Arkansas 2023 Regular Session

Arkansas House Bill HB1751 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	ANS139 3/28/2023 1:53:37 PM ANS139
3	3
4	4	State of Arkansas 1
5	5	94th General Assembly A Bill 2
6	6	Regular Session, 2023 HOUSE BILL 1751 3
7	7	4
8	8	By: Representative M. Brown 5
9	9	By: Senator M. Johnson 6
10	10	7
11	11	For An Act To Be Entitled 8
12	12	AN ACT CONCERNING DE CEPTIVE TRADE PRACTI CES; TO 9
13	13	CREATE THE ARKANSAS AUTOMOTIVE SUBSCRIPT IONS CONSUMER 10
14	14	PROTECTION ACT; AND FOR OTHER PURPOSES. 11
15	15	12
16	16	13
17	17	Subtitle 14
18	18	CONCERNING DECEPTIVE TRADE PRACTICES; AND 15
19	19	TO CREATE THE ARKANSAS AUTOMOTIVE 16
20	20	SUBSCRIPTIONS CONSUMER PROTECTION ACT. 17
21	21	18
22	22	19
23	23	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
24	24	21
25	25	SECTION 1. DO NOT CODIFY. Legislative findings and intent. 22
26	26	(a) The General Assembly finds that: 23
27	27	(1) Certain motor vehicle manufacturers have indicated their 24
28	28	intent to begin charging consumers a subscription or other ongoing fee in 25
29	29	order for consumers to be able to use certain motor vehicle features that are 26
30	30	paid for by the consumers at the time of purchase but which do not require 27
31	31	any ongoing expense to or maintenance by the motor vehicle manufacturer in 28
32	32	order to function after purchase, including without limitation heated seats, 29
33	33	fob-based key remote start systems, and other similar features, and to 30
34	34	disable such features unless the subscrip tions or other fees are paid; and 31
35	35	(2) The motivation for charging consumers fees is to extract the 32
36	36	maximum profit from consumers while providing no additional value or service 33
37	37	to such consumer. 34
38	38	(b) It is the intent of this act to establish that the ac tions of 35
39	39	certain motor vehicle manufacturers that threaten to disable these motor 36 HB1751
40	40
41	41	2 3/28/2023 1:53:37 PM ANS139
42	42
43	43
44	44	vehicle features on motor vehicles of Arkansas consumers constitutes an 1
45	45	unfair trade practice. 2
46	46	3
47	47	SECTION 2. Arkansas Code Title 4, Chapter 88, is amended to add an 4
48	48	additional subchapter to read as follows: 5
49	49	Subchapter 11 — Arkansas Automotive Subscriptions Consumer Protection Act 6
50	50	7
51	51	4-88-1101. Title. 8
52	52	This subchapter shall be known and may be cited as the "Arkansas 9
53	53	Automotive Subscriptions Consumer Protection Act". 10
54	54	11
55	55	4-88-1102. Definitions. 12
56	56	As used in this subchapter: 13
57	57	(1) "Manufacturer" means a person or business engaged in the 14
58	58	manufacturing or assembling of a new motor vehicle; 15
59	59	(2) "Motor vehicle" means the same as defined in § 27 -14-104; 16
60	60	(3) "Motor vehicle feature" means any convenience or safety 17
61	61	function, feature, or accessory included on a motor vehicle at the time of 18
62	62	purchase, including without limitation heated seats and fob -based key remote 19
63	63	start systems; and 20
64	64	(4) "Subscription" means a recurring payment, incl uding without 21
65	65	limitation a weekly, monthly, or annual payment charged to and made by a 22
66	66	consumer. 23
67	67	24
68	68	4-88-1103. Certain subscriptions unlawful. 25
69	69	(a) A motor vehicle manufacturer shall not charge, whether directly, 26
70	70	through a related or subsidiary entity, or through a third-party service 27
71	71	provider, any consumer a subscription as a condition of being able to use any 28
72	72	motor vehicle feature that: 29
73	73	(1) Utilizes components and hardware already installed on the 30
74	74	motor vehicle and paid for by the consumer at the time of purchase; and 31
75	75	(2) Would continue to function after the time of purchase 32
76	76	without any ongoing expense to the manufacturer or any third -party service 33
77	77	provider. 34
78	78	(b) This subchapter shall not be construed to prohibit a motor vehicle 35
79	79	manufacturer from charging a subscription for a motor vehicle feature that 36 HB1751
80	80
81	81	3 3/28/2023 1:53:37 PM ANS139
82	82
83	83
84	84	requires an ongoing expense to the motor vehicle manufacturer or a third -1
85	85	party service provider in order to continue to function after purchase, 2
86	86	including without limitation satellite radios, internet services, and 3
87	87	roadside assistance services. 4
88	88	5
89	89	4-88-1104. Penalties — Enforcement. 6
90	90	(a)(1) A violation of this subchapter shall constitute an unfair and 7
91	91	deceptive act or practice under § 4 -88-107. 8
92	92	(2) All remedies, penalties, and authority granted to the 9
93	93	Attorney General under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 10
94	94	or this subchapter shall be available to the Attorney General for the 11
95	95	enforcement of this subchapter. 12
96	96	(b) A prosecuting attorney of any of the districts and counties of 13
97	97	this state shall have the authority to enforce this subchapter. 14
98	98	(c) This subchapter shall not prohibit an individual harmed by the 15
99	99	deceptive trade practice from bringing a civil action against a motor vehicle 16
100	100	manufacturer for violating this subchapter. 17
101	101	18
102	102	4-88-1105. Civil action. 19
103	103	(a) A civil action may be filed by an individual who is charged a 20
104	104	subscription in violation of this subchapter. 21
105	105	(b) In a civil action under subsection (a) of this section, an 22
106	106	individual who is charged a subscription in violation of this subchapter may 23
107	107	elect to recover from the entity charging the subscription: 24
108	108	(1) The actual financial loss proximately caused by the offense 25
109	109	or violation, including the amount of all subscriptions charged to the person 26
110	110	in violation of this subchapter and paid by the person; or 27
111	111	(2) A penalty of one thousand dollars ($1,000) per violation. 28
112	112	(c) A prevailing party in any action brought under subdivision (a) of 29
113	113	this section shall be awarded costs and reasonable attorney's fees. 30
114	114	(d) An action brought under this subchapter shall not be subject to 31
115	115	the prohibition against class action lawsuits contained in § 4 -88-113. 32
116	116	33
117	117	34
118	118	35
119	119	36