SB81: SB81 Motor Vehicle Franchise Practices; protection of consumer data in motor vehicle sales; provide

Georgia law already regulates the relationship between car dealers and the manufacturers or distributors that franchise them. This bill updates that law to focus on data. It sets rules for how a manufacturer, distributor, franchisor, or their affiliates can access consumer information generated at a dealership, requiring written consent, safeguards matching federal privacy law, and indemnification if data is misused. The bill also creates a brand new Code section covering 'dealer data systems,' the software platforms dealers use to store customer and business data. It requires vendors to offer secure data-sharing interfaces to outside integrators the dealer authorizes, bans unreasonable restrictions or hidden overcharges on that access, and requires secure data transfer if a dealer switches vendors. Separately, it adds new examples of unlawful conduct by franchisors, such as unfair vehicle allocation or unfair performance-based penalties, and clarifies what counts as 'new motor vehicle dealer' activity under a related licensing statute, including online reservation systems. The changes take effect once signed into law.

• Requires manufacturers, distributors, franchisors, and their affiliates to get a dealer's written consent before accessing consumer data directly from a dealer's data system.
• Creates a new law (proposed O.C.G.A. § 10-1-633) banning third parties from accessing, selling, or using a dealer's protected data without the dealer's prior written consent.
• Requires dealer data system vendors to provide a secure, standardized way ('secure open API') for dealer-authorized companies to connect to and use dealer data.
• Bans hidden or excessive 'data access overcharges' for connecting outside integrators to a dealer's data system.
• Adds new examples of unlawful conduct by franchisors, including unfair vehicle allocation practices and improperly denying incentive payments based on unfair performance criteria.
• Clarifies which online sales and reservation activities count as acting like a licensed new motor vehicle dealer under Georgia's dealer licensing law (O.C.G.A. § 40-2-39).

The bill affects Georgia's franchised new car dealers, vehicle manufacturers, distributors, and their affiliates, as well as third-party technology vendors that provide dealer management or data integration software. Consumers who buy or lease vehicles are affected indirectly through the data protections placed on their personal information.

Car buyers' personal and financial information moves through several companies during a purchase; this bill limits who can access that data and under what conditions. It also changes the balance of power between dealers and manufacturers over data and vehicle allocation, which can affect pricing, service, and how dealerships operate day to day.

• Section 2 rewrites O.C.G.A. § 10-1-632 to require franchisors, manufacturers, and distributors to get written consent before pulling consumer data from a dealer's system and to indemnify dealers for data misuse.
• Section 3 adds new O.C.G.A. § 10-1-633, defining 'protected dealer data,' 'authorized integrator,' and 'data access overcharge,' and banning unauthorized third-party access to dealer data.
• Section 3 requires dealer data systems vendors to maintain a 'secure open API' allowing authorized integrators to connect, with no unreasonable restrictions or excessive charges.
• Section 3 requires vendors and integrators to allow secure data transfer to a successor vendor within 90 days of contract termination notice.
• Section 4 amends O.C.G.A. § 10-1-641 to require compensation to dealers for assistance with remote vehicle updates or repairs performed at the dealership.
• Section 5 amends O.C.G.A. § 10-1-662 to add new unlawful franchisor practices, including unfair vehicle allocation and improper denial of incentive payments.
• Section 6 amends O.C.G.A. § 40-2-39 to specify which online sales, reservation, and deposit-taking activities count as regulated 'new motor vehicle dealer' activity.

1. 2025-05-14Effective Date 2025-07-01
2. 2025-05-14Act 282
3. 2025-05-14Senate Date Signed by Governor (Senate)
4. 2025-04-07Senate Sent to Governor (Senate)
5. 2025-03-13House Passed/Adopted (House)
6. 2025-03-13House Third Readers (House)
7. 2025-02-26House Committee Favorably Reported (House)
8. 2025-02-20House Second Readers (House)

• Matt Brass (R, SD-006)Primary sponsor
• Larry Walker (R, SD-020)
• Carden Summers (R, SD-013)
• John Kennedy (R, SD-018)
• Harold Jones (D, SD-022)
• Ed Harbison (D, SD-015)
• Alan Powell (R, HD-033)

1. PassedSenate voteFebruary 18, 2025

   52 yea, 1 nay (0 not voting, 3 absent)

   Passage By Substitute: Senate Vote #60

2. PassedHouse voteMarch 13, 2025

   165 yea, 5 nay (5 not voting, 5 absent)

   Passage: House Vote #274

• car dealership law
• consumer data privacy
• auto industry regulation
• motor vehicle franchises
• data security