This bill aims to prohibit motor vehicle manufacturers and dealers in New Jersey from requiring consumers to subscribe to certain features of their vehicles that are already installed at the time of purchase or lease. Specifically, it targets subscription services for motor vehicle features that utilize existing components and hardware and can function without ongoing costs to the dealer, manufacturer, or third-party service provider. The bill defines key terms such as "motor vehicle feature," which includes convenience or safety functions like heated seats or driver assistance, and "subscription service," which refers to services provided for a recurring payment.
Violations of this bill would be 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. Additionally, the Attorney General could issue cease and desist orders, and injured parties may be awarded punitive damages and treble damages. The bill responds to concerns that car companies are increasingly charging subscription fees for features that consumers have already paid for through the purchase price, potentially raising costs for all consumers and prioritizing corporate profits over consumer interests.