Gov. Josh Shapiro is pictured before a recent event speaking with Sen. Marty Flynn, D-Scanton. Scranton is circulating a co-sponsorship memorandum for legislation it is drafting that would prohibit manufacturers from charging a monthly fee for features such as heated seats.
It may not be going anywhere, but at least one member of the state legislature wants to prevent automakers from charging for features that, in the past, were free.
Sen. Marty Flynn, D-Scranton, is circulating a co-sponsorship memorandum for legislation he is drafting that would prohibit manufacturers from charging a monthly fee for features such as heated seats. A similar bill has been introduced in the New Jersey state legislature, where it passed two legislative committees before being amended in January.
BMW began selling a subscription for heated seats in its new cars in 2020, when the company also announced that its cars’ operating system will allow microtransactions with features like automatic high beams and adaptive cruise control. BMW also offers heated steering wheels, the option to record footage from a car’s cameras, and the ability to play engine sounds in a car, each for a one-time or monthly fee.
“A new and troubling trend that automakers have begun to contemplate, and in some cases implement, is to apply this subscription-based model to hardware features that are already present in a vehicle.” Flynn wrote in his legislative memorandum. “For example, outside the United States, BMW started a program that required subscriptions for heated seats. Vehicles already had all the necessary equipment installed at the time of purchase, but consumers were forced to pay an additional, recurring cost to enable and use this feature in their vehicles. This may be good for the business bottom line, but it’s bad for consumers.”
Mercedes is offering a $1,200 upgrade that will add more horsepower to some of its newer vehicles, though the upgrade isn’t a bigger engine. Paying extra simply unlocks 20% to 24% of the extra power already in your existing engine package.
Flynn’s legislation would not apply to all add-ons, such as SiriusXM.
“I intend to introduce legislation that would prohibit car dealers and manufacturers from offering subscription services for motor vehicle features that are already fitted to the vehicle at the time of purchase or lease.” Flynn wrote. “This legislation would not apply to functions that require ongoing expenses for the distributor, manufacturer, or third-party service provider, nor would it apply to any third-party services. Violation of the provisions of the legislation would result in a civil penalty of $5,000 for each case”.
According to an April 2022 Cox Automotive survey, three-quarters of consumers surveyed don’t want to pay an annual or monthly subscription fee, preferring to pay upfront for the features or services they want. This specifically applied to safety and comfort features such as heated and cooled seats and remote start. Survey respondents also favored keeping safety features like lane-keeping assist and automatic emergency braking as part of the initial purchase price.
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