As you have probably read in DWM last week, Connecticut Gov. Dannel Malloy vetoed the state’s recently passed legislation that aimed to dictate how quickly warranties get processed and paid for windows, roofing and siding. This might seem like a minor victory at the state level, but it is actually a major victory that eliminates a potential precedent for other states to follow suit.

Known colloquially as the “Connecticut Warranty Bill,” it was categorized as consumer protection legislation. On the surface, this sounds like a good thing. But as you dig deeper, it is clear that it had the potential to be harmful to manufacturers selling into the state.

One of my biggest concerns with the bill was that warranty offerings are like pricing strategies and should vary from one company to another. They are a competitive differentiator that should not be regulated by government entities. Furthermore, it had the potential to result in added costs accrued for warranty claims beyond their current rates, impacting the profitability of manufacturers in our industry.

And you had to ask: Is it even good for consumers? The short answer is probably not. Many would never need the coverage, but could be paying for it up front. This is certainly one case where government involvement is not good for consumers or manufacturers.

Needless to say, I was more than pleased to hear of the veto.

For this, I have to give credit to both Gov. Malloy and the WDMA for its continued efforts to protect manufacturers in our industry. They were the first to raise red flags in June and so many members took the time to share their opinions opposing the bill.

The View from Here is that this is an example of government working as it should. The people spoke and the governor clearly considered the voices of those most affected. But there will be veto hearings on the topic coming soon, so it’s not a closed cased just yet – and it’s one we should continue to keep an eye on.

What’s your View? Email me directly at eric.jackson@quanex.com.

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