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Bill

H 406

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

194th Legislature (2025-2026) Introduced by Dan Hunt

Massachusetts bill regulating motor vehicle dealer-manufacturer relationships to strengthen dealer protections and fair competition practices in automotive sales and service.

Accompanied a new draft, see H4980
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Bill Summary · H 406

Legislative bill overview

H 406 is a Massachusetts bill that seeks to further regulate the business relationships and practices between motor vehicle dealers, manufacturers, and distributors. The bill was introduced by Rep. Dan Hunt and is currently under review by the Consumer Protection and Professional Licensure committee, with a hearing scheduled for October 14, 2025.

Why is this important

Motor vehicle dealer regulations directly affect consumer protections, fair competition in the automotive market, and the ability of independent dealers to operate profitably. Changes to manufacturer-dealer relationships can influence vehicle pricing, service quality, warranty practices, and ultimately what consumers pay for vehicles and repairs.

Potential points of contention

  • Manufacturer power imbalance: Dealers may argue that manufacturers have excessive control over inventory, pricing, and sales territories, while manufacturers contend that such controls ensure brand consistency and quality standards
  • Independent dealer protections: The bill likely addresses whether independent dealers need stronger legal protections against manufacturer overreach, with disagreement over whether such protections help or hinder market efficiency
  • Franchise agreement terms: Contested provisions may include dealer termination rights, minimum inventory requirements, service obligations, and exclusive territory agreements that benefit some parties while burdening others

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

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