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

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5708
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 28, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   motor  vehicle  manufacturers and dealers from charging a subscription
   fee for certain functions of a motor vehicle after the vehicle is sold

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   § 198-D. VEHICLE FEATURE SUBSCRIPTIONS. (A) AS USED IN THIS SECTION:
   (1)  "CONSUMER"  SHALL  MEAN  THE PURCHASER, OR LESSEE, OTHER THAN FOR
 PURPOSES OF RESALE, OF A MOTOR VEHICLE.
   (2) "DEALER" SHALL HAVE THE SAME MEANING AS SUCH TERM  IS  DEFINED  BY
 SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (3)  "MANUFACTURER"  SHALL  MEAN  A  PERSON OR BUSINESS ENGAGED IN THE
 MANUFACTURING OR ASSEMBLING OF NEW MOTOR VEHICLES.
   (4) "MOTOR VEHICLE" SHALL HAVE  THE  SAME  MEANING  AS  SUCH  TERM  IS
 DEFINED  BY  SECTION  ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC
 LAW.
   (5) "MOTOR VEHICLE FEATURE" SHALL MEAN ANY CONVENIENCE OR SAFETY FUNC-
 TION INCLUDED ON THE MOTOR VEHICLE, INCLUDING BUT NOT LIMITED TO  HEATED
 SEATS  THAT TYPICALLY IS OFFERED TO A CONSUMER AS AN UPGRADE AT THE TIME
 OF PURCHASE OR LEASE OF THE MOTOR VEHICLE.
   (6)  "SUBSCRIPTION  SERVICE"  SHALL  MEAN  A  SERVICE  PROVIDED  ON  A
 SUBSCRIPTION  BASIS  IN EXCHANGE FOR A RECURRING PAYMENT, INCLUDING, BUT
 NOT LIMITED TO, A WEEKLY, MONTHLY, OR ANNUAL PAYMENT CHARGED TO AND MADE
 BY A CONSUMER BUT SHALL NOT INCLUDE  A  CONSUMER'S  REOCCURRING  PAYMENT
 MADE PURSUANT TO A RETAIL INSTALLMENT CONTRACT OR LEASE CONTRACT FOR THE
 PURCHASE OR LEASE OF A MOTOR VEHICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01301-01-5
 S. 5708                             2
 
   (B)  NO  MANUFACTURER,  DEALER,  OR  AGENT OF A MANUFACTURER OR DEALER
 SHALL OFFER TO A CONSUMER A SUBSCRIPTION SERVICE FOR ANY  MOTOR  VEHICLE
 FEATURE THAT:
   (1)  UTILIZES  COMPONENTS  AND HARDWARE ALREADY INSTALLED ON THE MOTOR
 VEHICLE AT THE TIME OF PURCHASE OR LEASE BY THE CONSUMER; AND
   (2) WOULD FUNCTION AFTER ACTIVATION WITHOUT ONGOING COST TO OR SUPPORT
 BY THE DEALER, MANUFACTURER, OR ANY THIRD-PARTY SERVICE PROVIDER.
   (C) THE PROVISIONS OF THIS SECTION SHALL NOT:
   (1) APPLY TO NAVIGATION SYSTEM UPDATES, INFOTAINMENT FEATURES,  SATEL-
 LITE  RADIO, IN-VEHICLE WI-FI, TELEMATICS SERVICES, ROADSIDE ASSISTANCE,
 SOFTWARE-DEPENDENT DRIVER ASSISTANCE OR DRIVER AUTOMATION  FEATURES,  OR
 VEHICLE-CONNECTED  SERVICES THAT RELY ON CELLULAR OR OTHER DATA NETWORKS
 FOR CONTINUED OPERATION; OR
   (2) BE CONSTRUED TO PROHIBIT A DEALER OR MANUFACTURER  FROM  PROVIDING
 ANY  SOFTWARE  UPDATE TO A CONSUMER, PROVIDED THE DEALER OR MANUFACTURER
 DOES NOT CHARGE THE CONSUMER A FEE FOR ANY SOFTWARE UPDATE  REMEDYING  A
 SAFETY-RELATED DEFECT THAT IS REQUIRED TO BE PROVIDED TO THE CONSUMER AT
 NO  COST  AS  REQUIRED BY SECTION 573.6 OF TITLE 49 OF THE UNITED STATES
 CODE.
   (D) ANY MANUFACTURER, DEALER, OR AGENT OF  A  MANUFACTURER  OR  DEALER
 THAT  FAILS  TO  COMPLY  WITH  THE REQUIREMENTS OF THIS SECTION SHALL BE
 ASSESSED A CIVIL PENALTY NOT TO EXCEED TWO  HUNDRED  FIFTY  DOLLARS  PER
 POINT OF SALE FOR EACH VIOLATION.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.