Bill Text: NY A09062 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Engrossed) 2024-06-03 - REFERRED TO RULES [A09062 Detail]

Download: New_York-2023-A09062-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9062--A

                   IN ASSEMBLY

                                    February 6, 2024
                                       ___________

        Introduced  by  M.  of  A.  MAGNARELLI,  GLICK, GUNTHER, LAVINE, THIELE,
          BURDICK, WEPRIN, EPSTEIN, SANTABARBARA, DAVILA,  LEVENBERG,  STECK  --
          read  once  and  referred  to  the  Committee  on Consumer Affairs and
          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:

     1    Section 1. The general business law is amended by adding a new section
     2  198-d to read as follows:
     3    § 198-d. Vehicle feature subscriptions. (a) As used in this section:
     4    (1)  "Consumer"  shall  mean  the purchaser, or lessee, other than for
     5  purposes of resale, of a motor vehicle.
     6    (2) "Dealer" shall have the same meaning as such term  is  defined  by
     7  section four hundred fifteen of the vehicle and traffic law.
     8    (3)  "Manufacturer"  shall  mean  a  person or business engaged in the
     9  manufacturing or assembling of new motor vehicles.
    10    (4) "Motor vehicle" shall have  the  same  meaning  as  such  term  is
    11  defined  by  section  one hundred twenty-five of the vehicle and traffic
    12  law.
    13    (5) "Motor vehicle feature" shall mean any convenience or safety func-
    14  tion included on the motor vehicle, including but not limited to  heated
    15  seats  or  driver assistance, that typically is offered to a consumer as
    16  an upgrade at the time of purchase or lease of the motor vehicle.
    17    (6)  "Subscription  service"  shall  mean  a  service  provided  on  a
    18  subscription  basis  in exchange for a recurring payment, including, but
    19  not limited to, a weekly, monthly, or annual payment charged to and made
    20  by a consumer but shall not include third-party services, such as  info-
    21  tainment features, satellite radio, or in-vehicle Wi-Fi.
    22    (b)  No  manufacturer,  dealer,  or  agent of a manufacturer or dealer
    23  shall offer to a consumer a subscription service or charge  a  post-pur-
    24  chase fee for any motor vehicle feature that:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13200-03-4
        A. 9062--A                          2

     1    (1)  utilizes  components  and hardware already installed on the motor
     2  vehicle at the time of purchase or lease by the consumer; and
     3    (2)  would  function  after  activation without ongoing expense to the
     4  dealer, manufacturer, or any third-party service provider.
     5    (c) The provisions of this section shall not be construed to  prohibit
     6  a dealer or manufacturer from providing any software update to a consum-
     7  er,  provided  the dealer or manufacturer does not charge the consumer a
     8  fee for any software update remedying a safety-related  defect  that  is
     9  required to be provided to the consumer at no cost.
    10    (d)  Any  manufacturer,  dealer,  or agent of a manufacturer or dealer
    11  that fails to comply with the requirements  of  this  section  shall  be
    12  assessed  a  civil  penalty  not to exceed two hundred fifty dollars per
    13  point of sale for each violation.
    14    § 2. This act shall take effect on the ninetieth day  after  it  shall
    15  have become a law. Effective immediately, the addition, amendment and/or
    16  repeal  of  any  rule  or regulation necessary for the implementation of
    17  this act on its effective date are authorized to be made  and  completed
    18  on or before such effective date.