EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0274*
HOUSE BILL 274
R4 2lr0405
HB 659/21 – ECM CF 2lr0409
By: Delegates Qi, Henson, and Ruth
Introduced and read first time: January 17, 2022
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Vehicle Laws – Manufacturers and Dealers – Prices Listed on Dealer Website 2
FOR the purpose of providing that a manufacturer, distributor, or factory branch may not 3
prohibit a dealer from listing on the dealer’s website a vehicle for sale or lease at the 4
purchase price, coerce or require a dealer to list a price on the dealer’s website that 5
is different from the purchase price, or take an adverse action against a dealer for 6
listing a particular price on the dealer’s website; and generally relating to 7
advertising for the sale or lease of vehicles. 8
BY repealing and reenacting, with amendments, 9
Article – Transportation 10
Section 15–207(a) and (h) 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2021 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – Transportation 15
Section 15–313(a) and (b) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2021 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Transportation 21
15–207. 22
(a) (1) In this section the following words have the meanings indicated. 23
(2) (i) “Coerce” means to compel or attempt to compel by threat of harm, 24 2 HOUSE BILL 274
breach of contract, or other adverse action or consequences, including the loss of any 1
incentive or other benefit made available to other dealers of the same line make in the 2
State. 3
(ii) “Coerce” includes to act in a manner that violates § 15–206.1 of 4
this subtitle. 5
(iii) “Coerce” does not include to argue, urge, recommend, or 6
persuade. 7
(3) “PURCHASE PRICE ” MEANS THE FULL DELIV ERED PRICE OF A 8
VEHICLE, EXCLUDING ONLY TAXES , TITLE FEES, AND ANY FREIGHT OR D EALER 9
PROCESSING CHARGE DI SCLOSED IN ACCORDANC E WITH § 15–311.1 OF THIS TITLE. 10
(4) “Require” means to impose upon a dealer a provision not required by 11
law or previously agreed to by a dealer in a franchise agreement, excluding business 12
decisions made to comply with the requirements of this title by a manufacturer, distributor, 13
or factory branch which are uniformly applied to all Maryland dealers in new vehicles of 14
the manufacturer, distributor, or factory branch. 15
(h) (1) (i) Any consumer rebates, dealer incentives, price or interest rate 16
reductions, or finance terms that a manufacturer, distributor, or factory branch offers or 17
advertises, or allows its dealers to offer or advertise, shall be offered to all dealers of the 18
same line make. 19
(ii) Any manufacturer, distributor, or factory branch that denies the 20
benefit of any consumer rebates, dealer incentives, price or interest rate reductions, or 21
finance terms to a dealer on the basis that the dealer failed to comply with performance 22
standards has the burden of proving that the performance standards comply with the 23
provisions of this section. 24
(2) Unless a dealer violates a State or local law intended to protect the 25
public, a manufacturer, distributor, or factory branch may not: 26
(i) Require a dealer to alter or replace an existing dealership 27
facility; or 28
(ii) Deny, or threaten to deny, any benefit generally available to all 29
dealers for a dealer’s failure to alter or replace an existing dealership facility. 30
(3) UNLESS A DEALER VIOLA TES § 15–313(A) OR (B) OF THIS TITLE 31
OR A STATE OR LOCAL LAW IN TENDED TO PROTECT TH E PUBLIC, A MANUFACTURER , 32
DISTRIBUTOR, OR FACTORY BRANCH MA Y NOT: 33
(I) PROHIBIT A DEALER FRO M LISTING A VEHICLE FOR SALE 34
OR LEASE ON THE DEAL ER’S WEBSITE AT THE PURCHASE PRIC E; 35 HOUSE BILL 274 3
(II) COERCE OR REQUIRE A D EALER TO LIST A PRIC E ON THE 1
DEALER’S WEBSITE THAT IS DI FFERENT FROM THE PUR CHASE PRICE OF A VEH ICLE; 2
OR 3
(III) TAKE AN ADVERSE ACTIO N AGAINST A DEALER F OR LISTING 4
A VEHICLE FOR SALE A T A PARTICULAR PRICE ON THE DEALER ’S WEBSITE. 5
[(3)] (4) A manufacturer, distributor, or factory branch may not reduce 6
the price of a motor vehicle charged to a dealer or provide different financing terms to a 7
dealer in exchange for the dealer’s agreement to: 8
(i) Maintain an exclusive sales or service facility; 9
(ii) Build or alter a sales or service facility; or 10
(iii) Participate in a floor plan or other financing arrangement. 11
(5) NOTHING IN THIS SUBSE CTION PROHIBITS A MANUFACT URER, 12
DISTRIBUTOR, OR FACTORY BRANCH FR OM REQUIRING ALL DEA LERS TO INCLUDE 13
FREIGHT OR DEALER PR OCESSING CHARGES IN THE PRICES LISTED ON A DEALER’S 14
WEBSITE. 15
15–313. 16
(a) A dealer or an agent or employee of a dealer may not use any advertisement 17
that is in any way false, deceptive, or misleading. 18
(b) A dealer or an agent or employee of a dealer may not by any means advertise 19
or offer to the public any vehicle without intent to sell it as advertised or offered. 20
SECTION 2. AND BE IT F URTHER ENACTED, That this Act shall take effect 21
October 1, 2022. 22