NY State Senate Bill 2025-S5708

Senate Bill S5708

2025-2026 Legislative Session

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

download bill text pdf

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 28, 2025	referred to consumer protection

2025-S5708 (ACTIVE) - Details

See Assembly Version of this Bill:: A1095
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §198-d, Gen Bus L
Versions Introduced in 2023-2024 Legislative Session:: S8393, A9062

2025-S5708 (ACTIVE) - Summary

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.

2025-S5708 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5708

SPONSOR: SKOUFIS
 
TITLE OF BILL:

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

 
PURPOSE:

To prohibit motor vehicle dealers and manufacturers from charging
subscription fees for features currently installed in the vehicle at
time of purchase.

 
SUMMARY OF PROVISIONS:

Section 1: Stipulates that no manufacturer, dealer, or agent of a
manufacturer or dealer can offer to a consumer a subscription service or
charge a post-purchase fee for any motor vehicle feature that: 1) uses
components and hardware already installed on the vehicle at the time of
purchase, or 2) functions after activation without ongoing cost to the

dealer, manufacturer, or any third-party service provider.

This section does not prohibit a dealer or manufacturer from producing
any software update to a consumer as long as the software update does
not remedy a safety-related defect that is required to be provided to
the consumer. It also provides exclusions for certain software-based
features offered by manufacturers and third parties, such as navigation
system updates, infotainment features, satellite radio, and in-vehicle
WiFi. Finally, it ensures that manufacturers and dealers cannot charge
for software-based safety recall repairs.

Section 2: Sets Effective Date.

 
JUSTIFICATION:

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.

 
LEGISLATIVE HISTORY:

Senate

2023: N/A

2024: S8393B, Advanced to Third Reading

Assembly

2023: N/A

2024: A9062B, Passed Assembly

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
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.

2025-S5708 (ACTIVE) - Bill Text download pdf

                             
                     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.

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