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HD 1834

An Act relative to motor vehicle service contracts

194th Legislature (2025-2026) Introduced by Dan Donahue and 1 co-sponsor

Massachusetts bill establishing consumer protections, disclosure standards, and cancellation rights for motor vehicle service contracts to prevent deceptive dealer practices.

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WeVote Research Nonpartisan
Bill Summary · HD 1834

Legislative bill overview

HD 1834 regulates motor vehicle service contracts (extended warranties) in Massachusetts by establishing consumer protections, disclosure requirements, and standards for how these contracts are sold and administered. The bill sets rules for contract terms, cancellation rights, and the handling of service contract funds by sellers and administrators.

Why this is important

Motor vehicle service contracts are a significant financial product that many consumers purchase with their vehicles, often at the point of sale when they're least equipped to evaluate terms. Clear regulations protect consumers from deceptive practices, hidden fees, and non-performance by contract administrators, while also providing clarity for legitimate businesses in the market.

Potential points of contention

  • Consumer vs. Industry Balance: Dealers and service contract administrators may argue that stringent regulations increase compliance costs and reduce profit margins, while consumer advocates may contend protections don't go far enough
  • Cancellation and Refund Provisions: Disputes likely center on how lenient cancellation windows should be and how refunds are calculated—consumers want easy exits, businesses want to recoup administrative costs
  • Disclosure Requirements: The specificity and accessibility of required disclosures affect consumer understanding but impose administrative burdens on sellers; defining "clear" language is inherently contentious

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

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