Bill > SB5377

This bill amends the existing Washington state law governing auto sales and dealership relationships, focusing on protecting new motor vehicle dealers from unfair practices by manufacturers and distributors. The bill maintains and refines existing prohibitions against discriminatory practices, such as selling vehicles or parts at different prices to different dealers, unequal allocation of vehicles, and preventing dealers from participating in multiple vehicle lines. The legislation specifically addresses several key provisions, including restricting manufacturers from competing directly with dealers, limiting their ability to own dealerships (with some exceptions for temporary transitions or diversity initiatives), and preventing manufacturers from coercing dealers into unnecessary facility renovations or changes. The bill adds a new provision allowing a final-stage manufacturer to own or operate a dealership, and removes a previous provision about manufacturers with a vehicle dealer license as of January 1, 2014. The bill aims to create a more equitable marketplace for auto sales by establishing clear guidelines for manufacturer-dealer relationships, protecting dealer investments, and ensuring fair treatment across the industry. The changes will take effect on January 1, 2026, giving stakeholders time to prepare for the new regulations.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5377&Year=2025&Initiative=false