Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold

• Democratic9

◆ The sponsor's argument

Why James Skoufis says this is needed

Car companies are increasingly charging consumers a subscription fee to access certain features on their vehicles, such as heated seats, enter- tainment options, enhanced navigation, and hands-free driving, even though the components necessary for such features to function are already installed on the vehicle at the time of sale. The New York Post reported that BMW recently began charging car owners in several countries $18 per month to turn on their heated seats. In September of 2023, Axios reported that Ford recently announced new options for accessing its top-rated BlueCruise hands-free highway driv- ing technology; buyers can activate BlueCruise at the time of purchase for three years by rolling the $2,100 cost into the financing, or they can activate it later for $800 a year or $75 a month. Toyota and General Motors are also making similar. moves, with GM telling investors it aims to generate a significant amount of profit from charging these subscription fees. During this time of rising consumer prices, it is essential to guard against these business practices that hurt New York consumers. By restricting the offering of subscription services or post-purchase fees for features that do not present an ongoing expense for dealers or manufacturers, this bill seeks to enhance transparency in pricing for consumers. This bill aims to establish clear rules prevent exploitative practices as vehicles become more technologically advanced, and prevent post-purchase fees as a future automotive business model.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.