Just in time for winter, state lawmakers are looking to protect New Jersey motorists from being charged special subscription fees to activate features like heated seats that may already be installed in their vehicles.

Under a bipartisan measure that cleared two committees in the Assembly recently, car manufacturers and car dealers would generally be prohibited from charging motorists in New Jersey a separate fee to use “components and hardware already installed on the motor vehicle.”

Bill sponsors say the measure is a response to concerns raised about special subscription fees as car manufacturers have been looking at ways to use developing technology to increase revenue.

Some have also pointed to published reports that indicated several months ago consumers in at least one foreign country were being charged a monthly fee totaling $18 by a car manufacturer for the right to activate the heated seats in their cars.

Assemblyman Kevin Rooney (R-Bergen) said charging such fees here would leave many car buyers feeling “cheated.”

“There’s no additional cost to most manufacturers and dealers for these options that already come with the vehicles,” said Rooney, a primary sponsor of the bill.

“(Car buyers) don’t want to pay twice for something they already own,” he said.

However, lawmakers have also heard testimony in recent weeks from industry representatives who suggested improving technologies could end up being a net positive for many consumers in the long run.

Using a subscription model, they note, means consumers would be saved from having to pay for more costly option packages or other add-ons that may include only one or two features they actually need.

“Consumers would be able to pick and choose which features they want in their vehicle, and only pay for those features,” said Wayne Weikel, senior director of state affairs for the Alliance for Automotive Innovation, a trade group that represents car manufacturers.

“Better still, consumers would have the ability to change their minds and update the vehicle systems, as the vehicle got older,” Weikel told members of the Assembly Commerce and Economic Development meeting last month.

Internet on wheels

In a report published last year, Kelley Blue Book highlighted how improving technologies have begun to turn many cars into “internet-connected computers on wheels.”

Such advancements allow motorists to monitor things like their cars’ maintenance schedules and other important performance data in real time. Software can also be updated to alter or improve performance, including for electric vehicles that are growing in popularity as fuel prices have turned volatile amid a period of prolonged inflation.

However, the Kelley Blue Book report also noted that such technology is also providing manufacturers with “a new business opportunity,” and some have already begun to experiment by charging motorists monthly fees to use things like remote start and so-called telemetric services.

Under the bill that’s up for consideration in the Legislature, the ban on charging such fees in New Jersey would cover any feature that utilizes the “components and hardware already installed on the motor vehicle at the time of the vehicle’s purchase or lease” and that would “function after activation without ongoing expense to the dealer, manufacturer, or third-party service provider.”

Violations of the proposed ban would result in fines of up to $10,000 for initial offenses, and up to $20,000 for any subsequent offenses, according to the bill.

According to bill sponsors, the measure would not cover services offered by third parties that consumers may want to pay for on an ongoing basis, such as for access to satellite radio or to maintain an onboard Wi-Fi connection.

But it would protect consumers against being charged for something that “used to be free,” said Rooney, who cited as an example things like key fobs that are now commonly used to unlock vehicles instead of keys.

No pay as you go

“Surveys show consumers would rather pay for features up front, or not have them at all,” Rooney said after the bill cleared the Commerce and Economic Development Committee last month.

But when Weikel testified before members of the same committee, he suggested the subscription model could help manufacturers become more efficient, including by streamlining a process that right now requires “dozens of different versions” of vehicles to be built, with varying hardware, switches and consoles, among other features.

“All that needs to be supplied and coordinated exactly as the vehicle is going down the assembly line,” he said.

In the future, it’s possible that all cars could be manufactured with the same hardware. “Under a subscription model, a consumer would be able to customize and update the features on their vehicle, when and how they want them,” Weikel said.

However, as the conversation continued, some committee members noted many consumers may not be tech-savvy enough to use their vehicles in such a way, even if it did have some potential benefits. They also said New Jersey could always change the law or pass a new one if the proposed ban on subscription fees becomes outdated.

After passing the committee in 8-0, with one abstention, the bill would go next before the full Assembly. A version has also been introduced in the Senate, but it has yet to go before any committee.