Bill > H406

This bill further regulates business practices between motor vehicle dealers, manufacturers, and distributors by introducing several key protections and restrictions. The bill prohibits manufacturers from coercing dealers to change dealership locations or facilities without reasonable justification, limits facility improvement requirements, and establishes guidelines for facility improvement programs. It restricts manufacturers' ability to demand customer information, requiring them to indemnify dealers for any data breaches and limiting the sharing of customer data. The bill also prevents manufacturers from arbitrarily changing a dealer's geographic area of responsibility, mandating advance notice and providing dealers with protest mechanisms. Additionally, the legislation regulates warranty compensation by requiring manufacturers to fairly compensate dealers for warranty work at reasonable labor rates, prevents manufacturers from influencing dealers' repair pricing, and mandates disclosure of vehicle features that can be remotely updated. The bill further protects dealers from adverse actions related to vehicle exports when they have exercised due diligence, and requires manufacturers to provide written notice before taking any punitive measures against dealers. These provisions aim to create more balanced and fair business practices in the motor vehicle sales and service industry, protecting dealers from potentially exploitative manufacturer practices.

Labor and Employment

https://malegislature.gov/Bills/194/H406