[HN Gopher] New Jersey legislators aim to ban most in-car subscr...
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       New Jersey legislators aim to ban most in-car subscriptions
        
       Author : toomuchtodo
       Score  : 229 points
       Date   : 2022-10-20 16:53 UTC (6 hours ago)
        
 (HTM) web link (www.thedrive.com)
 (TXT) w3m dump (www.thedrive.com)
        
       | celestialcheese wrote:
       | This is a great step. Subscriptions errode first sale protections
       | by subscription-gating physical objects, allowing OEMs a work-
       | around to first-sale doctrine. If you buy something, you should
       | own it, and be able to fix it, scrap it, re-sell it, whatever you
       | want.
       | 
       | It's interesting NJ included self-driving in the subscription
       | ban. These require significant overhead in compute, engineering
       | resources and greatly impact safety, and if Tesla's pricing is
       | any indication of overall market, FSD will cost a pretty penny.
       | 
       | If full self-driving was offered at 10k up front for the life of
       | the car, or $80/mo, I would imagine many buyers of lower-end
       | vehicles would prefer a subscription.
        
         | [deleted]
        
         | n65463f23_4 wrote:
         | wouldnt that 10k be amortized into the car payment for a
         | similar monthly cost?
        
       | odysseus wrote:
       | So if NJ residents now need to pay a lump sum to get the same
       | features, this means more sales tax money going to the state. I
       | can see why legislators want to get behind this.
       | 
       | Not a fan of subscriptions, but it's good to be aware what
       | politicians are getting out of the deal.
        
         | AlexandrB wrote:
         | Politicians get paid the same whether the state collects a bit
         | more money from car sales or not. It's not like every excess
         | tax dollar ends up in their pocket. Indeed, it's far more
         | likely that car companies will want to lobby (AKA bribe)
         | individual politicians to stop a law like this.
        
       | codegeek wrote:
       | As a NJ resident, it is good to see that we are doing something
       | that may be a good thing. I am already tired of cars being too
       | expensive with too many unnecessary gadgets while the engines are
       | becoming more plastic.
        
       | kylehotchkiss wrote:
       | Go New Jersey! Now get Texas and California on board so car
       | companies don't bother offering these in the country at all
        
         | Hamuko wrote:
         | Aren't they suing California now for having "too strict" of
         | emissions regulations because California's position in the
         | marketplace makes it so that their rules become de facto law of
         | the land? If that goes through, I'm not really sure if
         | California can do really any automotive regulation that other
         | states won't like.
        
           | humanistbot wrote:
           | The Supreme Court just heard arguments in National Pork
           | Producers Council v. Ross [1], which is challenging
           | California's law that pork sold in California must follow
           | certain animal welfare / health & safety standards. A big
           | debate is over whether it was genuinely a health & safety
           | standard versus a purely 'moralistic' law that is seeking to
           | de-facto regulate other states.
           | 
           | The issue is called the "Dormant Commerce Clause" [2], which
           | is the idea that one state can't place "undue burdens" on
           | interstate commerce. California can't just ban all imports
           | from Texas, or vice versa. But courts have generally upheld
           | health and safety laws, like California's car emissions laws
           | or Hawaii's very strict agricultural products import
           | restrictions --- but only if it is narrowly-tailored and
           | there is a compelling state interest. Hawaii has a very
           | compelling state interest in keeping its unique biodiversity,
           | while California has a compelling state interest in keeping
           | the valley of asphalt known as Los Angeles free of smog.
           | There isn't really a good bright line test or definition in
           | existing precedent of what "compelling state interest" means
           | when it must be balanced against "balkanization" [3] by these
           | kinds of laws, so many are hoping SCOTUS uses this case to
           | make a clear definition.
           | 
           | But it is likely that this kind of law would be seen more as
           | a morality regulation than health and safety. California
           | argued that it was not an attempt to legislate moral issues
           | in other states, but more of a health and safety regulation:
           | 
           | > Mongan [California state solicitor] pushed back on some of
           | the hypotheticals about state laws that would condition the
           | sale of products on a company's general health care or labor
           | practices. He told Barrett that Proposition 12 is "focused on
           | the production of goods that are coming into" California,
           | rather than on company-wide policies. "I think we would all
           | recognize," Mongan said, that it would be problematic if
           | states can condition the sales of those products on
           | restrictions of wholly unrelated out-of-state purchasers."
           | [3]
           | 
           | [1] https://www.scotusblog.com/case-files/cases/national-
           | pork-pr...
           | 
           | [2] https://en.wikipedia.org/wiki/Dormant_Commerce_Clause
           | 
           | [3] https://www.scotusblog.com/2022/10/california-law-on-
           | sale-of...
        
