The California Senate today passed SB 766, the Combating Auto Retail Scams (CARS) Act, marking a major victory for California consumers against junk fees and bait-and-switch tactics. Authored by Senator Ben Allen and backed by the Center and a broad coalition of consumer advocates, the legislation cracks down on deceptive practices in the sale of new and used vehicles – California’s number one source of consumer complaints.
“Buying a car shouldn’t feel like navigating a minefield,” said Ted Mermin, the Center’s Director. “This bill ensures car buyers get what they pay for, and aren’t stuck with worthless add-ons or vehicles with hidden damage.”
"The process of purchasing a vehicle can be riddled with hidden costs, unnecessary add-ons, and undisclosed maintenance problems," said Senator Allen. "SB 766 is one important step to increase consumer confidence by improving transparency so folks know what they are actually buying and how much they’re spending.”
The CARS Act requires clear pricing, bans worthless add-on products, and gives used car buyers a three-business-day cooling-off period to avoid being trapped by scams such as odometer fraud, loan packing, or the sale of rebuilt wrecks disguised as safe vehicles. The bill is expected to save consumers time and money, and to strengthen competition by leveling the playing field for honest dealers.
The CARS Act is modeled after the Federal Trade Commission’s CARS Rule, which was finalized in 2024 with the strong support of the Center. Earlier this year, the Center announced that Sam Levine – who led the development of the federal rule as Director the FTC’s Bureau of Consumer Protection – would join the Center as a Senior Fellow.
“California is now positioned to lead the nation in protecting car buyers from junk fees and costly scams,” said Levine. “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.”
The bill now moves to the California Assembly, where the Center along with a broad coalition of consumer advocates are urging swift passage.