Washington Code 46.96.196 – Practices by brand owner
Current as of: 2023 | Check for updates
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(1) Notwithstanding the terms of a franchise agreement, a brand owner shall not directly or indirectly:
Terms Used In Washington Code 46.96.196
- Contract: A legal written agreement that becomes binding when signed.
- person: may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual. See Washington Code 1.16.080
(a) Require a new motor vehicle dealer to offer a secondary product;
(b) Require a new motor vehicle dealer to provide a customer with a disclosure not otherwise required by law; or
(c) Prohibit a new motor vehicle dealer from offering a secondary product including, but not limited to:
(i) Service contracts;
(ii) Maintenance agreements;
(iii) Extended warranties;
(iv) Protection product guarantees;
(v) Guaranteed asset protection waivers;
(vi) Insurance;
(vii) Replacement parts;
(viii) Vehicle accessories;
(ix) Oil; or
(x) Supplies.
(2) It is not a violation of this section for a brand owner to offer an incentive program to new motor vehicle dealers to encourage them to sell or offer to sell a secondary product approved, endorsed, sponsored, or offered by the brand owner, provided the program does not provide vehicle sales or service incentives.
(3) It is not a violation of this section for a brand owner to prohibit a new motor vehicle dealer from using secondary products for any repair work paid for by the brand owner under the terms of a warranty, recall, service contract, extended warranty, maintenance plan, or certified preowned vehicle program established or offered by the brand owner.
(4) For the purposes of this section:
(a) “Brand owner” means a manufacturer, distributor, factory branch, factory representative, agent, officer, parent company, wholly or partially owned subsidiary, affiliate entity, or other person under common control with a factory, importer, or distributor.
(b) “Common control” has the same meaning as in RCW 48.31B.005.
(c) “Customer” means the retail purchaser of a vehicle or secondary product from a new motor vehicle dealer.
(d) “Original equipment manufacturer parts” means parts manufactured by or for a vehicle’s original manufacturer or its designee.
(e) “Secondary product” means all products that are not new motor vehicles or original equipment manufacturer parts.
[ 2020 c 174 § 1.]