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S 812

An Act relative to motor vehicle service contracts

194th Legislature (2025-2026) Introduced by Jake Oliveira

S 812 regulates motor vehicle service contracts through licensing requirements, disclosure standards, and consumer refund protections to reduce predatory sales practices.

Bill reported favorably by committee and referred to the committee on Senate Ways and Means
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Bill Summary · S 812

Legislative bill overview

S 812 establishes new regulations and consumer protections for motor vehicle service contracts (extended warranties and maintenance plans) sold in Massachusetts. The bill sets standards for contract terms, disclosures, refund policies, and seller licensing requirements to protect consumers from predatory practices in the service contract market.

Why is this important

Motor vehicle service contracts are frequently sold at dealerships and by third-party vendors, often with unclear terms, hidden fees, and limited recourse for consumers. Massachusetts currently has minimal oversight of this market, leaving buyers vulnerable to expensive, worthless, or difficult-to-enforce contracts. Stronger regulations could save consumers hundreds of dollars and establish clear legal remedies when disputes arise.

Potential points of contention

  • Industry costs: Dealers and service contract companies argue compliance expenses will increase prices for consumers or reduce contract availability
  • Refund requirements: Mandated refund policies (likely full or pro-rata) could significantly impact seller profitability and may face pushback from the service contract industry
  • Regulatory burden: New licensing and disclosure requirements create administrative complexity; debate over whether oversight should fall to the Division of Insurance or another agency

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

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