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Dealers and consumer advocates back bill letting dealerships say online a lower showroom price may be available; manufacturers oppose
Summary
Proponents told the Economic Matters Committee that Senate Bill 834 would allow Maryland car dealers to say on their websites that a lower price may be available in the showroom despite manufacturers’ minimum advertised price rules; automakers urged an unfavorable report, saying the change would undermine cooperative advertising programs.
Proponents of Senate Bill 834 told the Economic Matters Committee that modest website disclosures would improve price transparency for car buyers and help dealers who compete on price. Franz Schneiderman of Consumer Auto Maryland and Rob Smith, president of Fitzgerald Automalls, testified that manufacturers’ minimum advertised price (MAP) or minimum allowable advertised price (MAAP) restrictions often force dealers to display online prices that are $1,000 to $1,500 higher than actual transaction prices available on the showroom floor.
"This bill is about transparency and price competition and access to better information about…
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