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Assembly advances overhaul of used-car sales: 3‑day cooling-off period and clearer pricing rules
Summary
Lawmakers advanced SB 766, a bipartisan rewrite of consumer protections for car buyers and lessees that would require clearer price disclosure, prohibit deceptive add‑on charges and create a three‑day cooling‑off period for many used‑car purchases under $50,000.
Sen. Anthony Portantino (presenting SB 766 on behalf of Senator Allen) and committee staff described major bipartisan changes to state law intended to curb deceptive pricing and give some used‑car buyers a short, post‑sale right to return vehicles under specified conditions.
The amended measure would prohibit misrepresentations about price, require dealers to disclose total price and optional add‑ons, prohibit misleading claims of government affiliation (with added protections for military/veterans), and create a limited three‑day cooling off window for used vehicles below a $50,000 cap with mileage limits and a possible restocking fee. Supporters said the bill emulates parts of the Federal Trade Commission’s CARs rule and could save consumers money and hours spent haggling.
Consumer groups including Consumers for Auto Reliability and Safety, the Consumer Federation of California, National Consumer Law Center and others testified in favor, citing real cases of buyers misled about safety or rust. Rosemary Shahan of Consumers for Auto Reliability and Safety described pooled data estimating large annual consumer savings from CARs-like protections and said the bill would allow consumers to seek refunds without costly litigation in many cases.
Opposition moved to neutral following late amendments. The California New Car Dealers Association, Carvana, CarMax, Insurance Auto Auctions and other dealer groups and industry representatives said they had negotiated amendments and would move from opposition to neutral; county and industry witnesses thanked staff for help finalizing changes. Committee members praised the cross-stakeholder agreement and said the measure sets a national-model standard for used-car consumer protections.
The committee called the roll and recorded votes after extensive testimony. Members said the bill had broad support after last-minute negotiations; staff and authors noted transportation and local implementation details would be handled through regulations and local oversight.
Outcome and next steps: motion to pass as amended to Appropriations was recorded; the committee left the roll open for absent members but later reported a roll in favor and sent the measure to Appropriations with committee amendments. The bill’s supporters and many formerly opposed industry groups said they had agreed to the current text and urged the committee’s aye vote.
