amicus njsba.com NJSBA to legislators: Bill forcing dealerships to notify consumers of recalls not really consumer protection bill

• A dealer cannot sell or transfer a used vehicle without first contacting or accessing information provided by the National Highway Traffic Safety Administration (NHTSA) to determine whether there are any open recalls on the specific vehicle and if there are, the dealer must provide the prospective purchaser with a printed copy of the recall information from that website;
• There shall be a conclusive presumption that a dealer had no knowledge of the existence of an open recall on a used vehicle if the dealer accesses the NHTSA's website and inputs the vehicle identification number of the automobile for sale, and finds no open recalls for the used vehicle;
• The dealer has no legal duty regarding the accuracy, errors, or omissions of the NHTSA's website;
• The dealer is not required to provide the prospective purchaser with any recall information that may be added to the NHTSA's website after the dealer has printed a copy of the recall information and provided it to the prospective purchaser of the used vehicle;
• An individual who suffers an ascertainable loss of moneys or property as a result of an unlawful practice engaged in by a car dealer may bring a consumer fraud action for compensatory damages. In cases of egregious violations, the court may award treble damages. The court may also award reasonable attorneys' fees in an amount of up to $1,000, or up to one third of the amount of damages awarded to the person in interest and the reasonable costs of suit. This creates an exception for car dealers under the Consumer Fraud Act, which does not place conditions on treble damages or limits on attorney's fees in any other action brought under the act.

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