New York passes legislation to prohibit certain in-vehicle subscriptions
The New York legislature has passed a bill that would prohibit subscription fees on certain in-vehicle functions.
If signed by Gov. Kathy Hochul, Assembly Bill A1095 would prevent manufacturers, dealers, or their agents from offering consumer subscriptions that:
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- Utilize components and hardware already installed on the vehicle at the time of purchase or lease;
- Function after activation without ongoing cost to or support by the dealer, manufacturer, or any third-party service provider; and
It wouldn’t apply to navigation system updates, infotainment features, satellite radio, in-vehicle Wi-Fi, telematics services, roadside assistance, software-dependent driver assistance or driver automation features, or vehicle-connected services that rely on cellular or other data networks for continued operation, nor software updates as long as they don’t carry a fee.
Any manufacturer, dealer, or agent of a manufacturer or dealer that fails to comply with the requirements will be assessed a civil penalty of up to $250 per point of sale for each violation.
Sen. James Skoufis (D-District 42), sponsor of the companion bill, told WRGB Albany he views subscription services as corporate nickel-and-diming, turning safety into a luxury.
“If the automaker is building a feature into a car, for as long as cars have been invented, you’ve never had to pay a subscription to access those features,” Skoufis said.
The effective date is 90 days after the bill is enacted.
LexisNexis reported last year that 76% of respondents who were offered a free connected services trial declined it due to a perceived lack of benefit or value. It also found that nearly half of owners enrolled in connected services use OEM apps on a weekly basis.
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