American Car Competitiveness Act
The American Car Competitiveness Act enables American car manufacturers to sell vehicles directly to consumers, enhancing competition and consumer choice while maintaining robust protections and state revenue neutrality. This Act supports innovation, strengthens the competitiveness of American automobile manufacturers against foreign imports, and protects consumer interests.
Key Provisions
Direct Sales Authorization: Grants American manufacturers the ability to sell vehicles directly to consumers, bypassing franchised dealerships, with streamlined licensing requirements.
Consumer Protections: Mandates transparent pricing, equivalent warranties and service guarantees, accessible service centers, and a 7-14 day return policy for directly sold vehicles.
Revenue Neutrality: Ensures adherence to state tax laws and parity in licensing and registration fees with traditional dealership sales.
Regulatory Oversight: Empowers state motor vehicle authorities to monitor compliance, handle complaints, and impose fines or suspend licenses for violations.
Annual Reporting: Requires manufacturers to report direct sales data, pricing practices, and consumer complaints to ensure accountability.
Model Language
Section 1. Short Title: This Act may be cited as the “American Car Competitiveness Act.”
Section 2. Findings and Purpose
(a) Findings:
The United States is home to some of the most innovative and high-quality automobile manufacturers in the world.
Current state laws in many jurisdictions limit the ability of car manufacturers to sell directly to consumers, requiring sales through franchised dealerships.
These restrictions place American car manufacturers at a competitive disadvantage compared to foreign automakers that operate under less restrictive sales models.
(b) Purpose: To empower American automobile manufacturers to sell vehicles directly to consumers, ensuring they can compete effectively with foreign imports and enhance consumer choice.
Section 3. Definitions
Manufacturer Direct Sales: The sale of a vehicle directly from the manufacturer to the consumer, without the use of a franchised dealership.
American Automobile Manufacturer: A vehicle manufacturer headquartered in the United States or producing a majority of its vehicles within the United States.
Consumer: An individual or entity purchasing a vehicle for personal or commercial use.
Section 4. Direct Sales Authorization
(a) Permitting Direct Sales:
American automobile manufacturers are authorized to sell their vehicles directly to consumers within the state.
Direct sales must comply with existing consumer protection laws and regulations, including warranty and safety standards.
(b) Licensing Requirements:
American automobile manufacturers engaging in direct sales must obtain a direct sales license from the state motor vehicle regulatory authority.
The licensing process shall not impose additional burdens beyond those required for traditional franchised dealerships.
Section 5. Consumer Protections
(a) Transparency in Pricing: Manufacturers must display clear and transparent pricing for all vehicles sold directly to consumers, including applicable taxes and fees.
(b) Warranty and Service:
Directly sold vehicles must include the same warranties and service guarantees as those sold through franchised dealerships.
Manufacturers must maintain a network of authorized service centers to ensure consumers have access to repairs and maintenance.
(c) Return and Refund Policies: Directly sold vehicles must include a minimum return period of [7-14 days], allowing consumers to return vehicles for a full refund, subject to reasonable conditions.
Section 6. Tax and Revenue Neutrality
(a) State Revenue Protection: Direct sales must ensure compliance with state sales tax laws to prevent any revenue loss to the state.
(b) Fee Parity: Licensing and registration fees for directly sold vehicles shall be identical to those for vehicles sold through traditional dealerships.
Section 7. Regulatory Oversight and Reporting
(a) Oversight Authority: The [State Motor Vehicle Regulatory Authority] shall oversee compliance with this Act and investigate complaints related to direct sales.
(b) Annual Reporting: Manufacturers participating in direct sales shall submit annual reports detailing the number of vehicles sold directly, pricing practices, and consumer complaints.
Section 8. Penalties for Non-Compliance
(a) Civil Penalties:
Manufacturers failing to comply with the requirements of this Act may face fines of up to $50,000 per violation.
Repeat violations may result in suspension or revocation of the direct sales license.
(b) Consumer Remedies: Consumers adversely affected by non-compliance may file complaints with the regulatory authority and seek restitution.
Section 9. Severability: If any provision of this Act is held invalid, the remaining provisions shall remain in full force and effect.
Section 10. Effective Date: This Act shall take effect 180 days after passage.