           | giantg2 wrote:
           | If they can sue someone over growing their own wheat, they
           | can sue over just about anything with even a tenuous link to
           | commercial activity.
        
             | gamblor956 wrote:
             | Filburn grew wheat for sale and in excess of the production
             | controls, intending to profit from the wheat he sold while
             | also maintaining his own supply.
             | 
             | The connection to interstate commerce was based on the
             | totality of the wheat he grew, not just the excess portion
             | of it that he claimed wasn't part of interstate commerce.
             | And notably, despite all FUD to the contrary, subsistence
             | farming of wheat for personal/non-commercial consumption
             | was legal at the time. That's why they had there was a
             | threshold in the first place; to protect non-commercial
             | wheat farming.
        
             | treeman79 wrote:
             | Commerce clause has been abused to hell and back.
             | 
             | Peoples heads will fall off if the Supreme Court starts
             | undoing all its prior decisions that rely on it.
        
             | mminer237 wrote:
             | _Wickard v. Filburn_ was about the federal legislature 's
             | jurisdiction under the Commerce Clause: https://matthewmine
             | r.name/law/briefs/2L/1st+Semester/LAW+531...
             | 
             | Presumably automakers are suing California for the inverse
             | thereof--the Dormant Commerce Clause-- _a la_ _Southern
             | Pacific Co. v. Arizona_ , saying such authority is actually
             | reserved exclusively to the federal government as an
             | exception to states' general police powers:
             | https://en.wikipedia.org/wiki/Dormant_Commerce_Clause
        
           | kevin_thibedeau wrote:
           | But I thought the GOP was all about states' rights. Surely
           | they haven't been lying all this time.
        
             | dfxm12 wrote:
             | I know you're being tongue in cheek, but of course, the
             | GOP's focus on Federalism is not about states' rights, but
             | about reducing democracy in a nation where, on aggregate,
             | their platform is unpopular. I don't think their voters are
             | so naive that they haven't noticed, either - they simply
             | don't care about that.
        
               | treeman79 wrote:
               | Conservative principles are far more popular than the
               | left wing dogma.
               | 
               | Abortion on day of birth Secure boarders Lower taxes and
               | regulations. Personal responsibility vs government
               | handouts Crime Boys in girls sports.
               | 
               | Discus actual issues and many democrats will be shocked
               | they they are in the wrong party.
               | 
               | But hey, endless personal attacks is a strategy as well.
        
               | zeroonetwothree wrote:
               | Both parties support federalism when it suits their
               | platform and not otherwise.
        
               | p0pcult wrote:
        
               | wernercd wrote:
               | Flip that: Democrats focus is on tyranny of the majority
               | so that a few big cities can rule a nation that doesn't
               | want to live by rules that are destroying places like New
               | York and LA.
               | 
               | It's not that we don't care... it's that we know why our
               | system was setup the way it is.
               | 
               | Because only an idiot supports "Pure Democracy" - we
               | don't have pure democracy for many reasons.
               | 
               | You simply don't care to admit those reasons and address
               | the problems with pure democracy.
        
               | merely-unlikely wrote:
               | > they simply don't care about that
               | 
               | Or don't feel there is a better choice. The biggest
               | oligopoly in the US is in politics.
        
               | leereeves wrote:
               | > in a nation where, on aggregate, their platform is
               | unpopular
               | 
               | Many polls report that the Republicans are more popular
               | than the Democrats at the moment.[1]
               | 
               | Sadly, refusing to acknowledge the existence of differing
               | views seems to be rather common these days.
               | 
               | 1: https://www.realclearpolitics.com/epolls/other/2022-ge
               | neric-...
        
               | Retric wrote:
               | Many congressional elections are unposed due to extreme
               | gerrymandering this zeroes out voters from that party in
               | a nationwide count.
               | 
               | Going alphabetically Alabama 2 of 7 races without
               | Democratic candidates which means Democratic voters in
               | those districts will obviously not vote for a Democrat.
               | 
               | https://ballotpedia.org/United_States_House_of_Representa
               | tiv...
        
