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STATE OF MAINE
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IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-SIX
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S.P. 884 - L.D. 2179
An Act Regarding the Licensing of Online Used Car Dealers
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 29-A MRSA §958 is enacted to read:
§958. Online used car dealer licensure and regulation
1. Online used car dealer; definition. As used in this section, unless the context
otherwise indicates, "online used car dealer" means a licensed used motor vehicle dealer
that conducts sales exclusively through electronic or digital platforms and does not operate
a physical retail display location in this State. An online used car dealer may partner with
a service center or inspection station licensed in this State as required by law but may not
maintain an in-person sales lot.
2. Licensure and regulation. The bureau shall conduct a 2-year pilot program to
license and regulate online used car dealers operating under this section. The bureau may
license and regulate online used car dealers operating under this section.
3. Eligibility. To qualify for licensure as an online used car dealer, an applicant must:
A. Hold valid authority as a corporation or limited liability entity in good standing
with the Secretary of State;
B. Demonstrate motor vehicle sales in multiple jurisdictions within the United States;
C. Provide proof of a minimum of 100 annual motor vehicle sales; and
D. Meet all background check requirements established by the Secretary of State.
4. Application for license. The following provisions govern the application for a
license for an online used car dealer.
A. An online used car dealer shall apply for a license in accordance with the
requirements under section 901.
B. An online used car dealer is exempt from the established place of business
requirements set forth in sections 851 to 952 but may maintain a physical location in
this State. If an online used car dealer elects to establish or operate a physical office,
inspection station or repair facility in this State, that location must fully comply with
APPROVED
APRIL 3, 2026
BY GOVERNOR
CHAPTER
637
PUBLIC LAW
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all applicable dealer licensing standards and regulatory requirements in effect for used
car dealer licensees.
C. An online used car dealer shall file with the Secretary of State and maintain a surety
bond of $350,000.
D. The annual fee for an online used car dealer license is $500.
5. License requirements. Unless expressly modified by this section, an online used
car dealer is subject to and shall comply with all applicable laws, rules and regulations
governing the licensing and sale of new and used motor vehicles in this State.
6. Disclosure requirements. The following provisions govern online used car dealer
disclosures.
A. An online used car dealer is exempt from the physical display requirements set
forth in Title 10, sections 1474 and 1475. At the time of an electronic or digital display
on an electronic or digital platform, an online used car dealer shall provide a consumer
with a disclosure consistent with the requirements of Title 10, chapter 217 and the
Federal Trade Commission's Used Motor Vehicle Trade Regulation Rule in 16 Code
of Federal Regulations, Part 455.
B. A disclosure form authorized by this State must be provided to the purchaser at the
time of delivery to the purchaser, signed by the purchaser and retained by the online
used car dealer in compliance with the record-keeping requirements of Title 10, chapter
217.
7. Inspection requirements. The following provisions govern inspections of motor
vehicles under this section.
A. A motor vehicle sold by an online used car dealer must pass an inspection in this
State prior to sale. A reconstructable motor vehicle as defined in Title 10, section 1471,
subsection 6-A or an unsafe motor vehicle may not be sold by an online used car dealer.
B. A motor vehicle sold to a purchaser in this State must be inspected by an inspection
station licensed in this State prior to delivery to the purchaser and must display a valid
inspection sticker issued within 60 days of sale.
8. Inspection stations; repair facilities. The following provisions govern inspection
stations and repair facilities in relation to online used car dealers.
A. An online used car dealer may obtain a license for an inspection station in this State.
All standards governing inspection stations apply to such an inspection station.
B. An online used car dealer may partner with an inspection station in this State. The
partner inspection station must be included in the application for licensure and renewal.
The partnership must be set out in writing. Any changes to the partnership must be
immediately disclosed to the bureau.
C. The failure of an online used car dealer to obtain a license for an inspection station
in this State or to have a partner inspection station in this State is grounds for
suspension of a license issued pursuant to subsection 4.
D. An online used car dealer that does not maintain a repair facility in this State shall,
in writing, disclose to a vehicle purchaser the name, address and contact information
of a designated repair facility or a partner location authorized to perform required
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warranty service. The disclosure must be provided at or before the time of the vehicle
sale and included in the online used car dealer's warranty documentation.
9. Records. All sales and transaction records must be maintained in accordance with
section 956, may be kept electronically and must be produced within one business day upon
request of the Secretary of State, the Attorney General or a law enforcement officer.
10. Plates. An online used car dealer is not eligible for dealer plates. Temporary
plates issued by this State may be issued only for sales to purchasers in this State.
11. Contact information. An online used car dealer shall:
A. Provide a direct-access telephone number to a designated corporate representative
of the online used car dealer who is authorized to assist the bureau and the Office of
the Attorney General in resolving consumer complaints and inquiries and in obtaining
required records;
B. Provide written customer support contact information, including a toll-free
telephone number and electronic communication address, to each purchaser at the time
of sale; and
C. Maintain business hours at reasonable times during which a customer can contact
the online used car dealer.
12. Enforcement. The following provisions govern enforcement of this section.
A. An online used car dealer's failure to comply with the provisions of this section,
including inspection, disclosure, warranty obligations or record retention, constitutes
grounds for license suspension or revocation under section 903.
B. Breach of a consumer sales contract by an online used car dealer is expressly
grounds for administrative action, including license suspension or revocation under
section 903.
C. An online used car dealer shall designate an agent registered in this State to accept
service of process. The name and contact information of the registered agent must be
provided to the bureau.
13. Rulemaking. The Secretary of State may adopt rules to implement this section,
including licensing procedures, disclosure formats, inspection coordination and reporting
requirements. Rules adopted under this subsection are routine technical rules as defined in
Title 5, chapter 375, subchapter 2-A.
14. Repeal. This section is repealed December 31, 2028.
Sec. 2. Report. The Secretary of State shall submit a report to the joint standing
committee of the Legislature having jurisdiction over transportation matters no later than
January 15, 2028 evaluating the effectiveness, risks and consumer protection outcomes of
online used car dealer licensure and regulation established in the Maine Revised Statutes,
Title 29-A, section 958. The joint standing committee of the Legislature having jurisdiction
over transportation matters may report out legislation regarding the Secretary of State's
report to the Second Regular Session of the 133rd Legislature.