S 5708: Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold; provides that any manufacturer, dealer, or agent of a manufacturer or dealer that fails to comply with such requirements shall be assessed a civil penalty not to exceed two hundred fifty dollars per point of sale for each violation.

  
  STATE OF NEW YORK ________________________________________________________________________ 5708 2025-2026 Regular Sessions  IN SENATE 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: 1 Section 1. The general business law is amended by adding a new section 2 198-d to read as follows: 3 § 198-d. Vehicle feature subscriptions. (a) As used in this section: 4 (1) "Consumer" shall mean the purchaser, or lessee, other than for 5 purposes of resale, of a motor vehicle. 6 (2) "Dealer" shall have the same meaning as such term is defined by 7 section four hundred fifteen of the vehicle and traffic law. 8 (3) "Manufacturer" shall mean a person or business engaged in the 9 manufacturing or assembling of new motor vehicles. 10 (4) "Motor vehicle" shall have the same meaning as such term is 11 defined by section one hundred twenty-five of the vehicle and traffic 12 law. 13 (5) "Motor vehicle feature" shall mean any convenience or safety func- 14 tion included on the motor vehicle, including but not limited to heated 15 seats that typically is offered to a consumer as an upgrade at the time 16 of purchase or lease of the motor vehicle. 17 (6) "Subscription service" shall mean a service provided on a 18 subscription basis in exchange for a recurring payment, including, but 19 not limited to, a weekly, monthly, or annual payment charged to and made 20 by a consumer but shall not include a consumer's reoccurring payment 21 made pursuant to a retail installment contract or lease contract for the 22 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 1 (b) No manufacturer, dealer, or agent of a manufacturer or dealer 2 shall offer to a consumer a subscription service for any motor vehicle 3 feature that: 4 (1) utilizes components and hardware already installed on the motor 5 vehicle at the time of purchase or lease by the consumer; and 6 (2) would function after activation without ongoing cost to or support 7 by the dealer, manufacturer, or any third-party service provider. 8 (c) The provisions of this section shall not: 9 (1) apply to navigation system updates, infotainment features, satel- 10 lite radio, in-vehicle Wi-Fi, telematics services, roadside assistance, 11 software-dependent driver assistance or driver automation features, or 12 vehicle-connected services that rely on cellular or other data networks 13 for continued operation; or 14 (2) be construed to prohibit a dealer or manufacturer from providing 15 any software update to a consumer, provided the dealer or manufacturer 16 does not charge the consumer a fee for any software update remedying a 17 safety-related defect that is required to be provided to the consumer at 18 no cost as required by Section 573.6 of Title 49 of the United States 19 Code. 20 (d) Any manufacturer, dealer, or agent of a manufacturer or dealer 21 that fails to comply with the requirements of this section shall be 22 assessed a civil penalty not to exceed two hundred fifty dollars per 23 point of sale for each violation. 24 § 2. This act shall take effect on the ninetieth day after it shall 25 have become a law. Effective immediately, the addition, amendment and/or 26 repeal of any rule or regulation necessary for the implementation of 27 this act on its effective date are authorized to be made and completed 28 on or before such effective date.