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Bill > S179


MA S179

Further regulating business practices between motor vehicle dealers, manufacturers, and distributors


summary

Introduced
01/22/2019
In Committee
01/22/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

191st General Court

Bill Summary

For legislation to further regulate business practices between motor vehicle dealers, manufacturers, and distributors. Consumer Protection and Professional Licensure.

AI Summary

This bill aims to further regulate business practices between motor vehicle dealers, manufacturers, and distributors. It proposes several key provisions: 1. It prohibits manufacturers, distributors, or franchisor representatives from offering to sell or selling new motor vehicles to any person in the commonwealth at a lower actual price than what is offered to other dealers, with some exceptions. It also requires manufacturers, distributors, or franchisor representatives to offer equal terms to all dealers, which excludes the opportunity to participate in any program that requires facility investment. 2. It prohibits manufacturers or distributors from unreasonably withholding participation in lead generation marketing programs or warranty policy adjustments, and requires them to distribute leads from direct internet-based inquiries in an equitable manner to dealers. 3. It places restrictions on a manufacturer's or distributor's ability to require dealers to change, replace, or substantially alter their facilities, and prohibits them from requiring dealers to provide customer lists, service files, or customer information unless necessary for certain specified purposes. 4. It requires manufacturers or distributors to compensate dealers for any used motor vehicles in their inventory that cannot be sold due to a recall, stop sale, or do not drive directive, if a remedy or parts are not available. 5. It provides additional protections for dealers during franchise termination or nonrenewal proceedings, including automatically enjoining the effective date of termination or nonrenewal pending a final court determination. Overall, the bill aims to address various business practices between motor vehicle dealers, manufacturers, and distributors to provide more equitable treatment and protections for dealers.

Committee Categories

Labor and Employment

Sponsors (2)

Last Action

Accompanied a new draft, see S2669 (on 04/30/2020)

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