The lemon law allows consumers to go back to the car dealer or manufacturer to get a replacement vehicle or return it if it has defects and can’t be repaired.
Newsom signed AB 1755 in September 2024 and said it aimed to speed up the resolution of lemon law claims and reduce litigation, according to his signing memo at the time. However, he said many automakers “expressed serious concerns that some of the specific procedures prescribed in AB 1755 are unworkable for them.”
“In light of those concerns, the authors have agreed to introduce a bill early in the 2025-2026 legislative session that would amend the statute enacted by this bill to make its new procedures subject to election by a given automaker,” wrote Newsom.
According to the text, AB 1755 required consumers to provide written notice to the manufacturer of a defective vehicle, demanding that the manufacturer repurchase or replace the motor vehicle, at least 30 days before taking legal action for restitution, among other requirements.
The new law, SB 26, delays the effective date of certain parts of AB 1755 from April 1 until July 1 of this year. It also gives automakers the choice of whether to participate in provisions of the law, and requires the state to post an online list of manufacturers who are participating.
Owners of defective cars who have notified the manufacturer are also required to give notice to prospective buyers if they choose to sell the vehicle, to ensure that they are aware of potential problems.
“Importantly, SB 26 will require notice to consumers who buy potential ‘lemons,’ helping prevent accidents that may kill or injure Californians due to a lack of awareness of vehicle defects,” Newsom wrote in a signing memo on April 2.
In the memo, the governor said SB 26 “should help reduce confusion in the marketplace.”
However, the governor said he remained concerned that AB 1755 “may not have struck the proper balance for all parties,” and he hoped the state legislature would revisit the measure “to assess whether the law is functioning for the public’s benefit.”
Many auto companies were in support of SB 26, including Tesla Motors, Rolls-Royce, Rivian, Mercedes-Benz, BMW of North America, Honda, Toyota, Volvo, Volkswagen, and Aston Martin.
The advocacy group Consumers for Auto Reliability and Safety opposed the measure, saying the group could not be certain if all auto manufacturers would opt out of the “harmful changes” made to the lemon law by AB 1755.
“Unfortunately, this bill fails to address any of the concerns raised by consumer organizations throughout California and across the nation that opposed AB 1755 because it drastically weakened protections for California lemon owners,” said the group in an opposition argument in a Senate Floor bill analysis.
