Imposes stricter requirements upon motor vehicle repair shops with respect to the disclosure of information to consumers

Summary of specific provisions

Under the bill, a description of the labor charges must appear on the estimate and invoice. Where the labor charge was based on a flat rate calculation, the estimate and invoice shall indicate the manual used. The invoice must also disclose whether any part and/or service is covered by a warranty or guarantee and the duration of the coverage. Additionally, an explanation must also be provided as to what the customer must do for the guarantee to be honored. Furthermore, the invoice must indicate whether rebuilt or reconditioned parts were supplied. The bill also establishes the right to a teardown estimate upon request, which would include the cost of the teardown, the price for putting the vehicle or component back together again and the time involved in doing the work. On the estimate, an explanation must appear as to what services or repairs deviate from the service schedule by the factory or accepted trade standards and a disclosure as to whether any work will be performed by any other repair shop. A description of current consumer rights regarding requesting an estimate, inspection of replaced parts and an explanation of the complaint process including the applicable statute of limitations shall be posted in the repair shop and on the invoice. Under the bill, when a repair shop issues a service or maintenance schedule to a customer recommending specific products or services, the service schedule must be appropriate for the make and model of the customer's motor vehicle. Finally, the bill stipulates that customers have a right to copies of service records, parts and purchase orders upon payment of a reasonable duplication fee.

Effects of present law which this bill would alter

Section 398-d of the Vehicle and Traffic Law is amended.

Justification

Unnecessary car repairs and maintenance services continue to be a major source of consumer complaints. The National Highway Traffic Safety Administration estimated ten years ago that consumers lost over $20 billion annually on unnecessary car repairs. It is estimated that nearly 40 cents of every dollar spent on car

repairs was wasted. The Center for Auto Safety concluded in 1990 that the findings of the National Highway Traffic Safety Administration were still accurate. Additionally, these type of complaints are among the top five consumer problems identified by the National Association for Consumer Agency Administrators and the Consumer Federation of America. Each year the Consumer Protection Board, the Department of Motor Vehicles ~d the Attorney General are flooded with consumer complaints. A US News and World Report survey found that many dealers routinely sell far more maintenance services than cars require, including unnecessary inspections, lubrications, adjustments, fluid replacement and unneeded spark plug and filter changes. This costs car owners thousands of dollars over the years of automobile ownership. In the investigation, approximately 80 percent of the service centers performed a list or schedule of services longer than the manufacturer's and 63 percent replaced parts that the factory said did not need to be replaced.

Frequently, service shops surreptitiously substitute their own elaborate service schedule for the factory's. While currently there are some remedies, most consumers are unaware of their rights. Although the existing statute requires that written estimates be furnished at the customer's request and prohibits charges greater than estimated without the customer's consent, many consumers do not know that they have the right to an estimate. Due to the lack of any provision in the current statute, consumers are also uninformed about the right to inspect replaced parts, the complaint process and the short period of time within which customers must file complaints. Thus, many victims of unfair and illegal treatment fail to file a report with the DMV in a timely fashion. Moreover, customers frequently cannot secure work and part orders and other records important to the diagnosis of their vehicle for an arbitration proceeding or lawsuit despite the fact that the repair shops are mandated by the DMV to maintain such records for a period of at least two years. The unfavorable publicity and surveys adversely affect the reputation of .honest shop operators. The provisions of this bill would not inflict undue hardship on honest repair shop owners. The reputations of the many reputable business people would be protected from the actions of the unscrupulous, who employ misleading advertising, charge for repairs not made or not needed and charge excessive prices for work actually performed.

Fiscal implications

None.

Effective date

This act shall take effect on the ninetieth day after it shall have become a law.