February 28, 2019 1 min read

Consumer Groups Support Maryland's Bill to Prohibit Automakers From Penalizing Dealers Who List the Actual Lowest Price Which They Are Willing To Sell a Vehicle

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The Consumer Federation of America and Maryland Consumer Rights Coalition testified before the Maryland House Committee on Economic Matters and Maryland Senate Committee on Judicial Proceedings, supporting HB 610/SB526. These bills would allow dealers to post and advertise the actual price at which they are willing to sell or lease a new car or truck. Manufacturers would no longer be allowed to retaliate against a dealer or deny the dealer the advertising and marketing funds they provide to their competitors who honor the minimum price the manufacturer seeks to establish. When one dealer starts to advertise low prices, below those set by the manufacturer, other dealers will see they have to compete to attract new customers, and consumers in Maryland will have multiple dealers actually competing for their business. Competition always leads to lower prices.

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