Bill > H1293

This bill modifies Massachusetts law regarding motor vehicle service contracts by expanding definitions and protecting consumer choice. It adds new definitions for terms like "consumer product" and "motor vehicle distributor", and significantly broadens the definition of "service contract" to include specific types of vehicle protection like tire damage repair, paintless dent removal, windshield chip/crack repair, and interior wear and tear repair. The bill also introduces important consumer protections by prohibiting motor vehicle manufacturers, distributors, and representatives from coercing car dealers into exclusively selling extended service contracts or maintenance plans. Specifically, they cannot penalize dealers for not selling these contracts, include mandatory contract sales in franchise agreements, measure dealer performance based on these sales, or require exclusive promotion of their specific service contracts. However, manufacturers can still provide voluntary incentives for dealers to sell these products. The bill also maintains exemptions for certain types of warranties and service contracts, such as those from public utilities, mechanical breakdown insurance, and manufacturer warranties, while ensuring that manufacturer service contracts still generally comply with existing regulations.

Business and Industry

https://malegislature.gov/Bills/194/H1293