289.4102 Cottage food operation; exemption from licensing and evaluation provisions; requirements; registration program; MSU Product Center.

960 words·~4 min read·/mi/chapter-289/289-4102

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Sec. 4102.

(1)A cottage food operation is exempt from the licensing and evaluation provisions of this act. This exemption does not include an exemption from the adulteration and other standards imposed in this section or under this act, or both, and does not limit the ability of the department to take appropriate enforcement action for applicable violations as described in section 5101. This subsection does not require a cottage food operation to meet the standards contained in 21 CFR part 110 or the food code.

(2)Cottage food products must be prepackaged and properly labeled before sale.

(3)A cottage food operation shall place on the label of any food it produces or packages the following information:

(a)One of the following, as applicable:

(i)The name and address of the business of the cottage food operation.

(ii)The name, telephone number, and registration number issued under subsection

(8)of the business of the cottage food operation.

(b)The name of the cottage food product.

(c)The ingredients of the cottage food product, in descending order of predominance by weight.

(d)The net weight or net volume of the cottage food product.

(e)Allergen labeling as specified by federal labeling requirements.

(f)If any nutritional claim is made, appropriate labeling as specified by federal labeling requirements.

(g)The following statement printed in at least the equivalent of 11-point font size in a color that provides a clear contrast to the background: "Made in a home kitchen that has not been inspected by the Michigan department of agriculture and rural development.".

(4)Except as otherwise provided in this subsection, a cottage food product must be sold directly from the cottage food operation to the consumer. Sales by consignment or at wholesale are prohibited. A cottage food product may be sold by internet or mail order or may be delivered to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold. A cottage food product sold by internet or mail order or delivered through a third-party delivery platform must be sold or delivered only to a consumer in this state. As used in this subsection:

(a)"Directly interact with" includes either a face-to-face meeting or a virtual meeting.

(b)"Virtual meeting" includes, but is not limited to, a meeting in which communication occurs electronically in a manner that permits 2-way communication so that participants can see or be seen and hear or be heard by all parties to the communication.

(5)Except as otherwise provided in this subsection, the gross sales of cottage food products by a cottage food operation must not exceed $50,000.00 annually until October 1,2026. If the cottage food operation sells cottage food products at a price of $250.00 or more per unit, the gross sales of the cottage food products by the cottage food operation must not exceed $75,000.00 annually until October 1, 2026. For the purposes of this subsection, gross sales must be computed on the basis of the amount of gross sales on a per-person basis within or at a particular domestic residence. The department may request in writing documentation to verify the annual gross sales figure. Beginning October 1, 2026, and by each October 1 thereafter, the department may adjust the gross sales amounts set under this subsection by the amount calculated by multiplying the sales limit in effect during the immediately preceding fiscal year by the inflation adjustment factor and rounding to the nearest whole dollar. The inflation adjustment factor used under this subsection is equal to the 3-year average July-June Consumer Price Index for the current fiscal year divided by the 3-year average July-June Consumer Price Index for the immediately preceding fiscal year, as determined by the department of treasury using the Detroit Consumer Price Index. An inflation adjustment factor used under this subsection must not be less than $1.00. As used in this subsection, "Detroit Consumer Price Index" means the most comprehensive index of consumer prices available for the Detroit-Warren-Dearborn area from the Bureau of Labor Statistics of the United States Department of Labor.

(6)Cottage food products must be stored only in the primary domestic residence.

(7)An exemption under this section does not affect the application of any other state or federal laws or any applicable ordinances enacted by any local unit of government.

(8)If the MSU Product Center administers a registration program for cottage food operations, the records of which must be available to the department on request, a cottage food operation may register with the MSU Product Center. The MSU Product Center may do both of the following:

(a)Issue a document that evidences the granting of registration and contains an identifying number unique to a cottage food operation.

(b)Collect a 1-time registration fee of not more than $50.00 to administer the registration program.

(9)A cottage food operation that registers with the MSU Product Center under subsection

(8)shall include on the label described under subsection

(3)the registration number issued to the cottage food operation. A cottage food operation that does not register with the MSU Product Center under subsection

(8)shall include on the label described in subsection

(3)the name and address of the cottage food operation.

(10)Information obtained under subsection

(8)is exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

History: Add. 2010, Act 112 , Imd. Eff. July 12, 2010 ;-- Am. 2012, Act 178 , Eff. Oct. 1, 2012 ;-- Am. 2025, Act 51 , Eff. Mar. 24, 2026