Tennessee Senate Bill SB1116

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 18 and Title 55, Chapter 17, relative to subscription services for motor vehicle features.

Impact

The legislation is designed to protect consumers from potentially deceptive practices associated with subscription-based access to vehicle features. By classifying any violation of this bill as an unfair or deceptive act under existing consumer protection laws, it allows for multiple violations to be pursued. This could lead to significant legal and financial consequences for automotive companies that fail to comply, directly impacting their business practices in Tennessee.

Summary

Senate Bill 1116 is aimed at addressing subscription services for motor vehicle features in Tennessee. It proposes to amend the Tennessee Code Annotated, specifically Title 47, Chapter 18 and Title 55, Chapter 17, by restricting how motor vehicle dealers and manufacturers can sell subscription services tied to features of motor vehicles. The bill stipulates that dealers or manufacturers cannot sell subscriptions for features that are activated at the time of purchase and do not incur ongoing costs for the dealer or manufacturer post-activation.

Contention

While the bill is positioned as a consumer protection measure, there may be points of contention regarding its implementation and the reaction from the automobile industry. Opponents might argue that it could limit consumers' access to upgrades and enhancements that manufacturers offer as subscription services, which may be beneficial to some buyers. Moreover, how the bill is enforced and interpreted regarding what constitutes ongoing costs related to the features could spark debates among stakeholders in the automotive sector.