California lemon law – the Song-Beverly Consumer Warranty Act – is one of the most consumer-friendly laws in the entire country, and it’s under attack… again. General Motors has a long, checkered history of trying to change CA lemon law in its favor.
As lemon law attorneys, we’re very close to this issue – and we want to share the effects of this law.
GM is working to erode consumer protections – working to get legislation passed quickly and under the radar. The brand drafted Assembly Bill 1755 in the shadows without allowing consumer advocate groups, auto safety organizations, car dealers, or even other manufacturers to add their thoughts.
Governor Gavin Newsom signed the bill on September 29th and it will go into effect on January 1st, 2025.
What is Assembly Bill 1755?
On the surface, Assembly Bill 1755 sounds like a win for consumers. But when you peel back the layers, it will have disastrous effects on lemon law rights.
The bill will work to expedite the recovery process for consumers who have purchased a vehicle with manufacturer defects in California. It will also require pre-litigation notices to get cases resolved out of court more easily – while streamlining the discovery and mediation processes.
The “intention” of this bill is to have lemon law claims resolved much faster.
But we need to consider:
Every lemon law case that gets resolved in the consumer’s favor equates to a substantial loss for the auto manufacturer – both in terms of monetary value and brand reputation.
Why would a major auto manufacturer choose to make this process easier for consumers?
Why is GM Pushing to Change California Lemon Law?
It’s no secret there has been a big uptick in GM lemon law claims in recent years.
Ford continuously leads the car industry in safety recalls. To give you an idea, Ford had over 6 million vehicles recalled in 2023. And that’s just part of the recalls for GM vehicles.
AB 1755’s intention to expedite lemon law claims is NOT a generous favor to consumers. GM is working to shorten the timeline for lemon law claims for two key reasons:
1. Prey on Unsuspecting Consumers
For one, nearly every consumer who ends up with a lemon is in this situation for the first time. By shortening the timeline, it’s a safe assumption that many consumers will simply miss the deadline to file their lemon law claim and be out of luck.
Shorter timelines on lemon law claims would likely have the worst impacts on California consumers who are not proficient in English, economically disadvantaged, or are not up to speed on the state laws.
2. Protect Their Bottom Line
A shorter window to file lemon law claims means less valid lemon law claims.
A lemon law buyback is very expensive for automakers. If the vehicle meets the state’s qualifications, lemon law covers:
- Refund the cost of the vehicle
- Reimburse all official costs (registration, sales tax, etc.)
- Cover all incidental costs
- Pay for ALL the consumer’s attorney fees and court costs
Additionally, selling a defective vehicle is a mark against the manufacturer’s global brand reputation.
Make no mistake – passing AB 1755 is not as consumer-friendly as they make it sound.
How Will This Bill Impact Consumers?
Shorten the Statute of Limitations
AB 1755 would shorten the statute of limitations – which is currently 4 years – in CA to file a lemon law claim. Additionally, it would allow manufacturers to deduct negative equity from the refunds. This would likely trap consumers with defective vehicles. These new regulations would apply to a GM lemon law claim and any other vehicle.
This puts EVERYONE in danger on the roads.
Shift the Burden of Lemon Law Protection onto Consumers
One of the major items in AB 1755 is that consumers would need to personally notify manufacturers in writing about specific defects in their vehicles. This would need to be done prior to pursuing lemon law benefits.
This may sound like a small issue, but again, most consumers are not familiar with California lemon law. Most don’t even know it exists until they have a defective car. This places more responsibility on unsuspecting consumers – opening their door to all sorts of errors that could invalidate a lemon law claim.
What Consumers Can Do About Lemon Law Claims?
Unfortunately, Governor Gavin Newsom has signed the legislation – after admitting he had reservations about – and it will go into effect at the beginning of 2025.
If you’re reading the article, you may be dealing with a defective vehicle still covered by the warranty (likely for the first time). The best advice we can provide as California lemon law lawyers to is to act as quickly as possible.
Even if it’s a small hunch that something is off, get in touch with the manufacturer or dealership immediately to begin the repair process.
Here’s what you need to provide:
- A copy of your original manufacturer warranty – proving your vehicle is still covered.
- Tell the manufacturer or dealership representative exactly what seems off, being as descriptive as possible.
- The representative will direct to a certified repair facility to begin the repair process.
If you need help with this process, don’t hesitate to speak with a lemon law attorney. Most will be happy to provide advice.
What if the Repair Attempts Are Unsuccessful?
A vehicle must meet the qualifications of the Song-Beverly Consumer Warranty Act – to be legally ruled a lemon, including the following criteria:
- The vehicle is covered under the original manufacturer or dealership warranty when the defect was reported to the manufacturer; and
- The defect is substantial in that it impairs the vehicle’s safety, usability, or value; and
- The defect was not caused by driver abuse or error; and
- The manufacturer’s certified repair technicians have been given a reasonable number of repair attempts to fix the defect (usually two), of which were unsuccessful; or
- The vehicle has been out of service for repairs for 30 or more cumulative days.
If you have the documentation to prove your vehicle meets the guidelines above, get in touch with an experienced lemon law lawyer immediately to begin the claims process.
What’s The Next Step?
Auto manufacturers are constantly working to dismantle the benefits California lemon law applies to, both on a national and state level. These laws have been protecting consumers since 1975 – and it needs to stay this way.
As AB 1755 takes effect, the most important thing affected vehicle owners can do is act quickly and stay educated. These are your best defenses against being taken advantage of by automakers. More importantly, write to your state’s legislators to prioritize consumer protections. The louder your voices are, the more likely we can all protect the laws that protect us.
At Cline APC, we have a lot of experience in GM lemon law claims. Whether you’re having issues with your GM vehicle or need help with a Chevrolet lemon law claim, we’re happy to provide guidance.
For more information about AB 1755 or California’s lemon law, reach out to our team today for a FREE consultation.
