Assembly bans subscription fees for built-in vehicle features, makes Department of State regulator

The Assembly passed a bill prohibiting automakers and dealers from charging subscription or recurring fees for vehicle components that are physically installed on a car at the time of sale.

"This bill prohibits car manufacturers from charging a fee for use of components already installed on the vehicle at the time of purchase," sponsor Mister Magnarelli said on the floor, describing the measure as a consumer-protection response to emerging pricing models.

Floor debate clarified scope. The bill targets factory-installed features (sponsors and questioners used heated seats as an example) and does not bar subscription payments for services that are not physically part of the vehicle such as satellite radio, connected navigation updates, or Wi‑Fi. The sponsor said a one-time activation fee included in the purchase price is permitted; the prohibition is aimed at ongoing subscription fees for built-in capabilities.

Members referenced automakers' current pricing experiments: the sponsor cited examples such as Ford’s BlueCruise and GM’s Super Cruise fees and high-profile subscription pricing for certain automaker software packages. The bill identifies the Department of State for rulemaking and enforcement after a previous veto message raised concerns about which agency would regulate the market.

One supporter said on the floor that the idea of paying monthly for heated seats is "laughable," adding that the change strengthens consumer protections. The clerk read the final section; the act will take effect on the ninetieth day after enactment. The clerk recorded the vote: Ayes 139, Nays 2. The bill passed.