NY State Senate Bill 2023-S8393A

Senate Bill S8393A

2023-2024 Legislative Session

Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold

download bill text pdf

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 12, 2024	print number 8393a
Apr 12, 2024	amend and recommit to consumer protection
Jan 26, 2024	referred to consumer protection

Bill Amendments

Original

A (Active)

2023-S8393 - Details

See Assembly Version of this Bill:: A9062
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §198-d, Gen Bus L

2023-S8393 - Summary

Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold; provides that any manufacturer, dealer, or agent of a manufacturer or dealer that fails to comply with such requirements shall be assessed a civil penalty not to exceed two hundred fifty dollars per point of sale for each violation.

2023-S8393 - Sponsor Memo

                                 
BILL NUMBER: S8393

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
motor vehicle manufacturers and dealers from charging a subscription fee
for certain functions of a motor vehicle after the vehicle is sold

 
PURPOSE:

To prohibit motor vehicle dealers and manufacturers from charging
subscription fees for features currently installed in the vehicle at
time of purchase.

 
SUMMARY OF PROVISIONS:

Section 1: Stipulates that no manufacturer, dealer, or agent of a
manufacturer or dealer can offer to a consumer a subscription service or
charge a post-purchase fee for any motor vehicle feature that:

1) uses components and hardware already installed on the vehicle at time

of purchase, or

2) functions after activation without ongoing expense to the dealer,
manufacturer, or any third-party service provider.

This section does not prohibit a dealer or manufacturer from producing
any software update to a consumer as long as the software update does
not remedy a safety-related defect that is required to be provided to
the consumer.

Section 2: Sets the effective date.

 
JUSTIFICATION:

Car companies are increasingly charging consumers a subscription fee to
access certain features on their vehicles, such as heated seats, enter-
tainment options, enhanced navigation, and hands-free driving, even
though the components necessary for such features to function are
already installed on the vehicle at the time of sale.

The New York Post reported that BMW recently began charging car owners
in several countries $18 per month to turn on their heated seats. In
September of 2023, Axios reported that Ford recently announced new
options for accessing its top-rated BlueCruise hands-free highway driv-
ing technology; buyers can activate BlueCruise at the time of purchase
for three years by rolling the $2,100 cost into the financing or they
can activate it later for $800 a year or $75 a month. Toyota and General
Motors are also making similar moves, with GM telling investors it aims
to generate a significant amount of profit from charging these
subscription fees.

During this time of rising consumer prices, it is important to guard
against these business practices that hurt New York consumers. By
restricting the offering of subscription services or post-purchase fees
for features that do not present an ongoing expense for dealers or
manufacturers, this bill seeks to enhance transparency in pricing for
consumers. This bill aims to establish clear rules, prevent exploitative
practices as vehicles become more technologically advanced, and prevent
post-purchase fees as a future automotive business model.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2023-S8393 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8393
 
                             I N  S E N A T E
 
                             January 26, 2024
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   motor  vehicle  manufacturers and dealers from charging a subscription
   fee for certain functions of a motor vehicle after the vehicle is sold

