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H 5036

An Act requiring the disclosure of consumer information related to tariffs

194th Legislature (2025-2026) Introduced by Mindy Domb

Requires brands and retailers to disclose how tariffs raise prices, via labels on vehicles and tariff disclosures at point-of-sale and online for consumer goods.

Accompanied a study order, see H5453
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Bill Summary · H 5036

Bill Summary: H 5036 (Mass. 194th Gen Court) — Tariff Transparency in Retail Pricing

Purpose and Intent

An Act requiring the disclosure of consumer information related to tariffs. The bill aims to improve tariff transparency by mandating that manufacturers and retailers disclose how federal tariffs affect the price of motor vehicles and consumer goods, with enforceable penalties for noncompliance. It is presented as an emergency measure to ensure immediate tariff disclosures.

Key Provisions

1) Tariff Disclosure for New Motor Vehicles (Chapter 90 amendments)

  • Adds Section 64 to Chapter 90:
    • Defines terms: "Monroney label" (the standard price label on new cars), "Tariff," and "Tariff cost estimate" (an estimate of how tariffs increase the price of a vehicle, including inputs in manufacture or distribution).
    • Manufacturer duties:
    • When shipping a new motor vehicle to a Massachusetts dealer, manufacturers must affix a clear tariff cost estimate label to the vehicle. This can be on the Monroney label, a supplemental adjacent label, or posted on the manufacturer’s public website (to the extent allowed by federal law).
    • Dealers cannot remove or obscure the tariff cost estimate before sale.
    • Good-faith reliance: If estimating in good faith using supplier/import documentation, such estimates are not by themselves deemed unfair or deceptive under Chapter 93A.
    • Enforcement: The Attorney General enforces this section, with remedies including injunctive relief, civil penalties up to $1,000 per vehicle, and other legal relief. Each vehicle constitutes a separate violation.
    • Preemption: Provisions respect federal law; no content required by this section will be added if preempted.

2) New Chapter: Chapter 93M — Tariff Transparency in Retail Pricing

  • Establishes a separate framework for tariff disclosures in retail pricing (goods and services sold to consumers).
  • Key terms: "Consumer," "Retail establishment," "Retail price," "Tariff," and "Tariff portion" (the portion of the price attributable to tariffs).
  • Disclosure requirements:
    • Retail establishments must disclose the tariff portion as a dollar amount or percentage.
    • Required locations for disclosure:
    • Point-of-sale shelf tag or price display.
    • Online product page (close to the price).
    • Printed or electronic receipt (as a separate line item).
    • Online disclosures: A hyperlink labeled "Tariff cost" must open a notice detailing the tariff portion.
    • De minimis provision: If the tariff portion is less than 2% of price or less than $0.50, retailers may display "Tariff portion: de minimis."
  • Recordkeeping and verification:
    • Retailers must maintain documentation to substantiate the tariff portion (invoices, customs entries, tariff schedules, importer certifications, etc.).
    • Wholesalers/importers must provide tariff information to retailers upon request.
  • Enforcement and penalties:
    • AG may require production of records; violations are unfair or deceptive practices under 93A.
    • Civil penalties up to $500 per violation; injunctive relief and other 93A remedies available; each item may be a separate violation.
  • Exemptions:
    • Excludes retailers with less than $500,000 in annual gross revenue.
    • Allows exemptions for classes of commodities or establishments if compliance is impractical or burdensome.
  • Regulations:
    • AG to promulgate standards for calculating tariff portions and recordkeeping; preemption and federal law considerations apply.
  • Effective date:
    • Sections 1 and 2 take effect 60 days after passage.
    • AG may issue regulations before the effective date.

Affected Entities

  • Manufacturers of new motor vehicles sold in Massachusetts.
  • Auto dealers/distributors in Massachusetts.
  • Retail establishments that sell goods to Massachusetts consumers (both physical and online).
  • Wholesalers/importers supplying Massachusetts retailers.
  • Consumers in Massachusetts who pay prices influenced by federal tariffs.

Procedural and Timeline Highlights

  • Emergency status: Act is declared an emergency measure to ensure immediate implementation.
  • Effective timeline: Initial sections become law 60 days after passage; regulations can be issued beforehand by the Attorney General.
  • Enforcement: Attorney General has strong enforcement tools, including civil penalties and injunctive relief; each affected product or vehicle can count as a separate violation.
  • Operational burden: Retailers must implement price labeling, online disclosures, and robust recordkeeping systems. Manufacturers must coordinate label placement and potential website postings.

Observations

  • The bill blends motor vehicle-specific disclosures with a broader consumer goods tariff transparency regime.
  • It aligns with federal labeling concepts (Monroney) while introducing state-specific tariff transparency requirements.
  • Provisions include safeguards for federal preemption and practical exemptions to avoid undue burdens on small retailers.

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

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