Suzanne Potter, producer/reporter, California News Service, a bureau of Public News Service.
You know how some car dealerships tell people one price to get them in the door, then jack it up with a bunch of add-ons? It would become
illegal under a bill being considered in California.
The Combating Auto Retail Scams Act has been approved by the legislature and is headed to Governor Newsom’s desk.
Rosemary Shahan, president of the nonprofit Consumers for Auto Reliability and Safety, said the change would save California car buyers millions.
“It will require car dealers to disclose the total price up front,” Shahan explained. “It addresses the problem of bait and switch. It’s a flat-out prohibition against charging more than what they advertise as the total price.”
Initial opposition came from car dealers, auto lenders, the Chamber of Commerce and the Civil Justice Association but they negotiated amendments and dropped their objections.
Under President Biden, the Federal Trade Commission issued a similar rule nationwide but it was struck down in court and the Trump administration has not indicated plans to revive it. The California version would also prohibit car dealers from selling add-ons which do not benefit the consumer, for instance, lifetime oil changes for an electric vehicle.
Shahan noted California would also become the first state in the country to require a cooling-off period for used car sales.
“If you buy a car that costs $50,000 or less, you would be able to bring it back and get a refund,” Shahan stressed. “You could bring it back for any reason at all.”
Dealers would be allowed to charge a restocking fee of between $200 and $600, depending on the sales price of the car.