               | dahfizz wrote:
               | This is _polling_ data. You have to read the question. In
               | this CNBC poll[1], the question was  "which party do you
               | want to control Congress?" and the Republicans came out
               | ahead.
               | 
               | In this[2] Harvard poll, the question was "would you be
               | more likely to vote for a Republican or a Democrat in the
               | midterm" and it was a 50/50 tie.
               | 
               | Generally, I think OP's conclusion is correct. There is a
               | tendency in this bubble to assume that the GOP is dead
               | and unsupported, but that is not the case.
               | 
               | [1] https://www.cnbc.com/2022/10/20/gop-holds-big-leads-
               | on-key-e...
               | 
               | [2] https://harvardharrispoll.com/key-results-october-3/
        
               | Retric wrote:
               | I agree the GOP has quite a bit of support, even when
               | they lose an election they still get close. However, it's
               | important to understand what is actual support vs
               | designing your platform for the system vs tweaking the
               | system.
               | 
               | The 2016 presidential election was R 62,984,828 to D
               | 65,853,514 in votes with 55.7% turnout of registered
               | voters. But in that exact same election the house votes
               | went 63,182,073 R vs 61,765,832 D. In other words the R
               | house got +200 thousand votes and D lost over 4 million
               | votes in the house.
               | 
               | That kind of advantage is common in recent elections.
               | They lost in 2020 at R 72,760,036 vs D 77,529,619 in the
               | house, but was still much better for them than the
               | presidential election at R 74,216,154 vs D 81,268,92.
        
               | [deleted]
        
               | jedberg wrote:
               | That's the congressional vote, which suffers from
               | gerrymandering.
               | 
               | In raw numbers, far more people support the Democrats
               | than the Republicans.
        
               | dahfizz wrote:
               | Its polling data, not an actual vote.
               | 
               | According to this CNBC poll[1], on the question of "party
               | preference to control Congress", the Republicans come out
               | ahead. Its close, but hardly the landslide Democrat
               | victory you would expect if nobody supports the GOP.
               | 
               | I would recommend you take another look at the polling
               | data[2]. It might help pop some bubbles.
               | 
               | [1] https://www.cnbc.com/2022/10/20/gop-holds-big-leads-
               | on-key-e...
               | 
               | [2] https://www.realclearpolitics.com/epolls/other/2022-g
               | eneric-...
        
               | leereeves wrote:
               | It's the _generic congressional vote_ , which is simply
               | the percent of people polled who prefer either party.
               | It's analogous to the popular vote for President, not the
               | percent of seats either party is predicted to win.
        
               | Retric wrote:
               | Many races only have candidates from a single party.
               | 
               | Which discards votes in any such count not just from the
               | election tallies but also likely voters.
        
               | leereeves wrote:
               | Pollsters know that, so they phrase questions to avoid
               | the issue, like:
               | 
               | "Would you rather see the Republicans or the Democrats in
               | control of Congress, or doesn't this matter to you?"
               | 
               | (from Monmouth)
        
               | Retric wrote:
               | That doesn't help when you ask if someone is a likely
               | voter and they say no because of who's running.
               | 
               | Granted it doesn't say it's asking likely voters, but
               | somehow they got 95% of responses say they are registered
               | voters when only 50% of Americans are registered voters.
               | 
               | (Page 8) https://www.monmouth.edu/polling-
               | institute/documents/monmout...
        
               | leereeves wrote:
               | > somehow they got 95% of responses say they are
               | registered voters
               | 
               | That's 95% of people who are old enough to respond to the
               | poll (under 18 are excluded without reporting) and don't
               | hang up.
               | 
               | I don't find it strange that people who aren't registered
               | to vote hang up without responding to the poll.
        
               | Retric wrote:
               | There are many possibilities, but the point stands that
               | it's clearly a very biased sample. Almost 80% of people
               | between 65-74 are registered voters but that's still a
               | long way from 95%.
        
               | jedberg wrote:
               | All the surveys are only of "likely voters". People who
               | live in heavily gerrymandered districts tend to say "I'm
               | not planning on voting". Also a lot of younger people who
               | generally support Democrats aren't even included in the
               | surveys.
        
               | pessimizer wrote:
               | If this were generally true, you'd see more polls erring
               | in favor of Republicans. I can't recall any mainstream
               | polling misses that have; do you have any references?
        
               | rhcom2 wrote:
               | Support for party isn't the best metric for support for
               | the _party 's policies_ though. There is broad support
               | for gay marriage for example but marriage between a man
               | and a woman and the "incorrectly decided" Obergefell v.
               | Hodges is still part of the Republican platform.
               | 
               | To me support for a party is much more about tribalism
               | and branding than actual policy.
        
