In a whirlwind end to the state legislative session, California lawmakers passed significant changes to the state’s lemon laws. These laws protect consumers from defective vehicles by holding automakers accountable.
Gov. Gavin Newsom signed the bill into law on Sept. 29 despite expressing concerns about the rushed legislative process and the bill’s complexity. However, Newsom focused on addressing the growing number of lemon law cases before California’s courts.
How does the new legislation affect current lemon laws?
California’s original lemon law, established 54 years ago, aimed to protect consumers from defective vehicles by providing a clear process for seeking reimbursement or replacement. Assembly Bill 1755 introduces new timetables and rules for these claims.
Proponents argue this will speed up the process and reduce court burdens. However, the bill has faced criticism for being the result of last-minute negotiations and excluding several consumer groups and foreign automakers.
What does the law include?
Supporters say AB 1755 modernizes California’s lemon law statutes to benefit consumers and speed up the legal process over claims.
Here are the key components of the new law:
- Enhanced prelitigation notices and procedures: Consumers must notify manufacturers in writing if they wish to seek a buy-back or replacement. This is necessary if the consumer plans to seek enhanced civil penalties for the manufacturer’s non-compliance with buy-back provisions.
- Manufacturer’s response timeline: Manufacturers must offer repurchase or replacement within 30 days of receiving the consumer’s written notice and complete the transaction within 60 days.
- Filing deadlines for lemon law civil actions: Consumers must file lemon law civil actions no later than one year after a warranty’s expiration and within six years from the date of the vehicle’s delivery.
- Expedited court resolution: If a lemon law case goes to court, the bill mandates mediation, including all decision-makers, with new discovery timelines and early depositions.
- Expedited settlement procedures: The law includes consumer-friendly procedures to ensure timely settlements. If a manufacturer delays, they can be subject to a $50 per day penalty.
Despite signing the bill into law, Newsom has urged lawmakers to reconsider the legislation in the next session and make the reforms voluntary for automakers.
Consumers will have less time to file a claim
Even if lawmakers eventually address the changes Gov. Newsom wants, the law goes into effect on Jan. 1, 2025. Critics argue that consumers could be harmed by the reduced period to file a claim and the limits on how much money they can receive in rebates.
If you believe you bought a lemon, acting quickly is essential. An experienced lemon law attorney can help you understand California’s complex laws and protect your rights.