The South Carolina Consumer Freedom Act aims to amend Section 56-15-45 of the South Carolina Code of Laws to allow automotive manufacturers that own or operate a manufacturing factory or assembly plant in the state, and have never had dealer franchise agreements, to sell vehicles directly to consumers. This change is intended to enhance consumer choice and market freedom, promoting a competitive automotive market that benefits consumers by potentially lowering prices and increasing the variety of available vehicles. The bill emphasizes that it will not disrupt the existing franchise dealer system, which continues to provide essential services such as vehicle sales, financing, maintenance, and repairs.

The proposed legislation includes specific provisions that define the conditions under which manufacturers can operate without a franchise dealership. Notably, it introduces a new clause that permits manufacturers who meet certain criteria—such as having no franchised dealers in the state for the past ten years and being incorporated in the U.S.—to engage in direct sales. Additionally, the bill clarifies that manufacturers can own facilities for warranty repairs, provided they comply with the outlined regulations. The act will take effect upon the Governor's approval, reinforcing the state's commitment to consumer rights while supporting existing automotive retail dealers.

Statutes affected:
01/16/2025: 56-15-45
01/16/2025-A: 56-15-45
Latest Version: 56-15-45