               | w1nst0nsm1th wrote:
               | But FDR, with its New Deal, is still the prefered US
               | President, and by a large margin :
               | 
               | https://en.wikipedia.org/wiki/Historical_rankings_of_pres
               | ide...
        
             | [deleted]
        
           | jaywalk wrote:
           | At least with something like this, it would be relatively
           | simple for the manufacturers to just enable the functionality
           | based on where the car is sold.
           | 
           | Can't do anything like that with emissions regulations.
        
             | acomjean wrote:
             | Kia and Subaru do that in Massachusetts with some features
             | (remote start). They blame "right to repair" laws we have
             | on the books..
             | 
             | https://www.techdirt.com/2022/02/07/kia-subaru-disable-
             | usefu...
        
             | AlexandrB wrote:
             | You totally can. VW's emissions cheating scandal was about
             | the ECU firmware tuning the engine for lower emissions when
             | it detected an emissions test and then switching back to
             | tuning for performance the rest of the time. No reason you
             | couldn't do the same but based on location.
        
               | [deleted]
        
             | Bilal_io wrote:
             | I can see them attempting that, but it'll give legislatures
             | in other states an incentive to make it law as well, simply
             | from the view of "look they're treating us different" which
             | usually pissed people off more than when everyone is
             | treated shitty but equally.
        
       | causality0 wrote:
       | Good. I'm tired of every single industry becoming a bunch of
       | rent-seeking vampires trying to nickel and dime me to death.
        
       | kennend3 wrote:
       | Can we add XM radio to the list?
       | 
       | I bought a new car and they keep calling and send mail to my
       | house far too frequently.
       | 
       | I've told them NO around a dozen times..
       | 
       | They are bordering on harassment.
       | 
       | Just because you put some receiver in my car doesn't mean you can
       | constantly contact me. I never asked for it and they should take
       | no for an answer.
        
         | Retric wrote:
         | Rather than simply saying No tell them to put you on their do
         | not call list.
         | 
         | Saying that is useless in many situations, but for a company
         | like XM Radio that you haven't done business with they really
         | need to follow those rules.
        
           | BitwiseFool wrote:
           | Some companies have notoriously desperate pesterering. I've
           | opted out of XM Radio and Spectrum solicitation multiple
           | times. It doesn't seem to stick.
        
             | Retric wrote:
             | You must explicitly use the words "Put me on your do not
             | call list."
             | 
             | It's dumb, but _"If you want a telemarketer to stop calling
             | you, do not say "Quit calling me" or "Don't call me again."
             | In some companies, Reps are informed under strict
             | guidelines to only delete records if the customer
             | specifically requests they do so. Telemarketers are only
             | required to put you on the "Do Not Call" list if you
             | SPECIFICALLY request to be put on it._
             | 
             | https://consumerist.com/2007/08/27/to-get-telemarketers-
             | to-s...
        
       | diebeforei485 wrote:
       | I tend to agree for heated seats, but not for driver assistance.
       | I think there will be a chilling effect - New Jersey customers
       | might be forced to pay upfront for driver assistance features
       | that residents of other jurisdictions could pay for on a monthly
       | basis.
        
         | scotuswroteus wrote:
         | You're saying that only New Jersey is doing this for New
         | Jersey-specific reasons. No other state's legislature thinks
         | it's entirely bullshit. Yeah, that's definitely a smart,
         | informed understanding of how each state's legislature works
         | and is motivated and not at all a stupid took-Econ-101-before-
         | I-developed-common-sense take. Totally agree. Chilling effects.
        
           | diebeforei485 wrote:
           | It would take the company extra legal work to figure out if
           | they can offer a driver assistance subscription in New Jersey
           | or not.
           | 
           | Perhaps New Jersey customers would have to wait longer than
           | others for the whole product (because there is too much
           | complexity in having a NJ-specific SKU)..
        
         | AlexandrB wrote:
         | I prefer to be able to choose which payment mode I want (by
         | using a credit card or line of credit) instead of being
         | railroaded into monthly payments. Subscriptions also never end.
         | You never "pay off" your heated seat subscription.
        
       | pxx wrote:
       | I don't get it. People seem to think that if you ban this
       | practice, you'll get the premium package for free. That's not
       | going to be the case.
       | 
       | Currently, you can pay for heated seats all up-front or via a
       | monthly subscription. This proposed legislation prevents you from
       | paying for it via a monthly subscription. So automakers will stop
       | allowing you to do that. All you've done is limit customer
       | choices.
        
