Starting January 1, 2025, Californians with defective vehicles may experience quicker resolution of their lemon law disputes, thanks to a new law signed by Governor Gavin Newsom. The legislation, supported by General Motors but opposed by Tesla, Toyota, and other major automakers, aims to streamline the legal process for consumers seeking remedies for defective cars under the state’s lemon laws.
The new bill requires consumers to notify manufacturers when seeking a vehicle replacement or repurchase, setting clear timelines for manufacturers to act. It also reforms the court’s discovery process to reduce time-consuming legal battles and introduces mandatory mediation in an effort to settle disputes early.
Governor Newsom praised the bill for addressing growing court backlogs, as nearly 10% of civil filings in Los Angeles County in 2023 were related to lemon law cases. General Motors, facing the most lemon law cases in the state, supported the law, which is expected to ease the burden on California courts.
However, several automakers, including Tesla, Mercedes-Benz, Toyota, and consumer advocacy groups, opposed the measure. Critics argue that the new procedures could exacerbate existing challenges for consumers and courts, while benefiting attorneys involved in these cases.
Newsom urged legislators to amend the law in the next session to allow automakers to choose between the old and new processes, as well as address unresolved issues around electric vehicles and automotive technology.
This reform follows California’s long-standing lemon laws, which have provided consumers legal recourse for defective vehicles since the 1970s. The newly signed law marks a significant update to these protections, reflecting the changing automotive landscape and an increase in court cases post-COVID-19.
