New Jersey already has one of the nation’s strongest Franchise Practices laws. That doesn’t mean there aren’t improvements that can be made to ensure New Jersey’s franchised new car and truck dealerships are protected from any potential manufacturer overreach. The New Jersey Franchise Practices Act was first passed in 1971 and has been amended several times over the past 52 years. NJ CAR is preparing legislation that would address several outstanding issues impacting dealers. The legislation would be aimed at protecting dealerships AND consumers by ensuring dealers are able to continue providing price competition for sale and service, as well as ready access to warranty and recall repair services to promote highway safety. The proposal grew out of a year-long discussion with the Executive Committee and the NJ CAR Franchise Practices Act Committee, which identified a number of franchise and recallrelated issues that required attention. NJ CAR began discussing the issue recently with Legislative Leaders and potential bill sponsors, who have expressed support for legislation would boost recall completion rates in New Jersey, improve highway safety, and foster competition in the new car and used car marketplace. The amendments NJ CAR has prepared will address a variety of issues important to dealers and consumers: • Prohibits the sale of unsafe used vehicles under a “stop sale” or “do not drive” recall. • Requires all used car dealers to check the National Highway Traffic Safety Administration (NHTSA) website (safercar.gov) for open recalls on a vehicle before it is sold. • Codifies the existing requirement for dealers to disclose whether a vehicle is subject to any open recall at the time of sale. • Provides a “safe harbor” defense to any consumer fraud claim, as long as the dealer checked the NHTSA website (safercar.gov) and found no recall on the vehicle before it was sold. The amendment also makes clear the dealer is not liable for any errors or omissions on the safercar.gov website and has no obligation to continue checking the website after the sale. NJ CAR Preparing Legislation to Strengthen Dealer Franchise Protections and Boost Recall Completion Rates BY JAMES B. APPLETON, PRESIDENT, NJ CAR continued on page 24 22 NEW JERSEY auto retailer
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