RELATING TO CONSUMER PROTECTION.

HB2462

HOUSE OF REPRESENTATIVES

H.B. NO.

2462

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to consumer protection
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The legislature finds that consumers have
traditionally understood the purchase or lease of a motor vehicle to include
ownership or use of the physical features and functions installed on that
vehicle at the time of sale.
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For
generations, when consumers paid for goods� such as appliances, tools, or
vehicles� they reasonably expected to own and use the included features without
being subject to ongoing fees.

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The legislature further finds that,
in recent years, manufacturers across multiple industries have increasingly
adopted business models that convert formerly owned goods into
subscription-based services.
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This practice
has expanded beyond the digital content and services into physical products,
including motor vehicles, where consumers are charged recurring fees to access
features that rely on hardware already installed in the product and for which
the consumer has already paid.
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The legislature finds that this
proliferation of post-sale subscription fees undermines consumer expectations,
erodes the concept of ownership, and shifts economic risk and cost onto
consumers without providing corresponding ongoing value.
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In the context of motor vehicles, these
practices can result in consumers paying repeatedly for basic convenience or
safety features� such as heated seats or other vehicle functions� that would
otherwise operate without any continuing cost or service.
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The legislature further finds that
these subscription-based restrictions are often not clearly disclosed at the
point of sale, leaving consumers unaware that features advertised as part of
the vehicle may be disabled or withheld unless additional recurring payments
are made.
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Such practices can be
misleading, reduce price transparency, and limit consumers' ability to make
informed purchasing decisions.

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The legislature recognizes that
while subscription services are appropriate and justified for features that
require ongoing data connectivity, third-party services, or continuous
operational support, it is neither fair nor reasonable to require consumers to
pay recurring fees for the use of hardware and functionality already installed
and fully capable of operating without ongoing cost.
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Accordingly, the purpose of this Act
is to protect consumers from unfair and deceptive subscription practices,
preserve reasonable expectations of ownership, promote transparency at the
point of sale, and ensure that consumers are not required to repeatedly pay for
features they have already purchased as part of their motor vehicle.
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SECTION 2.
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Chapter 481B, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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�481B-
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Vehicle feature subscriptions.
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(a)
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As used in this section:

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"Consumer" means the purchaser, or lessee,
other than for the purposes of resale, of a motor vehicle.

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"Dealer" shall have the same
meaning as such term is defined by section 437-1.1.

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"Manufacturer" means a person or
business engaged in the manufacturing or assembling of new motor vehicles.

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"Motor vehicle feature" means any
convenience or safety function included on the motor vehicle, including but not
limited to heated seats that typically is offered to a consumer as an upgrade
at the time of purchase or lease of the motor vehicle.

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"Subscription service" means
a service provided on a subscription basis in exchange for a recurring payment,
including, but not limited to, a weekly, monthly, or annual payment charged to
and made by a consumer but shall not include a consumer's reoccurring payment
made pursuant to a retail installment contract or lease contract for the
purchase or lease of a motor vehicle.

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(b)
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No manufacturer, dealer, or agent of a
manufacturer or dealer shall offer to a consumer a subscription service for any
motor vehicle feature that:

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(1)
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Utilizes
components and hardware already installed on the motor vehicle at the time of
purchase or lease by the consumer; and

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(2)
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Is capable of
functioning based solely on hardware and software already installed on the
motor vehicle at the time of purchase or lease, without reliance on external
data networks or third-party services.

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(c)
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The provisions of this section shall not:

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(1)
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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 continue operation; or

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(2)
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Be construed to
prohibit a dealer or manufacturer from providing any software update to the consumer,
provided the dealer or manufacturer does not charge the consumer a fee for any software
update remedying a safety-related defect that is required to be provided to the
consumer at no cost as required by title 49 Code of Federal Regulations section
573.6.

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(d)
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Penalties for a violation of this section
shall be assessed according to the following:

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(1)
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Any
manufacturer, dealer, or agent of a manufacturer or dealer that violates this
section shall be subject to a civil penalty or not less than $1,000 per
violation;

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(2)
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Each motor
vehicle sold or leased in violation of this section shall constitute a separate
violation;

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(3)
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For a second or
subsequent violation, the civil penalty shall be not less than $5,000;

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(4)
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Civil penalties
imposed under this section shall be in addition to any other remedies or
penalties available under law; and

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(5)
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In addition to
civil penalties, the enforcing authority may order restitution of any
subscription fees improperly charged to consumers.

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(e)
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The following disclosure requirements shall
apply to this section:

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(1)
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Prior to the
completion of a motor vehicle sale or lease, a manufacturer or dealer shall
provide the consumer with a clear and conspicuous written disclosure
identifying:

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(A)
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Each
motor vehicle feature included on the vehicle that requires a subscription
service for activation or continued use;

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(B)
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Whether
the feature relies on hardware already installed on the motor vehicle at the
time of purchase or lease;

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(C)
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The
cost of any required subscription service, including the amount and frequency
of recurring charges; and

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(D)
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Whether
the feature will be disabled, limited, or unavailable if the consumer does not
purchase or renew the subscription service;

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(2)
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The disclosure
required under this subsection shall be provided:

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(A)
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As
a standalone document separate from the retail installment contract or lease
agreement;

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(B)
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In
plain language in a font size and format reasonably calculated to be noticed
and understood by a consumer; and

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(C)
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Shall
also be included on the vehicle's window sticker or Monroney label, if
applicable; and

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(3)
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A manufacturer
or dealer shall not represent that a motor vehicle feature is included in the
purchase or lease price of the vehicle if the feature requires a subscription
service for activation or continued use, unless the disclosure required under
this subsection is provided.

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(4)
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Failure to
provide the disclosure required under this subsection shall constitute a
violation of this section and shall be subject to the civil penalties provided
in subsection (d).
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SECTION 2.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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SECTION 3.
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New statutory material is underscored.

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SECTION 4.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

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Report Title:

Consumer
Protection; Motor Vehicles; Subscriptions; Penalties

Description:

Prohibits
auto manufacturers and dealers from charging a post-sale subscription fee for
hardware that is already installed at the time of purchase.
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Establishes penalties and fines.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.