October 02, 2026

California Consumer Watchdog Agency Applauds CARS Act Going into Effect, Delivering Strongest Car-Buying Protections in the Nation

WHAT YOU NEED TO KNOW: The CARS Act, modeled after the Federal Trade Commission’s CARS Rule, will save California car buyers at least $234 million and 8.5 million hours each year with new, first-in-the-nation consumer protections.

Sacramento –California’s Business and Consumer Services Agency (BCSA) applauded SB 766, also known as the CA CARS Act, going into effect today. The bill will deliver the strongest car-buying protections in the nation, saving car buyers time and money and solidifying California’s leading role in protecting consumers.

“Starting today, Californians will enjoy the strongest car-buying protections in the nation. We are eradicating junk fees and bait-and-switches that cost families big money,” said Rohit Chopra, Secretary of the California Business and Consumer Services Agency. “As federal regulators watch from the sidelines as consumers get gouged, California is charting a different path.”

Secretary Chopra formerly served as a Commissioner on the Federal Trade Commission (FTC), where he advocated for stronger consumer protections for auto sales and finance. In 2023, the FTC finalized a rule, but the Trump administration abandoned these commonsense reforms. However, these reforms were codified into law after Governor Newsom signed SB 766.

The CARS Act will:

  • Require car dealers to disclose the “total price” up front and in advertising including any add-on items installed by the manufacturer, making the actual “off the lot” prices more transparent and encouraging competition.
  • Prohibit dealers from requiring the purchase of add-on items that were not installed by the manufacturer.
  • Require dealers to disclose at the time of sale or lease that add-on items not installed by the manufacturer are optional.
  • Ban car dealers from charging extra for add-ons that don’t benefit car buyers, such as lifetime oil changes or catalytic converter markings for electric vehicles.
  • Create a new first-in-the-nation right to return a used vehicle that cost $50,000 or less within 3 calendar days for any reason for a full refund, minus a reasonable restocking fee.

Experts estimate that the bill’s provisions requiring price transparency and banning worthless add-ons will save California car buyers $234 million annually and 8.5 million hours that would otherwise be spent haggling and navigating the unnecessarily burdensome car-buying process.

Auto-related issues consistently rank as the nation's top consumer complaint category. In 2023, the FTC received 162,000 consumer complaints about unfair and deceptive sales practices related to car-buying. In FTC and State of Illinois vs. North American Automobile Services, it was revealed that 83 percent of consumers were charged for unauthorized add-on products or services — or were deceived into believing they were mandatory.

The new Business and Consumer Services Agency is working to protect consumers and lower costs by strengthening oversight, improving coordination across departments, and ramping up enforcement actions across sectors that touch the daily lives of Californians. As the federal government weakens consumer protection and hurts Americans by engaging in corruption and backsliding, California is leading the way to create a strong backstop and deliver a fair economy for all.

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