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Assembly committee advances SB 766 after months of negotiation; bill would create 3‑day used‑car cooling‑off and tighten advertising rules
Summary
The Assembly Consumer Protection and Privacy Committee voted to move SB 766 — a bill that would codify FTC car‑sale protections and create a three‑day cooling‑off period for many used cars — to Appropriations after late negotiations produced broad stakeholder agreement.
The Assembly Consumer Protection and Privacy Committee voted to send SB 766 to the Appropriations Committee after the author and stakeholders negotiated amendments that won broad support from consumer advocates and many dealer groups.
Senator Allen, the author, said the bill codifies the FTC’s CARS rule into state law and adds consumer protections for used‑car purchasers, including a three‑day cooling‑off period for used cars under $50,000 that does not require the buyer to prepay for a return option. The bill would also cap permitted test‑drive mileage during the cooling‑off period and allow a restocking fee.
Supporters from consumer groups, including Consumers for Auto Reliability and Safety, the Consumer Federation of California and other consumer advocates, said the changes will save buyers money and provide an easier path to recoup funds when vehicles contain undisclosed safety defects. Rosemary Shahan, president of Consumers for Auto Reliability and Safety, told the committee the FTC‑style provisions could save car buyers billions nationally and prevent dangerous vehicles from remaining on the road.
Industry witnesses said they negotiated in good faith; several large dealer groups and online used‑car firms said they would move from opposition to neutral after the late amendments addressed key concerns. Several dealer representatives and used‑car platforms were thanked on the record for working with the author and committee staff to reach a consensus.
Key points in the amended bill: clearer total‑price advertising; prohibition on charging for add‑ons that do not benefit consumers; specific protections for active‑duty military and veterans about misrepresenting affiliation; a capped three‑day cooling‑off window for vehicles under $50,000 and limits on mileage during the return period; and a prohibition on deceptive claims about government or military affiliation.
Outcome: The committee approved the bill as amended and moved it to Appropriations. Committee members said the final language reflected weeks of negotiations and represented a compromise between consumer interests and industry concerns.
