A new Maryland law bars manufacturers from punishing dealers who disclose that advertised prices may be negotiable.
Most Maryland manufacturing and distribution leaders haven't heard of a specific provision in HB306 that directly affects how their dealers operate—and what leverage manufacturers retain over them. The surprise: starting October 1, 2026, manufacturers will be legally prohibited from penalizing dealers for a particular type of price disclosure.
Under Section 15–207(h)(3) of Maryland's Vehicle Laws, manufacturers, distributors, and factory branches are now banned from taking adverse action against a dealer solely because that dealer posts on its website a disclosure stating that the listed price is the manufacturer's minimum advertised price (MAP) and that a lower price may be available.
In plain terms: a dealer can tell customers "this is the manufacturer's advertised price, but we may be able to negotiate" without fear of manufacturer retaliation.
The law specifically prohibits manufacturers from withholding incentives, rebates, or other benefits as punishment for this disclosure. This is narrowly tailored—the prohibition applies only when the adverse action is taken "solely" because of the price transparency statement. Manufacturers retain the right to enforce other dealer agreements and policies unrelated to this specific disclosure.
This applies directly to vehicle dealers operating in Maryland. If your company manufactures or distributes vehicles and works with independent or franchised dealers, this provision changes what you can contractually enforce starting October 1, 2026.
Smaller, independent dealers benefit most. They've historically faced pressure from manufacturers to maintain MAP pricing online, with financial consequences for offering transparent signals about negotiability. This law removes that leverage specifically for price-transparency language.
If you're a manufacturer or distributor: you'll need to review dealer agreements before October 1, 2026. Any contract language that ties incentives or rebates to strict MAP enforcement—without exception for negotiability disclosures—will become unenforceable for this specific reason. You can still enforce MAP policies for other reasons and through other mechanisms.
If you're a dealer: you gain legal protection to post language signaling that your advertised price is negotiable, provided the disclosure specifically references the manufacturer's minimum advertised price. This removes a significant compliance risk.
The provision becomes effective October 1, 2026. Manufacturers should audit their dealer incentive structures and contract language now to avoid disputes or unintended violations after that date.
This is part of the Jack Fitzgerald Price Transparency Act, named legislation focused on dealer pricing practices. The full text appears on Page 2 of HB306.
For a more detailed breakdown of how this applies to your specific dealer agreements or incentive programs, consult your legal counsel or industry association.