Oregon amends consumer protection laws to prevent deceptive sales practices

The Oregon State Legislature introduced House Bill 3178 on April 4, 2025, aiming to enhance consumer protection in the automotive sales sector. The bill primarily addresses issues related to the sale and leasing of motor vehicles, particularly focusing on the transparency of financial agreements and the responsibilities of sellers.

Key provisions of HB 3178 include requirements for sellers to provide clear written notices to buyers regarding the status of financing agreements. If a lender does not agree to purchase a retail installment contract or lease agreement within 14 days of the buyer taking possession of the vehicle, the seller must notify the buyer. This notice must include a reasonable charge per mile for the use of the vehicle, which cannot exceed the federal rate for business expense deductions. Additionally, if a buyer attempts to return the vehicle within five days of receiving such a notice but cannot do so due to the seller's unavailability, the seller is prohibited from imposing charges.

The bill also amends existing laws regarding unlawful business practices, expanding the definitions of deceptive practices in the sale of goods and services. This includes prohibitions against misleading representations about the quality, origin, and condition of vehicles sold.

Debate surrounding HB 3178 has highlighted concerns from both consumer advocacy groups and automotive dealers. Proponents argue that the bill is essential for protecting consumers from potential exploitation and ensuring fair practices in vehicle sales. Critics, however, express worries that the additional regulations could impose burdensome requirements on dealers, potentially leading to higher costs for consumers.

The implications of HB 3178 are significant, as it seeks to create a more transparent automotive market in Oregon. Experts suggest that if passed, the bill could lead to increased consumer confidence in vehicle transactions, while also prompting dealers to adopt more rigorous compliance measures. The bill is currently under review, with discussions expected to continue in the coming weeks as stakeholders weigh the potential impacts on the automotive industry and consumer rights.