To protect consumers from hidden car subscription service fees
Impact
If passed, SB 259 would make it illegal for motor vehicle dealers to charge consumers for features that do not incur additional costs after activation. This change would necessitate that any existing features included during the purchase or lease of a vehicle remain accessible without unexpected fees. The introduction of this legislation reflects a growing concern regarding consumer rights in the automotive industry and aims to foster a fairer marketplace for vehicle transactions.
Summary
Senate Bill 259, presented by Mark C. Montigny, seeks to amend Chapter 90 of the General Laws in Massachusetts to protect consumers from hidden fees associated with car subscription services. The bill specifically targets situations where consumers are charged for subscription services related to motor vehicle features that are supported by components already installed at the point of sale or lease. By establishing clear definitions for 'consumers', 'dealers', and 'subscription services', the legislation aims to provide clarity and transparency in automotive transactions.
Contention
The legislation also outlines penalties for violations, with fines ranging from $10,000 for a first offense to $20,000 for subsequent offenses, which underscores the serious nature of enforcing consumer rights. While the bill appears to have strong support from consumer advocacy groups, concerns may arise from automotive dealers regarding the implications for their business models. The debates surrounding this bill could reflect a broader discussion on transparency and consumer rights, especially as the automotive industry continues to evolve with subscription services.
Order relative to authorizing the joint committee on Consumer Protection and Professional Licensure, to make an investigation and study of certain current Senate documents relative to consumer protection and professional licensure matters