Connecticut Warranty Dealer Law Signed by Governor

The Northeast Equipment Dealers Association reports that the legislators and Governor of Connecticut have enacted CT SB 264 – an Act Concerning Reimbursement for Warranty Claims to Retail Dealers of Power Equipment.

As OPE Business reported in May, this updates the warranty provisions included in the state’s equipment dealer law, improving the language that addresses dealer compensation for diagnostic time, labor and parts, reimbursement rates, and rejection of claims based on submission errors.

Among other provisions, the act states:

  • “Whenever a supplier and a dealer enter into a dealer agreement that provides for consumer warranties, the supplier shall pay any warranty claim made for parts and service not later than 30 days after receipt and approval of such claim by the supplier.”
  • “A supplier that pays a warranty claim … shall pay the dealer the current net price plus 18 percent for any parts and the posted hourly labor rate the dealer charges consumers for nonwarranty repair work for service.”
  • “A supplier who denies a warranty claim made by a dealer …shall allow the dealer an opportunity to resubmit such claim according to reasonable supplier guidelines not later than 30 days after the initial claim denial or charge-back.”

The act will take effect January 2022. See the full act here.



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