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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | March 21, 2023 10:26 AM |
|---|---|
| From: | Senator Marty Flynn |
| To: | All Senate members |
| Subject: | Banning In-Car Subscriptions for Hardware Features on Motor Vehicles |
| As vehicles become more-and-more reliant on new technologies, consumers have more comfort, convenience, and safety features available when shopping for a new car than ever before. Of course, these added features come with additional costs. This fact is made abundantly clear by transaction data showing that the average price paid for a new vehicle in December 2022 was almost $50,000 – an increase of $10,000, or 26 percent, over prices paid in December 2019. This upfront expense to purchase a vehicle is increasingly augmented by ongoing, subscription-based costs for various features and services. In addition to regular ownership expenses, consumers now have the option to pay to utilize certain features such as satellite radio, navigation, and in-vehicle communications support. These features are largely technology- and service-based, receiving regular updates, often remotely, from the manufacturer. A new, worrisome trend that automakers have begun to contemplate – and, in some cases, implement – is applying this subscription-based model to hardware features already present on a vehicle. For instance, outside the United States, BMW began a program requiring subscriptions for heated seats. The vehicles already had all of the necessary equipment installed at time of purchase, but consumers were forced to pay an additional, recurring cost to activate and utilize that feature on their vehicles. This may be good for corporate bottom lines, but it is bad for consumers. I intend to introduce legislation prohibiting automotive dealers and manufacturers from offering subscription services for motor vehicle features that are already installed on the vehicle at the time of purchase or lease. This legislation would not apply to features that would require ongoing expenses to the dealer, manufacturer, or third-party service provider, nor would it apply to any third-party services. A violation of the legislation’s provisions would trigger a civil penalty of $5,000 for each instance. Please join me in sponsoring this legislation to protect Pennsylvania consumers. |