SB 208
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 208 (Senator Hough, et al.)
Judicial Proceedings Economic Matters
Vehicle Laws – Manufacturers and Dealers – Prices Listed on Dealer Websites
This bill establishes that a manufacturer, distributor, or factory branch may not (1) prohibit
a dealer from listing a vehicle for sale or lease on the dealer’s website at the purchase price;
(2) coerce or require a dealer to list a price on the dealer’s website that is different from the
purchase price of a vehicle; or (3) take an adverse action against a dealer for listing a
vehicle for sale at a particular price on the dealer’s website. This provision of the bill does
not apply to situations in which a dealer violates existing prohibitions related to deceptive
advertising practices, advertising vehicles without intent to sell as advertised, or a State or
local law intended to protect the public. A manufacturer, distributor, or factory branch may
still require all dealers to include freight or dealer processing charges in the prices listed
on the dealer’s website.
Fiscal Summary
State Effect: The bill does not materially affect State finances or operations.
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: Minimal.
Analysis
Bill Summary: The bill defines “purchase price” as the full delivered price of a vehicle
(excluding only taxes, title fees, and any freight or dealer processing charges disclosed in
accordance with State law).
Current Law: A motor vehicle manufacturer, distributor, or factory branch must be
licensed by the Motor Vehicle Administration (MVA) in order to, among other things,
transfer new vehicles and conduct business in new vehicles in Maryland. Likewise, a
person may not conduct the business of a dealer unless licensed by MVA.
Coercion of Vehicle Dealers
In general, a manufacturer, distributor, or factory branch (whether directly or through an
agent, employee, affiliate, or representative) may not coerce any dealer to make
any agreement with the manufacturer, distributor, or factory branch (or their agent,
employee, affiliate, or representative). “Coerce” means to compel (or attempt to compel)
by threat of harm, breach of contract, or other adverse action or consequences (including
the loss of any incentive or other benefit made available to other dealers of the same line
make in the State). “Coerce” also includes to act in a manner that violates the general
requirement that a manufacturer, distributor, or factory branch (whether directly or through
an agent, employee, or representative) act in good faith. However, “coerce” does not
encompass arguing, urging, recommending, or persuading.
Prohibited Advertising Practices
A dealer (or an agent or employee of a dealer) may not (1) use any advertisement that is in
any way false, deceptive, or misleading or (2) advertise or offer by any means to the public
any vehicle without intent to sell it as advertised or offered. A person convicted of violating
these requirements is subject to imprisonment for up to two months and/or a fine of up to
$500.
Additional Information
Prior Introductions: SB 178 of 2020, as amended, passed the Senate and was referred to
the House Economic Matters Committee, but no further action was taken. Its cross file,
HB 212, had a hearing in the House Economic Matters Committee, but no further action
was taken.
Designated Cross File: None.
Information Source(s): Maryland Department of Transportation; Department of
Legislative Services
SB 208/ Page 2
Fiscal Note History: First Reader - January 15, 2021
rh/ljm Third Reader - February 5, 2021
Analysis by: Eric F. Pierce Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 208/ Page 3


Statutes affected:
Text - First - Vehicle Laws – Manufacturers and Dealers – Prices Listed on Dealer Websites: 15-207 Transportation, 15-313 Transportation
Text - Third - Vehicle Laws – Manufacturers and Dealers – Prices Listed on Dealer Websites: 15-207 Transportation, 15-313 Transportation