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   § 198-D. VEHICLE FEATURE SUBSCRIPTIONS. (A) AS USED IN THIS SECTION:
   (1)  "CONSUMER"  SHALL  MEAN  THE PURCHASER, OR LESSEE, OTHER THAN FOR
 PURPOSES OF RESALE, OF A MOTOR VEHICLE.
   (2) "DEALER" SHALL HAVE THE SAME MEANING AS SUCH TERM  IS  DEFINED  BY
 SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (3)  "MANUFACTURER"  SHALL  MEAN  A  PERSON OR BUSINESS ENGAGED IN THE
 MANUFACTURING OR ASSEMBLING OF NEW MOTOR VEHICLES.
   (4) "MOTOR VEHICLE" SHALL HAVE  THE  SAME  MEANING  AS  SUCH  TERM  IS
 DEFINED  BY  SECTION  ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC
 LAW.
   (5) "MOTOR VEHICLE FEATURE" SHALL MEAN ANY CONVENIENCE OR SAFETY FUNC-
 TION INCLUDED ON THE MOTOR VEHICLE, INCLUDING BUT NOT LIMITED TO  HEATED
 SEATS  OR  DRIVER ASSISTANCE, THAT TYPICALLY IS OFFERED TO A CONSUMER AS
 AN UPGRADE AT THE TIME OF PURCHASE OR LEASE OF THE MOTOR VEHICLE.
   (6)  "SUBSCRIPTION  SERVICE"  SHALL  MEAN  A  SERVICE  PROVIDED  ON  A
 SUBSCRIPTION  BASIS  IN EXCHANGE FOR A RECURRING PAYMENT, INCLUDING, BUT
 NOT LIMITED TO, A WEEKLY, MONTHLY, OR ANNUAL PAYMENT CHARGED TO AND MADE
 BY A CONSUMER BUT SHALL NOT INCLUDE THIRD-PARTY SERVICES, SUCH AS  INFO-
 TAINMENT FEATURES, SATELLITE RADIO, OR IN-VEHICLE WI-FI.
   (B)  NO  MANUFACTURER,  DEALER,  OR  AGENT OF A MANUFACTURER OR DEALER
 SHALL OFFER TO A CONSUMER A SUBSCRIPTION SERVICE OR CHARGE  A  POST-PUR-
 CHASE FEE FOR ANY MOTOR VEHICLE FEATURE THAT:
   (1)  UTILIZES  COMPONENTS  AND HARDWARE ALREADY INSTALLED ON THE MOTOR
 VEHICLE AT THE TIME OF PURCHASE OR LEASE BY THE CONSUMER; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13200-01-3

 S. 8393                             2
 
   (2) WOULD FUNCTION AFTER ACTIVATION WITHOUT  ONGOING  EXPENSE  TO  THE
 DEALER, MANUFACTURER, OR ANY THIRD-PARTY SERVICE PROVIDER.
   (C)  THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO PROHIBIT
 A DEALER OR MANUFACTURER FROM PROVIDING ANY SOFTWARE UPDATE TO A CONSUM-
 ER, PROVIDED THE DEALER OR MANUFACTURER DOES NOT CHARGE THE  CONSUMER  A
 FEE  FOR  ANY  SOFTWARE UPDATE REMEDYING A SAFETY-RELATED DEFECT THAT IS
 REQUIRED TO BE PROVIDED TO THE CONSUMER AT NO COST.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

2023-S8393A (ACTIVE) - Details

See Assembly Version of this Bill:: A9062
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §198-d, Gen Bus L

2023-S8393A (ACTIVE) - Summary

2023-S8393A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8393A

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
motor vehicle manufacturers and dealers from charging a subscription fee
for certain functions of a motor vehicle after the vehicle is sold

 
PURPOSE:

To prohibit motor vehicle dealers and manufacturers from charging
subscription fees for features currently installed in the vehicle at
time of purchase.

 
SUMMARY OF PROVISIONS:

Section 1: Stipulates that no manufacturer, dealer, or agent of a
manufacturer or dealer can offer to a consumer a subscription service or
charge a post-purchase fee for any motor vehicle feature that:

1) uses components and hardware already installed on the vehicle at time

of purchase, or

2) functions after activation without ongoing expense to the dealer,
manufacturer, or any third-party service provider.

Establishes a civil penalty for any manufacturer, dealer, or agent of a
manufacturer or dealer who fails to comply with the requirements of this
section.

This section does not prohibit a dealer or manufacturer from producing
any software update to a consumer as long as the software update does
not remedy a safety-related defect that is required to be provided to
the consumer.

Section 2: Sets the effective date.

 
JUSTIFICATION:

Car companies are increasingly charging consumers a subscription fee to
access certain features on their vehicles, such as heated seats, enter-
tainment options, enhanced navigation, and hands-free driving, even
though the components necessary for such features to function are
already installed on the vehicle at the time of sale.

The New York Post reported that BMW recently began charging car owners
in several countries $18 monthly to turn on their heated seats. In
September of 2023, Axios reported that Ford recently announced new
options for accessing its top-rated BlueCruise hands-free highway driv-
ing technology; buyers can activate BlueCruise at the time of purchase
for three years by rolling the $2,100 cost into the financing or they
can activate it later for $800 a year or $75 a month.  Toyota and Gener-
al Motors are also making similar moves, with GM telling investors it
aims to generate a significant amount of profit from charging these
subscription fees.

