SB-766 • 2026

California Combating Auto Retail Scams

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Allen
Last action: 2025-10-06
Official status: Chaptered by Secretary of State. Chapter 354, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The official source material did not provide specific details about the effectiveness date beyond stating it would be operative from October 1, 2026. The candidate explanation included this detail which was removed as it could be speculative without further context.

California Combating Auto Retail Scams (CARS) Act

This law makes it illegal for car dealers to mislead customers about vehicle costs, availability, and terms. It also requires clear disclosures and a three-day cancellation period.

What This Bill Does

Defines what 'vehicle' and 'used vehicle' mean in the context of this act.
Makes it against the law for dealers to lie about important information related to buying or leasing cars, such as costs and terms.
Requires dealers to clearly show all charges and add-on products when selling a car.
Prohibits dealers from charging extra fees if customers do not benefit from them.
Replaces an old cancellation agreement with a new three-day right to cancel the purchase or lease.

Who It Names or Affects

Car buyers in California
Used car dealers in California

Terms To Know

Misrepresentation: When someone lies about important information, like costs or availability of a product.
Add-on products: Extra items that dealers might try to sell along with the car, such as extended warranties.

Limits and Unknowns

The law does not apply to vehicles sold at auctions.
It is unclear how strictly dealers will follow these new rules.

Bill History

2025-10-06 California Legislative Information
Chaptered by Secretary of State. Chapter 354, Statutes of 2025.
2025-10-06 California Legislative Information
Approved by the Governor.
2025-09-22 California Legislative Information
Enrolled and presented to the Governor at 11 a.m.
2025-09-11 California Legislative Information
Assembly amendments concurred in. (Ayes 30. Noes 8. Page 2894.) Ordered to engrossing and enrolling.
2025-09-10 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-10 California Legislative Information
Read third time. Passed. (Ayes 76. Noes 1. Page 3169.) Ordered to the Senate.
2025-09-05 California Legislative Information
Ordered to third reading.
2025-09-05 California Legislative Information
Read third time and amended.
2025-08-29 California Legislative Information
Ordered to third reading.
2025-08-29 California Legislative Information
Read third time and amended.
2025-08-18 California Legislative Information
Read second time. Ordered to third reading.
2025-07-17 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-07-16 California Legislative Information
From committee: Do pass as amended. (Ayes 11. Noes 0.) (July 16).
2025-07-14 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on P. & C.P.
2025-07-02 California Legislative Information
From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 9. Noes 1.) (July 1). Re-referred to Com. on P. & C.P.
2025-07-02 California Legislative Information
Coauthors revised.
2025-06-26 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-06-13 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-06-11 California Legislative Information
June 17 hearing postponed by committee.
2025-06-09 California Legislative Information
Referred to Coms. on JUD. and P. & C.P.
2025-06-03 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-02 California Legislative Information
Read third time. Passed. (Ayes 27. Noes 9. Page 1377.) Ordered to the Assembly.
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-05-23 California Legislative Information
From committee: Do pass as amended. (Ayes 5. Noes 1. Page 1212.) (May 23).
2025-05-20 California Legislative Information
Set for hearing May 23.
2025-05-19 California Legislative Information
May 19 hearing: Placed on APPR. suspense file.
2025-05-09 California Legislative Information
Set for hearing May 19.
2025-05-01 California Legislative Information
Read second time and amended. Re-referred to Com. on APPR.
2025-04-30 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 943.) (April 29).
2025-04-11 California Legislative Information
Set for hearing April 29.
2025-04-10 California Legislative Information
Read second time and amended. Re-referred to Com. on JUD.
2025-04-09 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 9. Noes 3. Page 711.) (April 8).
2025-03-25 California Legislative Information
Set for hearing April 8.
2025-03-12 California Legislative Information
Referred to Coms. on TRANS., JUD., and APPR.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 766, Allen.
California Combating Auto Retail Scams (CARS) Act.
Existing law governs motor vehicle conditional sale contracts, as defined, and requires a seller, prior to the execution of a conditional sale contract, to make certain disclosures to the buyer, including a description and the price of each item sold if the contract includes a charge for the item, and the sum of all of those charges.
Existing law prohibits a dealer from selling specified used vehicles at retail to an individual for personal, family, or household use without offering the buyer a contract cancellation option agreement that allows the buyer to return the vehicle without cause. Existing law sets forth certain requirements for the contract cancellation option agreement, including prescribing the purchase price for the contract cancellation option and requiring specified disclosures.
This
bill would enact the California Combating Auto Retail Scams (CARS) Act. The bill would define the terms “vehicle” and “used vehicle” for these purposes. The bill would make it a violation of the act for a dealer to make any misrepresentation regarding material information about specified matters relating to the vehicle sale, including the costs or terms of purchasing, financing, or leasing a vehicle, the availability of vehicles at a total price communicated by the dealer, and the remedy available if a dealer fails to sell or lease a vehicle at the total price, as defined. The bill would also make it a violation of the act for a dealer to fail to make certain disclosures clear and conspicuous, including specified information relating to the total price and any add-on products or services, and
would exempt from that provision a used vehicle sold at an auction, as defined. The bill would make it a violation of the act for a dealer, in connection with the sale or financing of a vehicle, to charge for certain items, including an add-on product or service if the vehicle purchaser or lessee would not benefit from the add-on product or service. The bill would repeal the above-described contract cancellation option agreement requirement and would instead prohibit a dealer from selling or leasing specified used vehicles without providing the purchaser or lessee a 3-day right to cancel the purchase or lease, as provided. The bill would require a dealer to create and retain, for a period of 2 years from the date the record is created, all records necessary to demonstrate compliance with the act, including specified records.
The bill would make its provisions operative on October 1, 2026.
The bill would make related
conforming changes.

Current Bill Text

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