Maryland Moving to Tighten Price Advertising

Maryland Moving to Tighten Price Advertising

[I]Lemon Law Manufacturer Warranty Likely to be Extended[/I]

The Maryland House of Delegates has approved legislation that would limit franchise auto dealers and other retailers of new and used vehicles to show only the full delivered purchase price of a vehicle and that this price be stated in the largest type used to provide any information related to the price of the vehicle.

The measure, HB 547, defines the full delivered purchase price as the price of the vehicle less taxes, fees and typical charges like transportation and dealer processing fees. The legislation is now moving its way through the Maryland Senate (SB 859) and is expected to be signed by Governor OMalley and likely become effective October 2009.

A WANADA analysis of the measure indicates the requirements are very similar to current Motor Vehicle Administration regulations regarding price advertising.

Also working its way through the Maryland legislature is a measure (HB 121 and S 133), which will extend the manufacturers warranty in Lemon Law cases from the current 15,000 miles and 15 months to 18,000 miles and 24 months. This measure is expected to be signed by the Governor as well, though its impact on the franchise dealer body is insignificant.

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