[co-author: Stephanie Kozol]*
Michigan Attorney General (AG) Dana Nessel filed a lawsuit seeking injunctive relief and dissolution of several limited liability companies owned by John and Michele Church. The Churches’ companies have allegedly violated the Michigan Consumer Protection Act (MCPA) by engaging in unlawful business practices related to their residential snow removal, lawn care, and landscaping services.
Specifically, the lawsuit alleges the Churches violated a 2018 Assurance of Voluntary Compliance (AVC) stemming from more than 200 consumer complaints since 2010. The complaints cite issues like failing to provide refunds, misrepresenting services, and including illegal nondisparagement clauses in consumer contracts.
Under the terms of the AVC, the Churches agreed to cease unfair or deceptive business practices, to not create any new same-service entities without notifying the Department of Attorney General (DAG), to pay a $15,000 fine, to compensate any affected customers, and to compensate the DAG for investigative costs. However, as the DAG states in its latest lawsuit, “the Church defendants resumed abusing their customers and violating the MCPA almost immediately.”
The Federal Consumer Review Fairness Act ensures the legal right of consumers to publish and post reviews of goods and services provided by businesses. Amongst other things, the AG’s lawsuit alleges that the Churches’ business required customers to sign nondisparagement clauses that allegedly aimed to prevent negative online reviews, thereby limiting consumers’ rights under federal law, and violating the MCPA.
In addition to seeking an injunction prohibiting the Churches from operating similar entities, the AG is pursuing treble damages for injured consumers, civil fines for willful MCPA violations, recovery of investigative costs, and outright dissolution of several limited liability companies tied to the landscaping operations.
Why It Matters
This case highlights the enforceability of AVCs and the boundaries of consumer contract terms under state consumer protection laws. It also reinforces the protected status of online consumer reviews, which remain crucial for buyer awareness and accountability. We will monitor whether the court grants the impactful injunctive and dissolution remedies pursued by the AG.
*Senior Government Relations Manager