During this time of rising consumer prices, it is important to guard
against these business practices that hurt New York consumers. By
restricting the offering of subscription services or post-purchase fees
for features that do not present an ongoing expense for dealers or
manufacturers, this bill seeks to enhance transparency in pricing for
consumers. This bill aims to establish clear rules, prevent exploitative
practices as vehicles become more technologically advanced, and prevent
post-purchase fees as a future automotive business model.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2023-S8393A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8393--A
 
                             I N  S E N A T E
 
                             January 26, 2024
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   motor  vehicle  manufacturers and dealers from charging a subscription
   fee for certain functions of a motor vehicle after the vehicle is sold
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   § 198-D. VEHICLE FEATURE SUBSCRIPTIONS. (A) AS USED IN THIS SECTION:
   (1)  "CONSUMER"  SHALL  MEAN  THE PURCHASER, OR LESSEE, OTHER THAN FOR
 PURPOSES OF RESALE, OF A MOTOR VEHICLE.
   (2) "DEALER" SHALL HAVE THE SAME MEANING AS SUCH TERM  IS  DEFINED  BY
 SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (3)  "MANUFACTURER"  SHALL  MEAN  A  PERSON OR BUSINESS ENGAGED IN THE
 MANUFACTURING OR ASSEMBLING OF NEW MOTOR VEHICLES.
   (4) "MOTOR VEHICLE" SHALL HAVE  THE  SAME  MEANING  AS  SUCH  TERM  IS
 DEFINED  BY  SECTION  ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC
 LAW.
   (5) "MOTOR VEHICLE FEATURE" SHALL MEAN ANY CONVENIENCE OR SAFETY FUNC-
 TION INCLUDED ON THE MOTOR VEHICLE, INCLUDING BUT NOT LIMITED TO  HEATED
 SEATS  OR  DRIVER ASSISTANCE, THAT TYPICALLY IS OFFERED TO A CONSUMER AS
 AN UPGRADE AT THE TIME OF PURCHASE OR LEASE OF THE MOTOR VEHICLE.
   (6)  "SUBSCRIPTION  SERVICE"  SHALL  MEAN  A  SERVICE  PROVIDED  ON  A
 SUBSCRIPTION  BASIS  IN EXCHANGE FOR A RECURRING PAYMENT, INCLUDING, BUT
 NOT LIMITED TO, A WEEKLY, MONTHLY, OR ANNUAL PAYMENT CHARGED TO AND MADE
 BY A CONSUMER BUT SHALL NOT INCLUDE THIRD-PARTY SERVICES, SUCH AS  INFO-
 TAINMENT FEATURES, SATELLITE RADIO, OR IN-VEHICLE WI-FI.
   (B)  NO  MANUFACTURER,  DEALER,  OR  AGENT OF A MANUFACTURER OR DEALER
 SHALL OFFER TO A CONSUMER A SUBSCRIPTION SERVICE OR CHARGE  A  POST-PUR-
 CHASE FEE FOR ANY MOTOR VEHICLE FEATURE THAT:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13200-04-4

 S. 8393--A                          2
 
   (1)  UTILIZES  COMPONENTS  AND HARDWARE ALREADY INSTALLED ON THE MOTOR
 VEHICLE AT THE TIME OF PURCHASE OR LEASE BY THE CONSUMER; AND
   (2)  WOULD  FUNCTION  AFTER  ACTIVATION WITHOUT ONGOING EXPENSE TO THE
 DEALER, MANUFACTURER, OR ANY THIRD-PARTY SERVICE PROVIDER.
   (C) THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO  PROHIBIT
 A DEALER OR MANUFACTURER FROM PROVIDING ANY SOFTWARE UPDATE TO A CONSUM-
 ER,  PROVIDED  THE DEALER OR MANUFACTURER DOES NOT CHARGE THE CONSUMER A
 FEE FOR ANY SOFTWARE UPDATE REMEDYING A SAFETY-RELATED  DEFECT  THAT  IS
 REQUIRED TO BE PROVIDED TO THE CONSUMER AT NO COST.
   (D)  ANY  MANUFACTURER,  DEALER,  OR AGENT OF A MANUFACTURER OR DEALER
 THAT FAILS TO COMPLY WITH THE REQUIREMENTS  OF  THIS  SECTION  SHALL  BE
 ASSESSED  A  CIVIL  PENALTY  NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS PER
 POINT OF SALE FOR EACH VIOLATION.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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