The 2025 legislative session came to an end late on the evening of Friday, April 4. This year’s session was notable for the passage of comprehensive tort reform, the first comprehensive reform in 20 years. 

This session was also notable for Georgia’s franchise dealers because of the passage of Senate Bill 81, which updates Georgia’s Franchise Practice Act, the law that regulates the relationship between a local franchise dealer and motor vehicle manufacturer. This is the first update to Georgia’s franchise law since 2019, and it contains several provisions beneficial to GADA members and to the dealer franchise system in Georgia. 

I. Legislative Findings

The Legislative Findings portion of a statute states the reasons why the General Assembly enacts a piece of legislation. Sente Bill 81 amends current law by:

• Adding “recall service” to the list of services of substantial concern to the public that franchise dealers perform for consumers.
• Emphasizing the benefits of competition within the franchise system for consumers, including competitive pricing, service and convenient repair facilities.
• Highlighting additional benefits of local dealerships, such as introducing new automotive technology, supporting and maintaining vehicles after sale, protecting against monopolies and providing stable employment. 

When the constitutionality of laws is challenged in court, judges often look to the legislative findings portion of statutes to help decide whether a statute is valid. It is hopeful these changes will help fortify Georgia’s franchise law. 

II. Data Protection

Dealerships handle significant amounts of sensitive customer data. This legislation would address concerns about data access and security between dealers, Dealer Management Systems (DMS) and data vendors. Specifically, Senate Bill 81: 

• Prevents unauthorized access, sharing or selling of dealership data from a dealer’s DMS.
• Prohibits third parties from limiting a dealership’s ability to protect, store or use its data.
• Allows data integrators to access data on a dealership’s DMS for specific services, provided they comply with industry standards for secure data integration.
• Permits dealers to continuously monitor or audit data accessed from or written to their data systems without interference.
• Allows dealers to back up data and implement redundant systems for business continuity in case of security breaches. 

These changes are designed to promote competition in data management and integration and help dealers secure and monitor third-party access to ensure customer data protection.

III. Over-the-Air (OTA) Updates

The increasing use of OTA updates has raised questions about the role of dealerships in providing repair services. Senate Bill 81 would bring some clarity to this topic by: 

• Requiring manufacturers to compensate franchise dealers when dealers assist customers with OTA updates covered under factory warranty.
• Requiring manufacturers to disclose to dealers each accessory or function of a new vehicle that may be initiated, updated, changed or maintained through OTA updates, along with the associated costs to the consumer. This information can be provided digitally or on the manufacturer’s website. 

These changes aim to ensure fair compensation for dealers’ services and transparency for consumers regarding OTA updates and their costs.

IV. Allocation

Senate Bill 81 aims to bring more fairness and transparency to the allocation process in Georgia. Specifically, it would require a manufacturer’s allocation process to be “fair, equitable and non-discriminatory” to its line-make dealers in Georgia. It would also require manufacturers to give dealers information concerning how allocations decisions were made when requested by dealers. 

V. Showrooms/Galleries

In Georgia, new car dealers cannot engage in “any activity as a new motor vehicle” except at their dealership or a temporary site for which it receives a permit from the Department of Revenue. 

Despite that, some companies have opened “showrooms” or “galleries” at which vehicles are displayed and demonstrated without obtaining a dealer’s license, raising questions about whether they are “engaging in the business of a new car dealer” without the required license. As this would be a potential loophole for manufacturers who want to sell “direct,” like Rivian, Lucid or Scout Motors, Senate Bill 81 addresses this problem by defining specific activities that constitute “engaging in the business of a new car dealer” that would necessitate a dealer’s license. 

Specifically, the following activities would require a dealer’s license: selling, leasing, offering to sell or lease, negotiating terms, accepting deposits, processing reservations, or accepting or negotiating trade-ins. Displaying vehicles alone, or disclosing the MSRP, would not constitute such activity. Thus, Senate Bill 81 clarifies that those without a dealer’s license cannot engage in any sales activity at a showroom or gallery in Georgia.

Conclusion

Senate Bill 81 was GADA’s top priority this legislative session, and we are incredibly grateful to members in the Georgia House and Senate for their strong, bipartisan support. We are particularly thankful to Sen. Brass (R-Newnan), lead sponsor of the bill, and to Rep. Alan Powell (R-Hartwell), who carried the bill in the House. 

We also appreciate all the GADA members who contacted their legislators and encouraged their support. Once again, your voice at the Georgia Capitol was heard, and this legislative victory is the result.