Raised Bill No. 412 seeks to amend existing laws governing the advertising and pricing practices of automobile dealers to enhance transparency and protect consumer rights. Key provisions require dealers to include any dealer conveyance or processing fees in the advertised price of vehicles, alongside federal taxes and delivery costs, while clearly stating that state or local taxes and registration fees are excluded. Advertisements must also disclose the amounts of any dealer fees in bold type. Violations of these requirements could lead to fines of up to one thousand dollars, and the Commissioner of Motor Vehicles is empowered to suspend or revoke a dealer's license for non-compliance. The bill also introduces new definitions, such as "substantial alteration" and "consumer data," and clarifies that quoted selling prices must include negotiable dealer fees.

Additionally, the bill modifies the Franchise Act to outline the responsibilities of dealers and manufacturers, including compensation protocols for used vehicles subject to federal safety recalls. If a manufacturer fails to provide necessary parts within thirty days of a stop-sale order, dealers are entitled to compensation based on the vehicle's value. The bill also establishes regulations for consumer data management, requiring manufacturers to comply with data protection laws and provide transparency regarding data sharing with third parties. Importantly, it mandates that manufacturers indemnify dealers for third-party claims related to consumer data violations. The proposed changes will take effect on October 1, 2026, and will amend several sections of current law while introducing new provisions.

Statutes affected:
Raised Bill: 42-133r, 42-133cc