UNANIMOUS SUPPORT FROM AUTO DEALERS FOR NEW FRANCHISE LAW

Senator Cain sponsors bill to improve small biz bargaining power

AUGUSTA– Yesterday Democratic Senator Emily Cain of Orono introduced a measure to update the current laws regulating the car dealer-manufacturer franchise relationship and appropriately balance the bargaining power in the industry.

“Maine auto dealers are family-owned businesses and leaders in their communities, and they unanimously support this bill,” said Senator Cain. “This bill is about increasing protections for dealers and their customers by leveling the playing field in negotiations with manufacturers.”

This bill would rectify some of the imbalances of bargaining power between a dealer and a manufacturer and strengthen safeguards to protect consumers’ information from being shared with third parties.

Manufacturers and dealers exchange information daily, with manufactures often sharing consumer data with third parties. The bill protects the privacy of small auto dealers and ensures data that streams from the dealership belongs to the dealership and to its customer not to the manufacturer.

“The recent Target Breach and its far-reaching implications reminded many of the importance of adequate safeguards for consumer information,” said Senator Cain. “Additionally this bill requires that the manufacturer accept responsibility for a breach on its watch.”

The bill also protects auto dealers from unnecessary or economically unjustified renovations by requiring manufacturers to obtain an economic analysis to justify an expansion.

The Labor, Commerce, Research and Economic Development Committee will hold a work session on the bill, LD 1482 “An Act To Amend the Motor Vehicle Franchise Laws,”  later this session.

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