SACRAMENTO - The Center for Consumer Law & Economic Justice at UC Berkeley welcomes Governor Newsom’s signature on the Combatting Auto Retail Scams (CARS) Act, which will allow California consumers to walk into dealerships with more confidence and less fear. Authored by Senator Ben Allen (Berkeley Law ‘09), Senate Bill 766 gives consumers the right to find out the full price of any vehicle upon request - no more games, no bait-and-switch, no refusal to provide basic information. It also bans outright junk products and services, like “free oil changes” for an electric car. Finally, the new law gives consumers the right to return used cars - no questions asked - within 3 days of purchase, in exchange for a restocking fee.
“Most people wince at the thought of going through the car buying process,” observed Ted Mermin, the Center’s Executive Director. “The CARS Act will address some of the worst practices – like allowing car dealers to try to wear down potential buyers for hours rather than just giving them the information they need – and will level the playing field for honest brokers who never wanted to use or compete against these entrenched abusive practices.”
“California is now positioned to lead the nation in protecting car buyers from junk fees and costly scams,” said Sam Levine, Senior Fellow at the Center. “As the federal government rolls back key safeguards, the momentum behind this bill shows how states can use their own tools to protect consumers and promote fair competition.”
“When I was a legal aid attorney I can’t tell you how many clients I had who experienced devastating consequences from being deliberately stuck with a used car that wouldn’t get them where they needed to go," remarked the Center’s Policy Director, Shelmun Dashan. “Having a 3-day right to return used vehicles will make a world of difference to consumers and will seriously deter dishonest dealers from trying to pawn their lemons off on unsuspecting consumers.”
The CARS Act has Bear paws all over it. In addition to being overseen by Center Senior Fellow Sam Levine, the FTC CARS Rule was spearheaded by Berkeley Law and Center alumnus Dan Dwyer (’12), and the bill’s author, Senator Ben Allen (’09), is also a proud Berkeley Law grad.
The Center applauds all those who had a hand in turning this long-awaited and much-needed idea into law.