         | nequo wrote:
         | Subscription services are a technology for carmakers to
         | practice price discrimination.[1] Price discrimination
         | reallocates consumer surplus to carmakers. It is not good for
         | you unless you're a carmaker.
         | 
         | Without subscription services, they only have the option of
         | limiting heated seats to certain trims. If you want heated
         | seats, you can buy one of those trims. But that trim probably
         | comes with other features, too, that contribute to your surplus
         | as a consumer.
         | 
         | With subscription services, they can force you to pay for
         | everything feature-by-feature. This is worse for you, better
         | for them.
         | 
         | [1] https://en.wikipedia.org/wiki/Price_discrimination
        
           | zeroonetwothree wrote:
           | This is false. Price discrimination is good for consumers
           | that opt out. In the absence of price discrimination the
           | price ends up somewhere in between, which is worse for
           | customers that would have paid less.
        
         | Larrikin wrote:
         | Good, it shouldn't be an option. Killing the subscription model
         | for cars in the crib prevents the subscription model from
         | eventually being your only choice one day.
        
         | ianferrel wrote:
         | Price discrimination often allows producers to capture more of
         | the surplus for complicated reasons that mostly boil down to
         | the fact that they are the party with more information.
         | 
         | A limit on complicated pricing models likely results in some
         | deadweight loss, but may result in higher aggregate consumer
         | surplus.
         | 
         | Choice isn't everything.
        
           | zeroonetwothree wrote:
           | Price discrimination works fine without subscriptions. They
           | can charge $1000 for heated seats one time rather than
           | monthly. This is entirely orthogonal.
        
             | ianferrel wrote:
             | Uh... If you have more pricing options, you get more price
             | discrimination. It's not _entirely_ orthogonal.
        
         | raverbashing wrote:
         | > prevents you from paying for it via a monthly subscription
         | 
         | And why in tarnation would I pay monthly for something that has
         | a fixed cost to the manufacturer?
        
           | nordsieck wrote:
           | > And why in tarnation would I pay monthly for something that
           | has a fixed cost to the manufacturer?
           | 
           | There is a broad equivalence between capex and opex.
           | 
           | I find subscriptions distasteful, but I can still acknowledge
           | that, depending on the price, they may be reasonable compared
           | to ownership.
        
           | sokoloff wrote:
           | I would happily pay $10/mo for 5 months a year for the 4
           | years I expected to own the car rather than $250-500 to buy
           | heated seats.
           | 
           | I don't care about someone else's costs; I care about the
           | value I get and the price I'm asked to pay. If someone else
           | makes a profit because they structure the deal smartly, good
           | for them.
        
             | kelnos wrote:
             | The problem is that you're still paying some subset of that
             | $250-500 (in addition to the subscription fee), because in
             | order to offer the subscription option to anyone, they have
             | to include the hardware in every car, even if a particular
             | owner decided not to buy the subscription. The carmaker has
             | to defray that cost somehow, and that means every car gets
             | a little bit more expensive up front, regardless of whether
             | or not you pay for the subscription.
             | 
             | Also I wouldn't be surprised if you're not permitted to buy
             | the subscription on a month-by-month basis, and instead
             | have to buy it in 6-month or 12-month chunks. Maybe some
             | carmakers don't do this, but they can, and some will.
        
               | leetcrew wrote:
               | I really doubt the per-unit hardware cost to install
               | heated seats is anywhere near what they cost to option.
               | it's not a complex technology, and plenty of cheap cars
               | come with them standard. the manufacturer might even
               | break even on the additional parts cost by only making
               | one kind of seat. or they might make up for it by
               | increasing the margin in some other option that you may
               | or may not choose. who knows?
        
             | pessimizer wrote:
             | Doesn't seem wise.
             | 
             | a) spend $250-500 to buy heated seats, which you will sell
             | in 4 years with some portion of that $250-500 as a premium
             | added to the sale price of the car, or
             | 
             | b) spend $200 (and the overhead on managing the bill for 4
             | years) on heated seat rent, and in four years you can sell
             | the option to someone else to pay $10/mo, assuming the
             | company decides to allow that option to be transferred
             | rather than refuse in order to damage the sales of lightly
             | used vehicles.
        
             | [deleted]
        
         | sublinear wrote:
         | Nope. The cost of the hardware is always necessarily still
         | passed on to the customer before they even pay for the
         | subscription to "unlock" it. It's double dipping.
         | 
         | It makes no sense to gamble that upsells will be successful in
         | exchange for a more competitive price. There's guaranteed loss
         | with that idea.
         | 
         | The components pre-installed must cost something and it's not
         | possible for the manufacturer to get that money back unless
         | they both installed inferior junk nobody wants and then baked
         | it into the price.
        
