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Auto franchise bill stalls after hours of debate over digital-platform definition, cybersecurity and special tools

TRANSPORTATION, TECHNOLOGY & LEGISLATIVE AFFAIRS - SENATE · April 22, 2021
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Summary

A measure to update Arkansas' motor-vehicle franchise law, including a new "digital platform" definition and vendor-choice provisions, failed in committee after dealers, manufacturers and lawmakers debated cybersecurity, special tools and whether the bill would hamper data protections.

A proposed rewrite of Arkansas’ Motor Vehicle Franchise Act involving digital platforms and dealer rights failed to pass the Senate Transportation, Technology & Legislative Affairs committee after extended testimony from dealers and automobile manufacturers.

Representative Jeff Wardlaw presented what he characterized as cleanup and modernization to let dealers control dealer-owned digital assets and to prevent manufacturers from unduly restricting dealer websites and sales opportunities. He said the bill is intended to help small, rural dealers that cannot meet high inventory thresholds imposed through some manufacturer digital…

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