Lately, subscription features like paying for heated seats and remote start have been seen as a way for automakers to look forward to generating revenue. Two state legislatures in the US have proposed a bill that would ban such car subscriptions as parts or hardware installed with the purchase of any motor vehicle features. It includes a pre-installed heating element in the seat, which is clearly indicated.
Image Credits – Perth Now
The subscription is illegal only if there is no “ongoing cost to the distributor, manufacturer or any third party service provider”. In other words, if a car maker or other related party can prove that it will spend money to maintain the feature and/or service in question, it is legally permissible. This includes services like OnStar and the like. The key here will be the way in which “expenditure in progress” is interpreted, assuming the bill makes it legal. This, obviously, is not guaranteed.
In theory, a car company could claim that over-the-air updates and their associated data costs are an ongoing expense. That means that anything related to connected properties can theoretically be split. Since a car needs an internet connection to buy subscriptions, well, this particular piece of legislation might make it worthless. On the other hand, if the main value of the subscription is derived from the pre-installed hardware as opposed to the data connection itself, there may be an issue.
Automatic features
In addition to heated seats, the bill also mentions “driver assistance.” That could be a problem for systems like Tesla’s autopilot or General Motors’ Super Cruise, both of which are moving toward a subscription model. Both of these systems cost money to maintain, however, especially Super Cruise. It requires the system to scan active highways with lidar. Tesla’s AutoPilot and “Full Self-Driving” are also actively updated and maintained, which costs money.
According to law firm Ballard Spahr, “the bill would have a significant impact on the ability of automakers to offer consumers the option to purchase additional convenience features through a subscription model.” Similarly, there are potential civil penalties of up to $20,000 per violation. It’s not clear if that means by subscription or by vehicle. It seems more likely with each vehicle. Whether this becomes law or not, it’s good to see people in power pushing for something that many consumers strongly dislike. If there is hardware that comes with your car, you don’t have to pay extra to use it.
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