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Consumer protections at risk as new bill threatens lemon law

August 30, 2024 | California State Assembly, House, Legislative, California


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Consumer protections at risk as new bill threatens lemon law
In a recent government meeting, coalition partners expressed strong opposition to a proposed bill that they argue would significantly undermine consumer protections for new car buyers in California. The bill, which critics claim would weaken the state's longstanding lemon law protections, has raised concerns among consumer advocates and lawmakers alike.

Since the enactment of the Song-Beverly Consumer Warranty Act in 1970, California has provided robust safeguards for vehicle owners. However, the new legislation would introduce several detrimental changes. Notably, it would eliminate full lemon law protections for vehicles with warranties exceeding six years, a shift that could leave many consumers vulnerable. Additionally, the bill proposes to shorten the timeframe for filing lemon lawsuits to just one year after a warranty expires, potentially disadvantaging those with vehicles that develop latent defects.

Financially, the implications are stark. The proposed changes could result in an average refund reduction of approximately $6,000 for lemon law claimants with negative equity. Furthermore, the bill would complicate the process for consumers seeking warranty repairs, as it would impose new barriers that could deter individuals from pursuing necessary fixes without legal assistance.

Critics of the bill argue that these changes would erode the consumer-friendly framework established over the past 54 years, making it increasingly difficult for car owners to seek recourse for defective vehicles. The coalition's stance highlights a growing concern over the potential rollback of consumer rights in the automotive sector, emphasizing the need for continued advocacy to protect California's car buyers.

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