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HOUSE DOCKET, NO. 809 FILED ON: 1/13/2025
HOUSE . . . . . . . . . . . . . . . No. 1293
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Angelo J. Puppolo, Jr.
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to preserving consumer choice in the purchase of motor vehicle service
contracts.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Angelo J. Puppolo, Jr.12th Hampden1/13/2025 1 of 5
HOUSE DOCKET, NO. 809 FILED ON: 1/13/2025
HOUSE . . . . . . . . . . . . . . . No. 1293
By Representative Puppolo of Springfield, a petition (accompanied by bill, House, No. 1293) of
Angelo J. Puppolo, Jr. relative to motor vehicle service contracts. Financial Services.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act relative to preserving consumer choice in the purchase of motor vehicle service
contracts.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 149M of chapter 175 of the General Laws, is hereby amended by
2inserting after the definition of “consumer” the following 5 definitions:-
3 “Consumer product”, any tangible personal property that is distributed in commerce and
4is normally used for personal, family or household purposes, including tangible personal
5property intended to be attached to or installed in any real property without regard to whether it
6is so attached or installed.
7 “Maintenance agreement”, a contract for regular maintenance.
8 “Motor vehicle distributor”, any person who is not a motor vehicle manufacturer or a
9motor vehicle dealer and who sells or distributes new and unused motor vehicles to motor
10vehicle dealers within the commonwealth or to a wholesaler who in turn sells or distributes such
11vehicles to motor vehicle dealers within the commonwealth; provided, however, that “motor
12vehicle distributor” shall include any branch office or division maintained by any corporation, 2 of 5
13association, partnership or other legal entity for directing and supervising their franchisor
14representatives.
15 “Motor vehicle franchisor representative”, a person employed by a motor vehicle
16manufacturer or distributor to promote the sale of new motor vehicles or for supervising,
17servicing, instructing or contracting motor vehicle dealers or prospective motor vehicle dealers
18and any officer, agent or other authorized representative of a manufacturer or distributor.
19 “Motor vehicle manufacturer”, a person who: (i) manufactures or produces motor
20vehicles under the person’s own name or label; (ii) is a subsidiary of the person who
21manufactures or produces motor vehicles; (iii) is a corporation which owns 100 per cent of the
22corporation, association, partnership or other legal entity who manufactures or produces motor
23vehicles; or (iv) does not manufacture or produce motor vehicles but, pursuant to a written
24contract, licenses the use of its trade name or label to another person who manufactures or
25produces motor vehicles.
26 SECTION 2. Said section 149M of said chapter 175, as so appearing, is hereby further
27amended by striking out the definition of “service contract” and inserting in place thereof the
28following definition:-
29 “Service contract”, a contract for a separately stated consideration and for a specific
30duration to perform the service, repair, replacement or maintenance of a consumer product,
31including a motor vehicle, or indemnification for service, repair, replacement or maintenance for
32the operational or structural failure due to a defect in materials or workmanship or normal wear
33and tear, with or without additional provision for incidental payment or indemnity under limited
34circumstances, for related expenses, including, but not limited to, rental and food spoilage; 3 of 5
35provided, however, that a service contract shall also include a contract or agreement sold for a
36separately stated consideration for a specific duration that provides for any of the following: (i)
37the repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming
38into contact with road hazards including, but not limited to, potholes, rocks, wood debris, metal
39parts, glass, plastic, curbs or composite scraps; (ii) the removal of dents, dings or creases on a
40motor vehicle that can be repaired using the process of paintless dent removal without affecting
41the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting;
42(iii) the repair of small motor vehicle windshield chips or cracks which may include the
43replacement of the windshield for chips or cracks that cannot be repaired; or (iv) the repair of
44damage to the interior components of a motor vehicle caused by wear and tear but which shall
45expressly exclude the replacement of any part or component of a motor vehicle’s interior.
46 SECTION 3. Section 149N of said chapter 175, as so appearing, is hereby amended by
47striking out, in line 100, the words “tangible personal property” and inserting in place thereof the
48following words:- consumer products.
49 SECTION 4. Section 149U of said chapter 175, as so appearing, is hereby amended by
50adding the following subsection:-
51 (c) It shall be an unfair or deceptive act or practice for a motor vehicle manufacturer,
52distributor or franchisor representative to require, attempt to require, coerce or attempt to coerce
53a motor vehicle dealer to sell, offer to sell or sell exclusively an extended service contract,
54extended maintenance plan or similar products, including, but not limited to, guaranteed
55automobile protection or guaranteed asset protection products, offered, endorsed or sponsored by
56the motor vehicle manufacturer, distributor or franchisor representative by any of the following 4 of 5
57means: (i) a statement made by the motor vehicle manufacturer, distributor or franchisor
58representative that failure to sell, offer to sell or sell exclusively an extended service contract,
59extended maintenance plan or similar products will substantially and adversely impact the dealer;
60(ii) a provision in a franchise agreement that the dealer sell or sell exclusively an extended
61service contract, extended maintenance plan or similar product offered, endorsed or sponsored by
62the motor vehicle manufacturer, distributor or franchisor representative; (iii) measuring the
63dealer’s performance under the franchise based on the sale of extended service contracts,
64extended maintenance plans or similar products offered, endorsed or sponsored by the motor
65vehicle manufacturer, distributor or franchisor representative; or (iv) requiring the dealer to
66exclusively promote the sale of extended service contracts, extended maintenance plans or
67similar products offered, endorsed or sponsored by the motor vehicle manufacturer, distributor or
68franchisor representative.
69 Nothing in this subsection shall prohibit a motor vehicle manufacturer, distributor or
70franchisor representative from providing incentives to a dealer that encourages a voluntary
71decision to sell or sell exclusively an extended service contract, extended maintenance plan or
72similar product, including, but not limited to, guaranteed automobile protection or guaranteed
73asset protection products offered, endorsed or sponsored by the manufacturer, distributor or
74franchisor.
75 SECTION 5. Said chapter 175 is hereby amended by striking out section 149V, as so
76appearing, and inserting in place thereof the following section:-
77 Section 149V. (a) The following shall be exempt from sections 149M to 149W, inclusive:
78(i) warranties, service contracts or maintenance agreements provided by public utilities that are 5 of 5
79regulated by the department of telecommunications and cable or the Federal Communications
80Commission, or by an affiliate of such entity, covering customer wiring, transmission devices
81serviced by such public utility or warranting services provided by such public utility or its
82affiliate; (ii) mechanical breakdown insurance policies offered by insurers otherwise licensed and
83regulated pursuant to the laws and regulations of the commonwealth; (iii) warranties, service
84contracts or other agreements regarding automobiles under which a licensed motor vehicle dealer
85is obligated to perform; (iv) warranties offered by builders as part of a conveyance of real estate;
86(v) warranties on a product made by the manufacturer, importer or seller of the product; and (vi)
87maintenance agreements.
88 (b) Motor vehicle manufacturer’s service contracts on the motor vehicle manufacturer’s
89products shall comply with sections 149M to 149W, inclusive, as applicable to be determined by
90the commissioner of insurance; provided, however, that motor vehicle manufacturer’s service
91contracts on the motor vehicle manufacturer’s products shall be exempt from licensure
92requirements under subsection (d) of section 149N.