Maryland House Bill HB274

Maryland 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22

Caption

Vehicle Laws – Manufacturers and Dealers – Prices Listed on Dealer Website

Impact

The enactment of HB 274 will significantly impact state laws relating to the advertising and pricing practices within the automotive industry. It is expected to foster a more equitable marketplace by ensuring that all dealers can advertise vehicles consistently and transparently. By preventing manufacturers from exerting undue pressure on dealers, the bill aims to support fair competition among dealers while enhancing consumer trust in vehicle pricing.

Summary

House Bill 274 introduces key amendments concerning the relationships between vehicle manufacturers and dealers, particularly focusing on the pricing transparency of vehicles advertised online. The bill prohibits manufacturers, distributors, or factory branches from prohibiting dealers from listing vehicles for sale or lease at their actual purchase price on their websites. Additionally, it bars them from coercing dealers into advertising prices different from the purchase price or penalizing them for such listings. This legislation is aimed at protection against unfair practices in vehicle sales and providing consumers with accurate pricing information.

Contention

Some potential points of contention surrounding HB 274 may arise from manufacturers who could view these regulations as an infringement on their business practices. Critics may argue that the flexibility in price settings is crucial for manufacturers to maintain control over their branding and profit margins. There may be concerns related to whether such regulations could inadvertently affect the financial viability of smaller dealerships that may be less resilient to price wars or competition stimulated by these transparent pricing requirements.