California Governor Signs Bill Mandating Transparency in Auto Retail Sales
What happened
Governor Gavin Newsom signed the California Combating Auto Retail Scams Act (CARS Act), Senate Bill 766, into law on September 25, 2026. The law aims to protect buyers and lessees from hidden costs, misleading terms, and predatory sales tactics in the auto market. The CARS Act requires dealerships to advertise the total price of vehicles and indicate which add-ons and features are optional. Furthermore, the bill establishes a first-in-the-nation three-day 'right to cancel' policy for vehicles priced under $50,000.
From nypost.com
Why it matters
The new law introduces significant operational standards for auto businesses operating in the state. It mandates price transparency and introduces a cooling-off period for purchases below a specific value. This legislation aims to codify consumer protections regarding the car buying experience in California.
From nypost.com
Who's involved
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The entities involved
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Bill Allen
American politician
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Gavin Newsom
40th governor of California since 2019
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