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Bill

SD 1295

An Act further regulating business practices between motor vehicle dealers, manufacturers, and distributors

194th Legislature (2025-2026) Introduced by Brendan Crighton

Massachusetts bill to regulate motor vehicle dealer-manufacturer business practices, protecting independent dealers from unfair franchise terms and contract disputes.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 1295

Legislative bill overview

SD 1295 seeks to regulate business relationships and practices between motor vehicle dealers, manufacturers, and distributors in Massachusetts. The bill addresses the balance of power in franchise agreements and commercial dealings within the automotive industry. Specific provisions would likely cover contract terms, dispute resolution, termination conditions, and fair dealing requirements.

Why is this important

Motor vehicle dealers operate under franchise agreements with manufacturers that heavily favor larger corporate entities, often leaving independent dealers vulnerable to unfair termination or one-sided contract modifications. This regulation could protect hundreds of Massachusetts dealerships and their employees while potentially affecting vehicle pricing and availability. The issue directly impacts consumer choice, local business viability, and economic competition in a significant state industry.

Potential points of contention

  • Manufacturer autonomy vs. dealer protection: Automakers may argue regulations infringe on their right to manage brand standards and distribution networks, while dealers contend they need legal protections against arbitrary actions
  • Compliance costs and pricing: Implementation could increase administrative burdens on manufacturers, potentially raising vehicle prices or reducing dealer profitability if passed too stringently
  • Scope ambiguity: The bill's current language is broad; stakeholders will debate whether it covers used-car dealers, electric vehicle startups with different models, or only traditional franchises

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

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