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IL SB3708
Bill
Status
2/5/2026
Primary Sponsor
Ram Villivalam
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AI Summary
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Prohibits manufacturers, distributors, and wholesalers from distributing new motor vehicles directly to consumers or circumventing franchise distribution obligations under the Motor Vehicle Franchise Act
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Bars manufacturers, common entities, or distributors from owning or operating dealerships or selling new vehicles directly in Illinois, unless they were lawfully licensed to do so before January 1, 2022
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Makes it a violation for any manufacturer with an established franchise dealer network in Illinois to sell, lease, or service new motor vehicles in ways that bypass or compete with their existing franchisee network
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Defines "common entity" as any person directly or indirectly controlled by a manufacturer, importer, or distributor, or who shares common management with such entities, excluding parts suppliers and financial institutions not engaged in new vehicle sales
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Adds directly or indirectly competing with franchisees in the sale, lease, or warranty service of new motor vehicles to the list of unfair practices that cause damage to parties or the public
Legislative Description
MOTOR VEHICLE FRANCHISE-SALES
Last Action
Referred to Assignments
2/5/2026