North Carolina 2023-2024 Regular Session

North Carolina Senate Bill S857

Introduced
5/2/24  

Caption

Home Warranty Regulatory Reform

Impact

If enacted, S857 would significantly amend existing consumer protection laws by mandating detailed disclosures in service agreements. The bill specifies that companies must clearly list covered items, outline exclusions prominently within the agreement, and inform consumers of their rights regarding contract cancellation. This shift aims to create a more favorable marketplace for consumers by requiring service providers to maintain transparency and accountability, potentially improving the overall quality of service offered in the industry.

Summary

Senate Bill 857, titled 'Home Warranty Regulatory Reform', seeks to enhance consumer protections surrounding home service agreements, which include warranties and agreements for repairs and maintenance of various home appliances and systems. The bill aims to establish clearer guidelines and requirements for home appliance service agreement companies, ensuring that consumers are adequately informed about their rights and the terms of their agreements. By promoting transparency in the language of these agreements, the legislation endeavors to protect consumers from misleading practices and enhance trust in service providers.

Sentiment

The sentiment around S857 appears to be largely supportive within consumer advocacy circles, emphasizing that the bill represents essential progress toward safeguarding consumer rights. Proponents argue that this legislation is necessary to address prevalent issues of vagueness and hidden terms that often disadvantage consumers in home service agreements. However, some industry stakeholders may voice concerns about the potential compliance burdens that these requirements might impose on businesses, particularly smaller firms that could struggle with the increased operational demands.

Contention

Notable points of contention include the balance between consumer protection and business flexibility. Critics within the industry may argue that overly stringent regulations could deter businesses from offering service agreements or increase costs for consumers. The bill’s requirements for timely service completion and the necessity of providing accessible copies of agreements are particularly focal points, with some opposing the strict timelines proposed for service execution. Additional discussions might arise regarding the feasibility of these mandates within the varying contexts of home services, especially concerning different consumer needs and regional market conditions.

Companion Bills

NC H957

Same As Home Warranty Regulatory Reform

Previously Filed As

NC H957

Home Warranty Regulatory Reform

NC H203

Home Warranty Act

NC S607

Regulatory Reform Act of 2024

NC H926

Regulatory Reform Act of 2025

NC H600

Regulatory Reform Act of 2023

NC SB983

Consumer warranty protection: express warranties.

NC S166

2024 Bldg. Code Regulatory Reform

NC H412

Child Care Regulatory Reforms

NC AB1163

Consumer warranty protection: express warranties.

NC S205

Swimming Pools/Housing Regulatory Reform

Similar Bills

NC H203

Home Warranty Act

NC H957

Home Warranty Regulatory Reform

OK HB3761

Contracts; Service Warranty Act; definitions; effective date.

OK HB3370

Contracts; service warranty; definition; home service contracts; effective date.

TX HB4830

Relating to the regulation of service contracts and service contract providers and administrators.

TX SB2584

Relating to the regulation of service contracts and service contract providers and administrators.

MS HB1574

Car manufacturers, dealers and franchisors; prohibit from sharing customer information with third parties.

OK SB1354

Service warranty contracts; allowing for more than one insurer to enter into service warranty contracts or agreements. Effective date.