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Bill

S 9348

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

New York bans post-sale subscription fees for built-in vehicle features that work without ongoing payments, with limited exceptions for connected services and safety updates.

SUBSTITUTED BY A10411A
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WeVote Research Nonpartisan
Bill Summary · S 9348

Summary of Bill S. 9348-A (2025-2026, New York)

Purpose and intent

S. 9348-A prohibits motor vehicle manufacturers, dealers, and their agents from charging consumers a subscription fee for certain features of a motor vehicle after the vehicle has been sold or leased. The aim is to prevent ongoing recurring charges for features that are already installed and would function without ongoing support or payment, thereby protecting consumers from post-sale subscription fees for built-in vehicle capabilities.

Key provisions and changes

  • New Section Created: Adds General Business Law § 198-d (Vehicle feature subscriptions).
  • Definitions (section 198-d(a)):
    • Consumer: The purchaser or lessee of a motor vehicle, excluding resale.
    • Dealer: As defined by relevant vehicle law.
    • Manufacturer: Person or business involved in manufacturing or assembling new motor vehicles.
    • Motor vehicle feature: Any convenience or safety function included on the vehicle (e.g., heated seats) that is typically offered as an upgrade at purchase or lease.
    • Subscription service: A recurring payment for a service, such as weekly, monthly, or annual charges, excluding payments tied to a retail installment or lease contract.
  • Prohibited practice (section 198-d(b)):
    • Manufacturers, dealers, or their agents may not offer a subscription service for a feature that: 1) Uses components/hardware already installed at the time of purchase/lease, and 2) Would function after activation without ongoing cost or support from the dealer, manufacturer, or third-party.
  • Exceptions and limitations (section 198-d(c)):
    • The ban does not apply to:
    • Navigation systems, infotainment, satellite radio, in-vehicle Wi-Fi, telematics, roadside assistance, software-dependent driver-assistance or automation features, or vehicle-connected services relying on cellular or data networks for continued operation.
    • Software updates that do not involve charging the consumer for a remedy required to be provided cost-free for safety-related defects under U.S. law (specifically referencing federally required free updates for safety-related issues).
  • Enforcement (section 198-d(d)):
    • Violators (manufacturers, dealers, or their agents) face a civil penalty up to $250 per point of sale for each violation.
  • Regulatory authority (section 198-d(e)):
    • New York State Department of State is authorized to promulgate rules and regulations to implement and enforce the act.
  • Effective date (section 2):
    • The act takes effect 90 days after becoming law, with immediate authority to promulgate necessary implementing rules before or on that date.

Who is affected

  • Primary targets: Motor vehicle manufacturers and motor vehicle dealers (and their agents) operating in New York.
  • Consumers protected: Buyers and lessees of new motor vehicles who would otherwise be subject to post-sale subscription charges for certain features.
  • Regulatory body: New York Department of State, which would issue rules and oversee enforcement.

Procedural and timeline aspects

  • Legislative path: Introduced and referred to the Senate Consumer Protection committee, with subsequent amendments and committee re-reports. The bill has advanced through readings and committee actions (as of the provided history) and was substituted to A10411A, reflecting amendments.
  • Effective date: 90 days after enactment, with transitional rulemaking authority granted to the Department of State concurrent with or prior to the effective date.

Potential impact and considerations

  • Consumer protection: Reduces ongoing post-sale revenue opportunities for manufacturers and dealers tied to vehicle features already installed or capable of functioning without ongoing payments.
  • Business model considerations: Could affect pricing strategies for optional features and subscription-based services, pushing values toward upfront purchase or bundled offerings rather than recurring fees for certain built-in functionalities.
  • Scope and precision: The act allows ongoing charges for certain connected services and updates, preserving revenue for services dependent on data networks and safety-related software updates mandated to be provided at no cost. This narrows the prohibition to non-essential/features that can run without ongoing payments and excludes many connected services.
  • Enforcement: Penalties are capped at $250 per point of sale per violation, which provides a potential deterrent but may be modest relative to the scale of some dealerships or manufacturers.

If you’d like, I can compare this bill to similar enacted laws or summarize potential impacts on specific vehicle feature categories (e.g., heated seats, telematics, in-vehicle Wi-Fi).

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

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