. Unfortunately, there's no one willing or able to confront him in Lansing, except for us, the voters. His appointment of numerous Repub cronies to well-paying jobs in his department, without apologies, reeks of the rot in his office. He must NOT become our governor.

Rick
Tue, 01/09/2018 - 12:19pm

Schuette probably has been the worst Michigan AG in modern times. It's always been his political ambitions with no consideration of the citizens of Michigan. The way he chose to litigate certain things and not others made that quite clear: challenging Obamacare was a priority, but criminal mismanagement of the Flint water crisis and the utter robbery of the Unemployment Fund system were essentially ignored (go for some low level people and make them guilty was all he did).

He's now larded up his department with campaign people and turned the AG office into a political campaign. Has anyone noticed?

He has a large campaign fund and the DeVos (this publication is funded by Amway...) and the Koch Brothers will bury his opponents with campaign lies. Let's hope the people of Michigan can see through those lies.

Matt
Tue, 01/09/2018 - 1:15pm

Wow now Bridge is allowing itself to used as a campaign tool for the Democratic candidate for AG? Granted Schuette's a singularly uninteresting un-compelling candidate, but this is a nothing article, that some leftwing Harvard profs surprisingly don't like Republican Schuette's priorities. This isn't even interesting commentary. Really can't find anything to fill space?

Rich
Tue, 01/09/2018 - 4:35pm

Schuette should stop worrying about who is sleeping with who and stop interfering with doctor - patient relationships. That said, we have a very sorry batch of candidates running for governor, both democrat and republican.

Kevin Shopshire
Wed, 01/10/2018 - 8:45am

There has been no consumer protection arm at the AG’s office for some 15 years, and since then it is little more than a launching pad for higher political office.

Clark
Wed, 01/10/2018 - 3:23pm

What a partisan article. Is 'Bridge' backing this democrat for next AG?