What's happening
This bill requires automobile manufacturers to notify consumers and dealers about warranty adjustment programs and reimburse eligible consumers for certain repairs.
Why it matters
Increases transparency and consumer awareness. By requiring manufacturers to notify both consumers and dealers about new warranty adjustment programs, the bill ensures car owners are informed about expanded coverage or repair reimbursement opportunities that they might not otherwise know exist.
Creates new reimbursement rights for consumers. If a consumer pays for repairs before learning about an applicable adjustment program, the manufacturer must reimburse them (if eligible) as long as a claim is made within two years, ensuring consumers aren’t penalized for a lack of timely information.
Establishes enforceable standards and penalties. Failure by manufacturers or dealers to comply with these notification and disclosure requirements is deemed a deceptive business practice, giving consumers additional legal tools to hold companies accountable.
Mandates clear dealer notifications and public access. Dealers must proactively disclose adjustment programs and post information on how to access relevant service bulletins, making it easier for consumers to discover potential repair coverage and stay informed about their rights.
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Who cares
Headline styles
Require Extended Warranty Info
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Car Warranty Info
In Assembly Committee · Consumer Affairs And Protection · Sponsor David Buchwald
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2756
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to automobile manufacturers' warranty adjustment programs
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 198-d to read as follows:
§ 198-d. Automobile manufacturers' warranty adjustment programs. (a) For the purposes of this section:
(1) "Consumer" means the purchaser, other than for purposes of resale, of a motor vehicle, a lessee of a motor vehicle, any person to whom such motor vehicle is transferred during the duration of an express warranty applicable to such motor vehicle and any person entitled by the terms of such warranty to enforce the obligations of the warranty.
(2) "Dealer" means any person selling or agreeing to sell, leasing or agreeing to lease in this state one or more motor vehicles under a retail agreement with a manufacturer, manufacturer branch, distributor or distributor branch, or agent of any of them.
(3) "Lessee" means any consumer who leases a motor vehicle pursuant to a written lease which provides that the lessee is responsible for repairs to such motor vehicles.
(4) "Adjustment program" means any program or policy that expands or extends the consumer's warranty beyond its stated limit or under which a manufacturer offers to pay for all or any part of the cost of repairing, or to reimburse consumers for all or any part of the cost of repairing, any condition that may substantially affect vehicle durability, reliability or performance, other than service provided under a safety or emission-related recall campaign. This term does not include adjustments made by a manufacturer on a case by case basis.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00698-01-9
S. 2756 2
(5) "Manufacturer" means (i) any person who manufactures or assembles new motor vehicles for sale or distribution or (ii) any person who is engaged in the business of importing new motor vehicles for sale or distribution to dealers or through distributors, or factory branches.
(6) "Motor vehicle" means a motor vehicle excluding off-road vehicles, which was subject to a manufacturer's express warranty at the time of original delivery and either (i) was purchased, leased or transferred in this state within either the first eighteen thousand miles of operation or two years from the date of original delivery, whichever is earlier, or (ii) is registered in this state.
(7) "Off-road vehicle" means any self-propelled vehicle which is manufactured for sale for operation primarily on off-highway trails or offhighway competitions and only incidentally operated on public highways provided that such vehicle does not exceed seventy inches in width or one thousand pounds dry weight.
(8) "Service bulletin" means any document issued by a manufacturer pertaining to any adjustment program.
(b) (1) A manufacturer shall, within ninety days of the adoption of an adjustment program, notify, by first-class mail, all consumers eligible under such program of the condition in the motor vehicle which is covered by an adjustment program and the principal terms and conditions of the adjustment program.
(2) Within thirty days of the adoption of any new adjustment program, a manufacturer shall notify its dealers, in writing, of all the terms and conditions thereof.
(3) Copies of all notices mailed in accordance with this subdivision shall be sent to the department of state and the department of motor vehicles and made available for public inquiries.
(c) Each manufacturer either directly or through its authorized agent shall cause to be given to the original purchaser of a new motor vehicle, at the time of purchase, a notice outlining the provisions of this section and the rights and remedies provided under this section. The written notice shall be deemed sufficient if done in substantially the following form:
"Sometimes (insert manufacturer's name) offers a special adjustment program to pay all or part of the cost of certain repairs beyond the terms of the warranty. Check with your dealer to determine whether any adjustment program is applicable to your motor vehicle."
(d) (1) A dealer shall disclose to a consumer seeking repairs for a particular condition at its repair shop, the principal terms and conditions of the manufacturer's adjustment program covering such condition if the dealer has received a service bulletin concerning such adjustment program or otherwise has knowledge of it.