           | bryanlarsen wrote:
           | > The cost of the hardware is always necessarily still passed
           | on to the customer before they even pay for the subscription
           | to "unlock" it.
           | 
           | That's not true. Razors are the canonical example of a
           | product sold below cost, there are many others.
           | 
           | > The components pre-installed must cost something
           | 
           | They must cost something, but there's also a significant cost
           | to creating multiple SKU's, and that cost is likely more than
           | the cost of the heated seats.
        
             | sublinear wrote:
             | > That's not true. Razors are the canonical example of a
             | product sold below cost, there are many others.
             | 
             | Trivially wrong. Heated seats are not required for a
             | vehicle to function.
        
             | sokoloff wrote:
             | On my Jeep Grand Cherokee, without checking I wagered the
             | wiring harness would be the same across the models without
             | heated seats (mine) and with (the junkyard leather seat
             | package I bought). I was surprised to learn I was wrong.
        
           | [deleted]
        
         | Workaccount2 wrote:
         | > People seem to think that if you ban this practice, you'll
         | get the premium package for free.
         | 
         | No, no one thinks that. What people do think is that if they
         | buy it, they will own it, and it will be theirs. Not a rental
         | from a megacorp whose auth servers shit the bed on the coldest
         | day of the year.
        
           | bluGill wrote:
           | The good news is I can not pay for heated seats, and then run
           | my own wire to get it.. it won't look as nice, but it will
           | work
        
             | bombcar wrote:
             | UNAUTHORIZED VOLTAGE DISCHARGE DETECTED
             | 
             | SYSTEM SAFETY MECHANISMS ENGAGED
             | 
             | car is now inoperable
        
               | merely-unlikely wrote:
               | Right to repair laws would help here.
        
           | kabdib wrote:
           | Just because you've paid a lump sum doesn't mean that
           | terrible servers aren't involved every time you start your
           | car -- they could just be checking the perma-status of your
           | purchase every time ("for security purposes").
        
       | hn_throwaway_99 wrote:
       | I think this is great, and though I agree that determining
       | whether there is an "on-going cost to the manufacturer" will be a
       | gray area that automakers will try to game, I think that's a
       | solvable problem.
       | 
       | The heated seats example is a great one. There is no reason for
       | this not be a one-time charge.
       | 
       | On the other hand, I think it's fair to offer autopilot/"full
       | self driving" on a subscription, or at least the _upgrades_ as a
       | subscription. Clearly there is a large ongoing cost to
       | continually improve self-driving capabilities, and it seems
       | reasonable to me to have a pricing model that reflects that.
        
         | leetcrew wrote:
         | > The heated seats example is a great one. There is no reason
         | for this not be a one-time charge.
         | 
         | if you're referring to BMW, the heated seats are still
         | available as a one time charge. they're just also available as
         | a subscription if you didn't option then upfront. heated seats
         | seem like a weird fit for the subscription model, but as long
         | as the upfront purchase option is reasonably priced, I don't
         | really see the issue with this.
        
           | dahdum wrote:
           | The issue is you already paid for the heating element in the
           | seats when you bought the car, and you are driving it around
           | as dead weight (however small). You own the heater outright,
           | they are gatekeeping your ability to use it.
        
             | paxys wrote:
             | That has nothing to do with subscriptions. The manufacturer
             | could still sell you the car with the heater disabled, make
             | you drive around with the dead weight, and charge you a
             | one-time fee to unlock it. That would be perfectly
             | acceptable under this law.
        
         | fintechjock wrote:
         | > On the other hand, I think it's fair to offer autopilot/"full
         | self driving" on a subscription, or at least the upgrades as a
         | subscription.
         | 
         | Agree with your overall point. However, this probably isn't
         | feasible considering most companies will follow Tesla's FSD
         | upgrade model.
         | 
         | Autopilot / FSD upgrades are often more safety than feature
         | related. Allowing people to opt out of upgrades but keep their
         | older FSD just means a bunch of vehicles on the road with
         | depreciated safety features.
        
