ARLINGTON, VIRGINIA – ACI’s comprehensive analysis finds that the proposed Maryland bill, SB 968, could harm consumers through increased vehicle costs and stifle innovation within the automotive industry by redirecting manufacturers’ resources toward litigation instead of product and service development.

Read our full letter to the Maryland legislature here.

Key Points:

  • Opposition to SB 968: ACI opposes the bill due to its potential to unfairly benefit automobile dealer trade associations over consumers.
  • Impact on Consumer Costs: According to ACI’s findings, similar state laws have historically cost American car buyers $47.5 billion annually.
  • Needless Litigation: SB 968 is expected to lead to unnecessary lawsuits, creating conflict between manufacturers, dealers, and consumers, with the financial burden ultimately falling on the latter.
  • Inhibiting Industry Innovation: Diverting resources to manage increased litigation risks hampering manufacturers’ ability to reinvest in innovation, negatively affecting the overall quality and advancement of automotive products and services.
  • Consumer Welfare at Stake: When new car prices have significantly increased, SB 968 threatens to exacerbate the financial burden on consumers, prioritizing the interests of dealer associations over the needs of individual buyers.

Tirzah Duren, Vice President of Policy and Research at ACI, stated, “Our commitment at ACI is to foster policies that ensure lower costs, better access, and higher quality for consumer products. SB 968 stands in contrast to these objectives, threatening to impose additional costs on consumers and impede progress within the automotive sector.”

ACI urges lawmakers to consider SB 968’s broader impact on consumer welfare and the automotive industry. The organization remains dedicated to advocating for consumer interests and encouraging a legislative environment that promotes competition, innovation, and fair pricing.

For further details on ACI’s stance on SB 968 and other consumer advocacy efforts, please contact [email protected].

The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.