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SB 412

AN ACT CONCERNING THE OFFERING PRICE OF A MOTOR VEHICLE AND PROVISIONS OF THE FRANCHISE ACT GOVERNING AGREEMENTS BETWEEN AUTOMOBILE MANUFACTURERS OR DISTRIBUTORS AND AUTOMOBILE DEALERS.

2026 Regular Session

SB 412 regulates manufacturer-set vehicle prices and franchise agreements in Connecticut, balancing dealer independence against manufacturer control in automotive sales relationships.

FILE NO. 465
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Bill Summary · SB 412

Legislative bill overview

SB 412 modifies Connecticut's Franchise Act to regulate how automobile manufacturers and distributors set offering prices for motor vehicles and govern their contractual relationships with automobile dealers. The bill addresses the terms and conditions under which dealers can operate under manufacturer franchises, potentially affecting pricing transparency and dealer autonomy in the automotive sales market.

Why is this important

Automobile franchise agreements significantly impact vehicle pricing for consumers and profit margins for local dealerships. Changes to these regulations can influence dealer profitability, market competition, and ultimately vehicle prices and availability in Connecticut's automotive market. This also affects the balance of power between large manufacturers and smaller independent dealer networks.

Potential points of contention

  • Manufacturer control vs. dealer independence: Whether manufacturers should have authority to dictate offering prices or if dealers need more autonomy to set competitive prices in their local markets
  • Consumer pricing implications: Regulations that restrict pricing flexibility could either protect consumers from predatory markup or limit price competition that benefits buyers
  • Small business impact: Independent dealers may benefit from protections against manufacturer overreach, but manufacturers may argue restrictions reduce their operational efficiency and increase costs

Compiled from official sources — confirm details with the bill’s official record.

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