Coast-to-coast, states continue to escalate legislative activity, and along the northeastern shore, Connecticut passed Senate Bill 1357 (SB1357), a significant piece of legislation that will take effect on October 1, 2025. The new law introduces stricter standards for F&I product disclosures, add-on product pricing, and express warranties. Signed into law by Governor Ned Lamont on June 24, this bill is set to bolster consumer protections across the state.
Key Changes: Enhanced F&I Product Disclosures and Clauses
Connecticut SB1357 codifies stricter standards for making “clear and conspicuous” disclosures, especially concerning add-on products and autorenewal clauses. Here’s what this means for your operations.
- Retainability: All add-on product disclosures and clauses must be retainable by the consumer.
- Visual Prominence: Disclosures must be set off from surrounding text by size, typeface, color, or symbols to ensure they stand out.
- Verbal Clarity: For disclosures made in person or over the phone, they must be presented at a pace and volume that the consumer can clearly understand.
Transforming F&I Product Sales and Marketing
The new law significantly impacts how F&I products are sold and marketed. Prepare for these critical adjustments:
- All-Inclusive Quoted Prices: Any vehicle prices quoted by the dealer or featured in advertisements must now include the costs, fees, and charges of any add-on product.
- Separate Itemization: Despite being included in the quoted price, these costs, fees, and charges for add-on products must be stated separately from the vehicle’s purchase or lease price. This ensures transparency regarding each component of the total cost.
- No Pre-Printed Add-on Fees: Dealers are no longer permitted to use forms or invoices that contain pre-printed fees, charges, and costs of add-on products.
Broadening the Scope of Express Warranties
SB1357 also introduces a notable change to the definition and enforceability of express warranties.
- Definition: “Any affirmation of fact or promise made by the seller to repair or replace defective goods” on a sold or leased vehicle will now be considered an “express warranty.”
- Direct Purchase No Longer Required: Crucially, the law states that it is no longer necessary for a buyer to have purchased the goods directly from, or entered into a sales contract with, the seller to assert a claim for breach of an express warranty.
- Protection for Subsequent Owners: This right extends beyond the original buyer; it can apply to someone who later acquires the vehicle, such as a subsequent owner.
What This Means for You
These changes underscore a heightened focus on consumer protection and transparency in Connecticut’s F&I landscape. Businesses operating in the state should review their current product disclosure practices, sales processes, and marketing materials to ensure full compliance before the October 1, 2025, effective date.
If you would like strategies to ensure accurate and transparent practices that protect your business and consumers, download our free guide: Get Audit-Ready: Best Practices for Financing Afermarket Products. Or, if you have any questions or require further assistance in ensuring your products meet the upcoming regulations in Connecticut or elsewhere, please contact your F&I Sentinel representative.
The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials referenced are for general informational purposes only. Readers should contact their attorney to obtain advice with respect to any particular legal matter.
