The California Lemon Law has undergone its most significant procedural overhaul in years. Assembly Bill 1755 (AB 1755), signed in 2024, introduces new timelines, pre-litigation requirements, and dispute resolution protocols for Lemon Law claims. Senate Bill 26 (SB 26), passed shortly after, modifies and clarifies several aspects of AB 1755. Together, they reshape how consumers pursue compensation for defective vehicles starting in 2025.
What Is AB 1755?
AB 1755 was designed to streamline Lemon Law litigation and reduce court congestion by mandating early-stage dispute resolution. However, its enforcement only applies to auto manufacturers that voluntarily opt in for a five-year period.
Key elements include:
- Mandatory mediation
- Required pre-litigation written notice
- Streamlined discovery rules
- Shortened response timelines
- New statute of limitations
- Sanctions for non-compliance
Key Provisions of AB 1755
1. Pre-Suit Written Notice
Consumers must send a written demand to the manufacturer of the defective vehicle—at least 30 days before filing a lawsuit. This demand must include:
- Consumer’s contact info
- VIN
- Repair history summary
- Request for repurchase or replacement
- Confirmation of continued vehicle possession for 30+ days after notice
2. Mandatory Mediation
If the manufacturer responds, both parties must engage in mediation within 90–150 days of the manufacturer’s response.
3. Streamlined Discovery
- Initial document exchange required within 60 days of response
- Additional discovery paused until after mediation
- Depositions limited to 2 hours and specific scope
4. Strict Timelines
- Manufacturers must respond to repurchase/replacement demands within 30 days
- Resolution must be completed within 60 days
- Daily penalty of $50 for missed deadlines
5. New Statute of Limitations
- Suit must be filed within 1 year of warranty expiration
- Absolute deadline: 6 years from original vehicle delivery (some tolling allowed)
What Is SB 26?
SB 26 acts as a legislative refinement of AB 1755. Signed in April 2025, it adjusts rollout timing, introduces manufacturer opt-in procedures, and defines resale disclosure rules.
Key additions from SB 26:
- Delays the pre-suit notice requirement’s effective date to July 1, 2025 (originally April 1)
- Requires DCA to publish an annual list of opted-in manufacturers by Dec 15
- Mandates disclosure of ongoing Lemon Law disputes to future buyers if vehicle is sold
- Limits civil penalties unless buyer was informed in writing before the sale
How These Laws Affect Consumers with Lemon Cars
- If your vehicle’s manufacturer opts in:
- You must follow the pre-suit notice, mediation, and documentation procedures to preserve your legal rights
- Skipping steps can disqualify you from receiving civil penalties
- If your manufacturer does NOT opt in:
- Traditional Lemon Law procedures apply, but without the new timelines or streamlined rules
- If you’re selling a lemon vehicle:
- You are legally obligated to disclose pending Lemon Law claims to the buyer
California Lemon Law Claims in 2025
- Use certified mail with tracking when submitting your 30-day notice
- Maintain possession of your vehicle for the full 30 days after notice delivery
- Document all repairs, communications, and timelines precisely
- Check DCA’s public opt-in list before initiating a claim
- Retain legal counsel early if your vehicle is valued under $35,000 (due to SB 71 court restrictions)
Conclusion
Both, AB 1755 and SB 26 significantly alter the enforcement landscape of lemon law in California. While they introduce safeguards and structure, they also impose strict procedural requirements that can weaken a consumer’s case if mismanaged. Even if you follow every new step under AB 1755 and SB 26, your ability to pursue compensation may still be limited depending on your vehicle’s value. Under SB 71, Lemon Law claims involving vehicles worth $35,000 or less may be forced into limited civil courts—where discovery is restricted, expenses are harder to recover, and legal outcomes can be less favorable for consumers. Awareness and preparation are now essential.
Need Help? Contact LemonLawFirm.com for expert support. We’ll help you navigate these legal changes and get the compensation you deserve.