Bill > S177

This bill aims to further regulate business practices between motor vehicle dealers, manufacturers, and distributors by amending Chapter 93B, which governs these relationships. Key provisions include prohibiting manufacturers from offering lower prices or incentives on new vehicles to one dealer over another in the Commonwealth unless available equally to all dealers, with exceptions for sales to government entities or for driver education programs. It also prevents manufacturers from forcing dealers to change locations, make substantial facility upgrades, or replace facilities unless certain conditions are met, such as existing programs or health/safety requirements, and establishes a seven-year moratorium on forcing major facility changes after a new construction or renovation. Furthermore, the bill restricts manufacturers from demanding customer lists or service files unless necessary for specific transactions or legal obligations, and prohibits them from sharing or selling this customer data without dealer consent. It also requires manufacturers to give dealers 60 days' notice before altering their designated geographic performance areas and provides dealers with a process to protest such changes. Additionally, manufacturers cannot force dealers to buy goods or services from a designated vendor for facility improvements without allowing the dealer to source comparable items from their own chosen vendor, with some exceptions for specific materials. The bill also clarifies that franchise agreements used for termination or non-renewal must be executed within 90 days of their use, and if a manufacturer fails to properly notify a dealer of non-renewal, the franchise will continue under the last agreed-upon terms. Importantly, manufacturers will be required to indemnify dealers for damages arising from defective vehicle design or manufacturing, unless the dealer's negligence is the sole cause. Finally, manufacturers are prohibited from dictating retail prices for parts or labor on customer repairs and cannot penalize dealers for exporting vehicles if the dealer acted in good faith and did not know about the export intention, with specific notice requirements before adverse actions are taken.