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Committee advances bill to cap and clarify fees charged by DMV business partners
Summary
AB 1190 would cap fees charged by third-party vendors that provide services also available directly via the DMV; the committee passed the bill as amended to Appropriations after the author and consumer groups cited a consumer complaint about a spoofed DMV site charging a $72 premium.
Assemblymember Haney introduced AB 1190 to limit fees charged by non‑DMV vendors that provide the same services the Department of Motor Vehicles offers online. The bill would cap third-party charges at no more than 5% above the DMV’s own fee for equivalent services and require clear, prominent links to the official DMV website and a disclosure that some services are available directly from DMV.
Alan Peterson described how a website that mimicked the DMV charged an extra $72 and then refused to process a cancellation; he told the committee the vendor threatened legal action when he sought a refund. Robert Harrell of the Consumer Federation of California, the bill’s sponsor, said many private sites "are literally spoofing the DMV website" and that consumers are being misled and overcharged.
Members raised technical questions about whether the bill would affect dealers and first‑tier partners; the author and committee staff said the bill is intended to target publicly facing second‑tier vendors that interface directly with consumers and spoof DMV services, not franchise dealers or primary contractors. The committee passed AB 1190 as amended to Appropriations.