       | w1nst0nsm1th wrote:
       | In Belgium, home shitrooms are considered as a premium feature...
       | You have to pay monthly fee to use them or you can get locked
       | outside (or inside) without notice, even if you own your house.
       | 
       | Seriously, nobody said a thing when HP started to do it with
       | their printers. And everybody jumped in the wagon when we started
       | proposing such a thing as SaaS, IaaS and so on.
       | 
       | Apple App Store recommandations is 90% filled with subscription
       | apps very few people actually use or like. Don't get me started
       | with these pay to win games were you have to buy 'coins' or
       | 'diamonds' to spend in the game if you don't want to wait 24h for
       | a building or wathever before you can continue playing.
       | 
       | I have consulted prices for a remote virtual desktop instance for
       | malware analysis et reverse engineering training (I don't trust
       | home virtual machine) on Azure...
       | 
       | I have nothing again MSFT and think it's a company which still
       | produces real value for its consumers on many fronts (as opposed
       | as WeWork, for example). But the price they ask for a remote
       | machine with very low specs is stagering. How a manager could
       | decently believe it's a good idea to give away in 6 or 12 months
       | the same money you could use to buy enterprise level hardware
       | with 5x specs ?
        
       | [deleted]
        
       | paxys wrote:
       | People sure seem to love government overreach when they think it
       | works in their favor.
       | 
       | The economics behind one-time vs subscription pricing is very far
       | removed from the responsibility of a New Jersey bureaucrat. Let
       | Ford and BMW and Tesla figure it out for themselves. If people
       | really do hate it as much as the article and the lawmakers seem
       | to suggest, they will simply not buy it.
        
         | travisporter wrote:
         | Your first sentence is interesting. If government represents
         | the will of the people then it would not be overreach.
        
       | supernova87a wrote:
       | So what's the fundamental principle here, and why does it only
       | apply to car companies? Just because you can make a law that way,
       | it follows a principle you respect?
       | 
       | I'm not concluding my opinion on either side of this right now. I
       | just am lately skeptical of the number of laws and movements we
       | have that are justified "because I agree with this particular
       | outcome" but aren't sustainable principles to run a society off
       | of (without constantly having to create exceptions). Even if I
       | like that I'm not being "gouged" in NJ, is the principle behind
       | this right?
       | 
       | Is the principle, "you shouldn't be charged for something that a
       | company has already built and put in the product"? Or "we don't
       | like paying for something that seems like you should physically
       | have control over"?
       | 
       | If it's the first one, how does this not apply to subscription
       | models in general? Tons of companies have stuff they've already
       | built and put in what the customer could conceivably already
       | access without charge. Printer ink, locked CPU cores, how about
       | private areas of venues that you have to pay extra to access?
       | Software that a company has already developed but doesn't "cost
       | them anything" to keep offering to you aside from a login
       | barrier. First class seats on airplanes. Doesn't this all follow
       | the same principle?
       | 
       | On the second principle, why is this specially deserving of
       | interference / protection in what customers are willing to pay or
       | tolerate? Why don't they pass a law about not being "gouged" on
       | extra storage on my iPhone costing $100 more? The memory is
       | already in there, why should I be forced to pay extra to unlock
       | it? (or similar analogy)
        
         | yupper32 wrote:
         | Cars are often one of the most, if not the most, expensive
         | purchases people will make in their lives. It's not
         | unreasonable to me to have extra protections for those
         | purchases.
        
         | vkou wrote:
         | For the same reasons that car buyers enjoy more consumer
         | protections than purchasers of most other goods. Because cars
         | are incredibly expensive, are necessary for life in America,
         | and because there's huge incentives for manufacturers and
         | dealers to screw the buyers.
        
       | solomatov wrote:
       | "Costing money to maintain feature" is a great criteria for legal
       | subscriptions. Could it be applied more broadly than in the car
       | industry?
        
         | dawnerd wrote:
         | Mainly targeting subscriptions to enable seat warmers for
         | example. That's something becoming more common that has zero
         | cost to the manufacturer past vehicle delivery.
        
           | rightbyte wrote:
           | Oh but the butt heat license server will cost them money!
           | 
           | So after 15 years they will deprecate the service. Probably
           | in the middle of the winter.
        
       | bearcobra wrote:
       | I have mixed feelings on this. On one hand the idea of
       | subscriptions for components that are physically present in the
       | car and don't require ongoing cost by the manufacturer to support
       | them is annoying. On the other hand I think that there could be
       | some advantages to that model. The costs of cars seem to going up
       | considerably because of all the advanced features. If it is
       | possible to standardize some of the manufacturing process to
       | reduce cost and control access to items with software that could
       | be a win. It would also be nice to have the ability to try
       | features out in your real live before deciding if you want them.
       | Or it could allow drivers to add features for short periods of
       | time. It might not make sense to buy heated seats if you live in
       | Florida, but are travelling to Colorado for a ski vacation paying
       | $10 to unlock if for a month might an awesome feature.
       | 
       | I think the middle ground would be to require manufacturers to
       | offer a lifetime unlock option for any feature that could be
       | subscribed to without an ongoing maintenance cost.
        
