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Bill > S568
NJ S568
NJ S568Prohibits motor vehicle manufacturer or dealer from requiring subscription for certain motor vehicle features.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill prohibits a motor vehicle dealer or manufacturer of motor vehicles sold in this State from offering to a consumer a subscription service for any motor vehicle feature that (1) utilizes components and hardware already installed on the motor vehicle at the time of the vehicle's purchase or lease; and (2) would function after activation without ongoing expense to the dealer, manufacturer, or third-party service provider. The provisions of this bill do not apply to any third-party service provider that offers features such as satellite radio or in-car Wi-Fi. The bill defines "motor vehicle feature" to mean any convenience or safety function included on the motor vehicle, such as heated seats or driver assistance that typically is offered to a consumer as an upgrade at the time of purchase or lease of the motor vehicle. In addition, the bill defines "subscription service" to mean a service provided on a subscription basis in exchange for a recurring payment, including, but not limited to, a weekly, monthly, or annual payment charged to and made by a consumer. A violation of the bill's provisions is an unlawful practice under the consumer fraud act punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. The sponsor notes that car companies are increasingly seeking to charge consumers a subscription fee to access certain features on their vehicles, such as heated seats, even though the components necessary for the feature to function are already installed on the vehicle at the time of sale. When a consumer subscribes to the feature, the car company uses software to remotely activate the feature during the subscription period. Car companies assert that a subscription-based business model would provide more choice to the consumer, but the practice requires installing all of the necessary components and hardware on the vehicle before the consumer decides to subscribe to the feature, which will likely raise the purchase price for every consumer, whether they intend to subscribe to the feature or not. The sponsor asserts that during this time of rising consumer prices, it is important to guard against business practices that primarily serve to increase corporate profits.
AI Summary
This bill prohibits motor vehicle dealers and manufacturers in the state from charging consumers a recurring payment, known as a subscription service, for features like heated seats or driver assistance that use hardware already installed in the vehicle at the time of purchase or lease and do not incur ongoing costs for the seller or provider once activated. This restriction does not apply to third-party services like satellite radio or in-car Wi-Fi. Violations are considered unlawful practices under the consumer fraud act, carrying penalties of up to $10,000 for a first offense and $20,000 for subsequent offenses, along with potential cease and desist orders, punitive damages, and treble damages for the injured party, aiming to prevent manufacturers from increasing vehicle prices to boost corporate profits by charging for already-equipped features.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S568 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/568_I1.HTM |
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