Washington, D.C., Enacts Service Contract Law

November 26, 2018

A bill related to service contracts has been enacted into law in Washington, D.C. The bill, B584, aims “to provide a legal framework within which service contracts are to be sold and regulated, to establish that a service contract, except where specified to the contrary, is not insurance as regulated under Department of lnsurance and Securities Regulation Establishment Act of 1996, to add consumer protections in the marketing and sale of service contracts, and to provide an effective means of providing services under service contracts”

The bill notes that “the term ‘service contract’ includes a contract or agreement sold for a separately stated consideration for a specific duration that provides for” a number of services, including windshield repair.

The bill was approved by a unanimous Council vote on October 16 and was signed by the D.C. mayor on November 13.

Click here for the full text of the bill.

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