Requires dealerships to notify buyers of recalls on used motor vehicles for sales; limits attorneys' fees in certain consumer actions.
Should S1199 be enacted, it will facilitate significant changes to existing consumer protection laws surrounding vehicle sales. Specifically, it will amend the Consumer Fraud Act to outline the legal obligations of dealers in disclosing recall information. While this aims to enhance consumer safety and transparency, it places a legal duty on dealers that may result in increased operational costs, particularly for smaller dealerships. Additionally, the bill provides legal recourse for individuals who suffer financial losses due to improper dealership practices, allowing for compensatory damages, which could have implications for motor vehicle dealership practices across the state.
Senate Bill S1199 aims to enhance consumer protections in the sale of used motor vehicles by requiring dealerships to notify potential buyers of any outstanding recalls associated with a vehicle. The bill mandates that a dealer must check with the National Highway Traffic Safety Administration (NHTSA) before selling a used vehicle to determine if there are any unaddressed recalls. If such a recall exists, the dealer is required to inform the buyer and provide written documentation of the recall status prior to finalizing the sale. This initiative seeks to ensure consumer safety by preventing the sale of vehicles that pose a safety risk due to unresolved recalls.
The bill may face contention regarding the practicality and financial implications of its implementation. Some industry stakeholders could argue that the requirement to confirm the recall status of each vehicle sold may impose undue burdens on dealerships, particularly in terms of time and resources. Additionally, the stipulation that a dealer can presuppose ignorance of a recall if they have accessed the NHTSA’s records may spark concerns regarding accountability, as this presumption provides a level of protection to dealers that could potentially be exploited. Thus, the conversation surrounding this bill could become contentious among consumer advocates and dealership associations as they navigate the balance between consumer safety and business operations.