California’s CARS Act Targets Hidden Fees in Auto Sales – New Protections for Buyers
California has enacted new legislation to curb deceptive practices and hidden fees in the automotive retail sector. The Combating Auto Retail Scams (CARS) Act, also known as SB 766, became effective on October 1, 2026, aiming to increase transparency for consumers purchasing or leasing vehicles. This new law addresses long-standing concerns about misleading pricing and undisclosed charges, particularly in an era of high vehicle costs. It mandates clear disclosure of the ‘Total Price’ and prohibits the sale of add-on products that offer no tangible benefit.
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