California Assembly Bill AB1875

California 2021-2022 Regular Session

• Introduced: 2/8/22
• Refer: 2/18/22

Caption

Song-Beverly Consumer Warranty Act: alarm companies.

Impact

The proposed amendments would change the title and enforcement conditions under which service contracts are offered by alarm companies. By exempting these companies from the obligations usually required under the Song-Beverly Consumer Warranty Act, the bill intends to facilitate easier operational conditions for these businesses. Supporters argue that this will help prevent unnecessary regulatory burden that could inhibit performance and service delivery in the alarm industry, thereby promoting business efficiency and potentially lowering costs for consumers.

Summary

Assembly Bill 1875, introduced by Assembly Member Flora, seeks to amend specific sections of the Civil Code pertaining to the Song-Beverly Consumer Warranty Act. The primary goal of this legislation is to exempt alarm companies that are subject to the Alarm Company Act from certain provisions of the Warranty Act. This amendment arises from the recognition that alarm companies are already regulated under their own distinct framework and thus do not require the same level of oversight concerning service contracts as other businesses might. The changes aim to streamline regulations and reduce redundancy for companies within the alarm services sector.

Contention

Opposition to AB1875 might arise from consumer advocacy groups concerned about the potential reduction of consumer protections that the Warranty Act provides. By allowing exemptions, there could be fears that buyers of alarm-related service contracts might not receive the same level of transparency regarding their cancellation and refund rights as guaranteed under existing laws. Detractors may argue that such changes could lead to unfavorable outcomes for consumers, particularly if alarm companies are free to set their own terms without the stringent disclosure requirements established by the Warranty Act.