Vehicle Warranty Bill Introduced in California Assembly

A bill has been introduced in the California Assembly to require motor vehicle dealers in the state to deliver to the buyer of a motor vehicle, at the time of sale, a statement that outlines the owner’s rights under the federal Magnuson-Moss Warranty Act.

The bill states it is illegal for a dealer to deny warranty coverage because the owner had routine maintenance or repairs performed by someone other than the franchised dealer. Further, the proposed legislation spells out it is illegal for companies to void a warranty, or to deny coverage under the warranty, because the vehicle owner used an aftermarket or recycled part.

“If it turns out that the aftermarket or recycled part was itself defective or wasn’t installed correctly and it causes damage to another part, that is covered under the warranty; the manufacturer or dealer has the right to deny coverage for that part and charge you for any repairs,” the bill reads. “The Federal Trade Commission says the manufacturer or dealer must show that the aftermarket or recycled part caused the need for repairs before denying warranty coverage.”

The bill has the backing of California Automotive Wholesalers’ Association (CAWA) and the Auto Care Association.