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Bill

S 5708

Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold

2025 Regular Session Introduced by James Skoufis

Prohibits motor vehicle manufacturers and dealers from charging post-sale subscriptions for certain connected-car features, shielding buyers from ongoing fees.

RETURNED TO SENATE
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WeVote Research Nonpartisan
Bill Summary · S 5708

Summary: Senate Bill S 5708

Overview

Senate Bill S 5708 would prohibit motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle has been sold. The intent appears to be to prevent ongoing, post-sale charges for features that are already installed or activated in the vehicle at purchase.

  • Bill Number: S 5708
  • Title: Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold
  • Status: RETURNED TO SENATE
  • Introduced: February 28, 2025
  • Classification: bill
  • Related companion(s): A 1095 (companion); S 8393 (prior-session)

Key Provisions (as described)

  • Prohibition on post-sale subscription charges: The bill would bar manufacturers and dealers from charging customers ongoing subscription fees for certain functions or features of a vehicle after the point of sale.
  • Scope: The prohibition applies specifically to motor vehicle manufacturers and dealers; the precise functions covered are described in the bill text (not provided here). The phrase “certain functions” suggests selective features (potentially connected-car or onboard services) but would be defined in the statute.
  • Post-sale focus: The restriction targets charges that occur after a vehicle has been sold to a consumer, not upfront costs or standard warranties (based on the bill’s stated purpose).

Note: The exact definitions, enforcement mechanisms, penalties, exemptions, and the list of covered functions would be found in the full text of the bill. This summary reflects the information available in the provided materials.

Affected Parties

  • Consumers: Potential relief from ongoing post-sale subscription fees for vehicle features.
  • Motor vehicle manufacturers: Must adjust business models to avoid post-sale subscription charges for the defined functions.
  • Vehicle dealers: Subject to the same prohibition as manufacturers when they engage in post-sale subscriptions.
  • Industry stakeholders and dealers associations: May need to adjust compliance practices and pricing schedules.

Procedural History and Timeline

  • 2025-02-28: Referred to Consumer Protection
  • 2025-05-19: 1st Report Calendar
  • 2025-05-20: 2nd Report Calendar
  • 2025-05-21: Advanced to Third Reading
  • 2025-06-11: Passed Senate; Delivered to Assembly; Referred to Codes
  • 2025-06-16: Substituted for A1095; Ordered to Third Reading Rules CAL.287
  • 2025-06-16: Passed Assembly
  • 2025-06-16: Returned to Senate
  • Current status indicates the bill is with the Senate after Assembly passage

Legislative Context

  • Related bills: S 8393 (prior-session), A 1095 (companion)
  • The companion bill A 1095 exists in the Assembly, and S 5708 has been advanced through the Senate with formal substitution and passage in the Assembly.

Potential Impact and Considerations

  • Consumer protection: Could reduce ongoing costs for vehicle owners by eliminating certain post-sale subscription fees.
  • Manufacturer/dealer business models: May require shifting revenue strategies away from post-sale digital services or recasting how features are monetized (e.g., bundled or included at no additional fee).
  • Implementation: The bill would necessitate clear definitions of which functions are covered, any exemptions (e.g., safety-critical features, safety-related updates), and enforcement details.
  • Timeline and compliance: If enacted, compliance timelines and transitional provisions would affect existing subscription agreements and customer contracts.

Notes

  • For a precise understanding of which vehicle functions are covered, definitions, enforcement, penalties, and any exemptions, consult the full legislative text of S 5708 and its companion A 1095. This summary reflects the information provided in the bill overview and legislative actions.

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

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