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History
- Referred to codes
- Referred to codes
Full text
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Sponsor's memo
Title of bill
An act to amend the civil practice law and rules and the general business law, in relation to tampering with odometers of motor vehicles
Summary
Section 392-e of the General Business Law would be amended to provide that any person, firm, partnership or corporation who, with intent to defraud, either gives a false statement to a transferee or executes and delivers a false written statement required in such transfer, shall be guilty of a class A misdemeanor for a first offense involving only one automobile or shall be guilty of a class E felony for any subsequent offense or for an offense involving more than one vehicle. A new subdivision three is added to such law to provide the same penalties for a person who, with intent to defraud, actually disconnects or changes an odometer to indicate a lesser mileage thereon. Old subdivisions 3 and 4 are renumbered 4 and 5 respectively. A new subdivision 6 is added to such law which would give rise to a private right of action for actual damages or $500, whichever is greater. In cases of intentional misrepresentation, fraud or deceit, treble damages or $1,500 would be awarded to a prevailing plaintiff. The court in its discretion, may award costs and reasonable attorney's fees to a prevailing plaintiff. Additionally, the attorney general would be authorized to pursue an action or proceeding on behalf of the people of the Stat e of New York to seek restitution, damages, penalties and costs.
Justification
The seriousness of odometer tampering is far too often overlooked. A properly maintained odometer provides a consumer with the best indicia of the remaining useful life of an automobile and the impending or existing need to service or replace various equipment and systems in the vehicle. Odometer tampering threatens consumer's economic well-being as well as their physical well-being. Based upon available data, it has been determined that for every 10,000 miles that a vehicle's odometer is altered, there is a $300 to $500 increase in the retail value of the vehicle, depending on the model. The average rollback is rarely less than 20,000 miles and averages approximately 40,000 miles, which means that the average profit as a result of a rollback is approximately $1,200 to $2,000 per vehicle. It is estimated that 102,000 to 142,000 vehicle odometers are rolled back each year in New York State alone with an economic loss to New York State consumers of $127.5 to $177.5 million dollars per year. Although the attorney general is presently authorized to proceed against any person engaged in repeated fraudulent or illegal acts under Section 63(12) of the executive law, this bill would explicitly specify such authority in odometer tampering cases and close a legal loophole. Since present law in New York addresses transferors only, individual officers or directors of a corporation are not personally liable for violations. Thus, if a corporation that has violated the law becomes insolvent or bankrupt, the individuals involved in the direction and operation of the company are immune from liability. By making odometer tampering a criminal offense, the directors or officers would be personally liable for violations if they knew or had reason to know of such violations and could not hide behind the corporate veil. Additionally, by providing for a private right of action and damages or minimal awards, the violator will be required to make the aggrieved party whole regardless of whether it can be proved that the defendant actually intended to defraud anyone. In other words, an individual, partnership, firm or corporation would be civilly liable for odometer tampering by proof of the tampering alone. It is time that this crime was recognized for the serious theft and fraud that it is.
Read the full memo (656 words)
Fiscal implication
None.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.