         | anon23anon wrote:
         | Does create an interesting problem of if your vehicle is out of
         | warranty and you buy the heated seats package shouldn't they
         | responsible to fix the heated seats if they're not working.
        
         | neogodless wrote:
         | > If it is possible to standardize some of the manufacturing
         | process to reduce cost and control access to items with
         | software that could be a win.
         | 
         | I think if you believe any savings will end up with consumers
         | and not manufacturers, you'll likely find the manufacturers are
         | happy to prove you wrong.
        
         | mission_failed wrote:
         | I challenge you to find a single example of introducing
         | subscriptions reducing costs
        
           | [deleted]
        
           | jasonsb wrote:
           | Driver assistance systems for example. I don't want to pay
           | for those features, but if I don't get them when I configure
           | the car it's going to be much harder to sell the car a few
           | years later. If those features can be activated later on, I
           | won't lose money when I'll sell my car. So it reduces the
           | initial cost of the car and then I also get a better resale
           | value.
        
             | forthefuture wrote:
             | It's already priced in. You're just paying more for the
             | features you aren't using.
        
         | rconti wrote:
         | The law seems to allow software unlocking, just not
         | subscriptions.
        
         | MonkeyMalarky wrote:
         | >The costs of cars seem to going up considerably because of all
         | the advanced features.
         | 
         | Or Maybe they could just not add all those features? Crazy, I
         | know.
        
       | neogodless wrote:
       | > if an automaker or other associated party can prove that it
       | costs money to maintain the feature and/or service in question,
       | then it'd be legally allowed. This would include services like
       | OnStar and such.
       | 
       | While I don't disagree with the exception here, I think they
       | should outlaw mandatory subscriptions... like OnStar, which GM
       | has started to add to most of their cars. It's not in the MSRP,
       | but it's a required cost at the dealer.
        
         | zeroonetwothree wrote:
         | No one is forcing you to buy that car mode. Many cars don't
         | have mandatory subscriptions.
        
           | AlexandrB wrote:
           | Now apply this argument to ads on smart TVs. Oh wait...
           | 
           | Recurring revenue business models are really appealing and
           | companies are happy to take a short term hit in sales in
           | order to increase their recurring revenue. Add to that the
           | fact that people choose cars for all kinds of irrational
           | reasons and I cynically expect car subscriptions, including
           | mandatory subscriptions, to become the norm within a decade.
        
             | BitwiseFool wrote:
             | >"Now apply this argument to ads on smart TVs."
             | 
             | I'd love that. But sadly I can't vote with my wallet
             | because virtually every television _is_ a Smart TV
             | nowadays. I would gladly pay more for a TV if I could find
             | one that wasn 't bundled with all the extraneous stuff.
             | Especially one that isn't designed to be a sign in a fast
             | food restaurant.
        
           | neogodless wrote:
           | No one is forced to buy any car, including ones with
           | subscriptions for heated seats. That isn't really a useful
           | argument.
           | 
           | Mandatory subscriptions take what might be the "ideal" car
           | for a particular consumer, and add in an extra (in this case)
           | $1500 cost for something you do not want. It should 100% be
           | the buyer's choice if they want to prepay 3 years worth of an
           | "optional" subscription.
           | 
           | It's better for consumers of something that external like an
           | internet service is not forced upon you when buying a
           | vehicle. There's no downside to consumers if it's optional -
           | but it makes otherwise good options for vehicles worse.
        
         | Arrath wrote:
         | > I think they should outlaw mandatory subscriptions
         | 
         | Agreed! Mandatory subscriptions are outrageous.
        
         | devrand wrote:
         | I think it still works for that. In the OnStar case you have
         | the option to decline the service, but you still need to pay
         | for it. That would likely run afoul of the requirement that it
         | has ongoing costs to support the service.
         | 
         | So I think this law would force automakers to either back-off
         | or include it in the MSRP.
        
           | neogodless wrote:
           | > you have the option to decline the service, but you still
           | need to pay for it
           | 
           | That's not how "declining a service" should work. How about I
           | _don 't pay for it_ and then I don't get the service!
        
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