Michigan Attorney General Dana Nessel has filed a lawsuit against the owners of the two Mackinac Island ferry companies, alleging the monopolized the market for transportation to the island.
The lawsuit was filed against the Hoffman Family of Companies and its affiliated entities, which has stake in both Shepler's Ferry and the Mackinac Island Ferry Company.
In a 2024 release announcing the acquisition of the Mackinac Island Ferry Company, Hoffman said it also includes docks in Mackinaw City, St. Ignace and Mackinac Island, plus parcels of land, buildings and parking spaces.
"This makes the company the largest owner of real estate parcels in the area and employer to 500 people in the Mackinac area," the release said.
Nessel argues that Hoffman unlawfully monopolized the markets, and that the lawsuit aims to restore competition.
"By these acquisitions, Hoffmann acquired unlawful monopoly power in both the ferry service and long-term parking markets essential to nearly all travel to Mackinac Island, and has used this monopoly power to raise ferry fares above competitive price levels, impose new fees, eliminate discounts and passes relied on by Island residents and workers, begun charging for parking that was previously offered at no cost, and eliminated consumer choice," the AG's office said in a release.
“This was never only an Island issue. More than 1.5 million people travel to Mackinac Island each year, and many of them are Michigan families. Over 80% of the Island is designated as Mackinac Island State Historic Parks, which belongs to the people of Michigan. The State has stepped forward on their behalf, and we are grateful," Mackinac Island Mayor Margaret Doud said in a statement released by the AG's office.
“We appreciate Attorney General Dana Nessel also taking these concerns seriously and using the powers of her office in support of Michigan consumers and Mackinac Island," John Sellek, a spokesperson for the Fair Access to Mackinac Island Coalition, said.
The lawsuit is asking a judge to reopen the markets to competition and make Hoffman divest in the ferry services to "ensure fair market conditions for residents, businesses, and visitors."