(2) A dealer shall provide notice to prospective purchasers and lessees that provides information on how to get copies of service bulletins. Nothing in this notice shall be construed as an admission by the dealer or manufacturer of the existence or nonexistence of a vehicle defect. The notice shall be deemed sufficient if posted in the showroom or other area conspicuous to motor vehicle purchasers and written in the following form:
FEDERAL LAW REQUIRES MANUFACTURERS TO FURNISH THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH BULLETINS DESCRIBING ANY DEFECTS IN THEIR VEHICLES.
YOU MAY OBTAIN COPIES OF THESE BULLETINS, FOR A FEE, FROM EITHER OF THE FOLLOWING:
THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER); OR
S. 2756 3
N.H.T.S.A.--TECHNICAL REFERENCE DIVISION (insert the current mailing address and telephone number established by the national highway traffic safety administration for receiving requests for service bulletins).
IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH THESE BULLETINS
AND SOME COMPANIES WILL SEND THEM TO YOU, FOR A FEE.
Such sign shall be printed with lettering that is legible and shall be at least three-quarters of an inch boldface type.
(e) A manufacturer who establishes an adjustment program shall implement procedures to assure reimbursement of each consumer eligible under an adjustment program who incurs expenses for repair of a condition subject to the program prior to acquiring knowledge of the program. Such reimbursement shall be consistent with the terms and conditions of the particular program.
Any claim for reimbursement under this subdivision shall be made in writing to the manufacturer within two years of the date of the consumer's payment for repair of the condition. The manufacturer shall notify the consumer within twenty-one business days of receiving a claim for reimbursement whether the claim will be allowed or denied. If the claim is denied, the specific reasons for the denial shall be stated in writing.
(f) A violation of any of the provisions of this section shall be deemed a deceptive act or practice under article twenty-two-A of this chapter.
(g) Nothing in this section shall be construed to exclude, modify, or otherwise limit any other remedy provided by law to a consumer or lessee.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to automobile manufacturers' warranty adjustment programs
Purpose
The purpose of this bill is to ensure that consumers are made aware of warranty adjustment programs implemented by automobile manufacturers.
Summary of provisions
This bill would require automobile manufacturers to establish a proce- dure whereby a consumer: (1) shall be informed of any warranty adjust- ment program applicable to his or her motor vehicle; and (2) shall be entitled to receive a copy of any service bulletin upon request. Manufacturers would also be required to implement procedures to assure reimbursement of each consumer eligible under an adjustment program who incurs expenses for repair of a condition subject to the program prior to acquiring knowledge of the program.
The bill would also:
-require dealers to cost a notice regarding the availability of service bulletins from the NHTSA;
-require manufactures to send bulletin terms and conditions to dealers within thirty days of adoption; and
-require manufacturers to provide copies of service bulletins to the Department of State and the Department of Motor Vehicles for public inspection.
Justification
Currently, a consumer of a new motor vehicle is provided with basic warranty information at the time of delivery. The information provided is a broad-based explanation of coverage for the vehicle generally warranted for a specific period of months and/or mileage and contains limitations as well.
Most manufacturers, however, periodically issue "service bulletins" or "adjustment programs" for particular makes or models of automobiles. These programs contain warranty-related repairs and an indication that the parts and/or services needed to correct the situation will be finan- cially compensated by the manufacturer and therefore extend coverage beyond the original warranty period for certain components. Except in the matter of issues or adjustments related to consumer safety, many of these service bulletins and adjustment programs are handled as internal documentation, and the consumer is not directly notified. Since the consumer is not notified, he or she may end up paying for the repair if they bring their automobile to an independent mechanic.
This bill would require automobile manufacturers to provide directly, or through affiliated dealerships, the original purchaser or lessee with information about parts or warranty coverage that would extend coverage beyond the original expressed warranty expiration date. Similar legis- lation has been enacted in at least five other states.
Fiscal impact on the state
None.
Fiscal impact on localities
None.
Impact on the regulation of businesses and individuals
Automobile manufacturers would be required to provide consumers notice of various adjustments to their warranty programs.
Impact on fines, imprisonment, forfeiture of rights, or other penal sanctions
A violation of this section shall be deemed a deceptive act or practice as defined in Article 22-A of the General Business Law and is subject to the applicable penalties under that Article.
Prior legislative history
S 8627 COMRIE Same as A 8132 Buchwald (MS)
Effective date
This act shall take effect on the one hundredth twentieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.