Texas House Bill HB3308

Texas 2017 - 85th Regular

Caption

Relating to certain vehicle protection products.

Impact

One of the significant changes introduced by HB3308 is the prohibition against retail sellers requiring buyers to purchase a vehicle protection product as a condition for completing a vehicle sale unless it is installed on the vehicle at the time of the transaction. This reform aims to protect consumers from potentially misleading sales tactics that could involve unnecessary costs. Additionally, violations of this prohibition are classified as deceptive acts, carrying potential for legal recourse under consumer protection laws. The bill reinforces consumer rights in transactions related to vehicle protection products, ensuring clearer responsibilities for sellers and protectors.

Summary

House Bill 3308 focuses on the regulation of vehicle protection products in Texas. It seeks to establish clear definitions and guidelines for what constitutes a vehicle protection product and the responsibilities of sellers and warrantors. These products are designed to prevent loss or damage to vehicles, and the bill mandates that consumers be informed about the terms of any warranties associated with these products. Notably, the bill distinguishes between products that are installed at the time of vehicle purchase and those that are not, laying out the obligations of sellers in each scenario.

Conclusion

Overall, HB3308 represents a significant effort to clarify and regulate the sale of vehicle protection products in Texas. By focusing on transparency and consumer protection, the bill addresses longstanding issues related to deceptive practices in the vehicle sales industry. It is expected to shape future consumer interactions and negotiations surrounding vehicle protection warranties while providing a framework for enforcement against misleading sales practices.

Contention

While the bill has garnered support for enhancing consumer protections, some stakeholders highlighted concerns about the implications for car dealerships and sellers of vehicle protection products. These proponents argue that additional restrictions could limit sales potential and the variety of options available for consumers. Critics have raised questions regarding the balance between consumer protection and business interests, particularly regarding how these regulations might affect the overall market for vehicle protection products.