Massachusetts Senate Bill S202

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Relative to consumer protection on online automobile franchise transactions

Impact

If enacted, S202 could significantly alter the landscape of automobile transactions in Massachusetts. By explicitly addressing online sales and the applicability of consumer protection laws, the bill may facilitate a smoother process for both buyers and sellers in the automotive market. This adjustment to consumer protection laws is likely to encourage more dealerships to adopt electronic sales practices, as they will have clearer guidelines to follow. Moreover, it may impact consumer behavior by making buyers more aware of their rights and protections when engaging in online vehicle purchases.

Summary

Senate Bill S202 proposes amendments to the consumer protection laws regarding online automobile franchise transactions in the Commonwealth of Massachusetts. The bill aims to clarify the legal framework under which online sales of new and used motor vehicles can take place, specifically when buyers sign contracts electronically away from the seller's physical premises. The legislation seeks to enhance consumer trust and protection by mandating that sellers inform buyers that certain state protections do not apply in these electronic transactions, thereby ensuring transparency in the purchasing process.

Contention

While the bill appears to streamline and modernize the process of automobile sales, concerns may arise regarding the effectiveness of consumer protections in online settings. Critics might argue that the requirement for sellers to inform buyers that certain protections do not apply could lead to confusion or potential exploitation of uninformed consumers. There is a possibility that the bill could face scrutiny over whether it adequately safeguards the interests of buyers, who may be less familiar with the nuances of online contract law, especially in complex transaction scenarios.