Every year, major corporations work behind the scenes to work around consumer rights. In California, the Alliance for Automotive Innovation—a coalition of auto manufacturers and key suppliers—successfully backed Senate Bill No. 71 (Umberg), a bill that reshapes where and how consumers can file Lemon Law claims. Signed into law by Governor Gavin Newsom on October 13, 2023, SB 71 officially took effect on January 1, 2024. Of the recent changes to California’s Lemon Law, this one is among the most damaging, posing a serious threat to both consumer justice and the protections the law was intended to provide.
California Lemon Law Changes Introduced by SB 71
It is crucial for consumers to understand the key changes introduced by the California legislative bill SB 71, its impact on consumer justice, and practical steps consumers can take if they have a lemon car.
SB 71 Timeline and Implementation
Senate Bill 71 was introduced by Senator Thomas Umberg and officially signed into law by Governor Gavin Newsom on October 13, 2023. The bill became effective on January 1, 2024, increasing the financial thresholds for small claims and limited civil court cases statewide. These changes are now fully in effect and continue to influence where—and how—consumers can file Lemon Law claims based on the value of their vehicle.
Shift in Financial Burden
If you’ve purchased a ‘lemon’ vehicle with persistent manufacturer defects, you may now be faced with significant legal expenses. The Senate Bill No. 71 shifts these financial burdens onto consumers, making it harder for them to seek justice.
Jurisdictional Limit Increase
Senate Bill No. 71 raises the jurisdictional limit of limited civil courts from $25,000 to $35,000. This means that for vehicles valued below $35,000, accessing California courts has become much harder, essentially limiting access to the wealthy. This change denies many consumers who bought defective vehicles access to the court system, which is funded by their taxes.
Removal of Legal Protections
In California, manufacturers pay for consumers’ attorney fees and court costs if they sold a lemon. SB 71 impacts this protection for consumers with vehicles valued under $35,000, leaving only the wealthiest with access to these legal rights. This significantly weakens the consumer protections provided by California’s lemon law.
Impact on Consumer Justice
Auto manufacturers aim to minimize their financial liability in lemon law claims by any means necessary. With SB 71, manufacturers have successfully reshaped the lemon law to their benefit, undermining consumer rights. The Alliance for Automotive Innovation argued that SB 71 would streamline litigation and reduce the burden on California’s court system. However, this effectively restricts regular citizens from accessing the courts, creating an unfair legal environment.
Navigating the New Legal Landscape
With the passage of SB 71—and in tandem with AB 1755 and SB 26—the legal process for resolving Lemon Law claims has become more complex. From new court thresholds to pre-litigation procedures and arbitration pressures, understanding your rights and responsibilities is critical. The following factors outline how these changes affect both consumers and manufacturers, and why legal support may be more essential than ever.
Manufacturer’s Responsibility
If you have a lemon vehicle, it is due to the manufacturer’s errors, not yours. Faulty manufacturing processes and poor quality control are to blame. Unfortunately, you may now bear more out-of-pocket costs to fix these issues.
When facing arbitration under SB 71 and want to understand the new legal steps required before even filing a lawsuit, be sure to read our breakdown of California legislative bill information on AB 1755 and SB 26. These assembly bills introduce pre-litigation notice rules, mandatory mediation, and strict timelines that can affect your eligibility for civil penalties.
Seeking Legal Assistance
For questions about the Senate Bill 71 and other changes to California’s lemon law, or to learn what you can do, contact a California lemon law attorney.
Steps to Take if You Have a Lemon Car
If you’re dealing with a defective vehicle, knowing how to document your case and navigate early resolution options is essential—especially under the new legal changes introduced by SB 71. The following steps can help strengthen your position, protect your rights, and prepare you for either arbitration or litigation.
Record Keeping
It’s crucial to keep detailed records of all repair attempts, communications with the manufacturer, and any related expenses. Accurate documentation supports your case in arbitration or litigation.
Certified Mail Communication
When communicating with the manufacturer, use certified mail with a return receipt requested to ensure there’s a verifiable record of all correspondence.
Exploring Arbitration
Check if the manufacturer offers an arbitration program, which can be a preliminary step before hiring a lawyer. This information is usually available in the vehicle’s owner manual or through the California Bureau of Automotive Repair Hotline.
Push Towards Arbitration
With the changes introduced by Senate Bill 71, consumers may find themselves pushed towards arbitration as an initial step before pursuing litigation. This shift can be due to increased legal expenses and limited access to the court system, especially for vehicles valued below $35,000.
Potential Drawbacks of Arbitration in Lemon Law Cases
While arbitration is often presented as a quicker, less formal alternative to litigation, it comes with trade-offs that can disadvantage consumers—especially those unfamiliar with the process. Before agreeing to arbitration for a Lemon Law claim, it’s important to weigh the limitations, risks, and legal implications outlined below.
Limited Compensation
One significant drawback of arbitration is that the compensation awarded may be less than what is allowed under the California Lemon Law. Consumers might not receive the full extent of remedies they would be entitled to through litigation, potentially leaving them with insufficient compensation for their defective vehicle.
Prolonged Process
While arbitration is generally faster than court proceedings, it can still become a prolonged process. Consumers might find themselves stuck in arbitration for an extended period, delaying the resolution of their case. This can be particularly frustrating for those who need a quick resolution to address the issues with their vehicle.
Limited Discovery
The arbitration process has limited discovery rules, which can make it more challenging for consumers to gather and present evidence. This limitation can hinder the ability to build a strong case compared to the broader discovery process available in court. Without access to all necessary evidence, consumers may find it difficult to prove their claims effectively.
Non-Binding Decisions
In California, arbitration decisions are not binding for consumers. This means that if the arbitration outcome is unfavorable, the consumer can still pursue litigation. While this offers a second chance, it also means additional time and resources spent on resolving the dispute. Consumers may end up facing prolonged legal battles and increased expenses, which can be a significant burden.
By understanding these potential drawbacks, consumers can make more informed decisions about whether to pursue arbitration or seek other legal avenues to resolve their lemon law claims. For further guidance, consulting with a California lemon law attorney can provide clarity and help navigate the complexities of these cases.
Have a lemon car in California? Contact Lemon Law Firm today!
Worried you might be affected? Don’t worry—contact us today for a free case evaluation. At LemonLawFirm.com, we fight to get you the compensation you deserve.
Official Sources & References
- SB 71 Legislative Bill Text — Official California Legislature Information – SB-71 Jurisdiction: Small claims and limited civil case. (2023-2024)
https://leginfo.legislature.ca.gov/faces/billText - SB 71 (Umberg) – Small Claims and Limited Civil Case – SUPPORT — Manufacturer Lobby support letter for SB 71 from the Alliance for Automotive Innovation — highlighting how major automakers shaped this policy.
https://carconsumers.org/pdf/Umberg_SB71_Alliance_for_Automotive_Innovation_support_8-23-23.pdf - CA Department of Consumer Affairs – Arbitration Certification Program — Arbitration programs and how they fit into California’s Lemon Law system.
https://www.dca.ca.gov/acp/index.shtml - New Lemon Law Procedures (2025 Updates) – Latest procedures required under California Lemon Law, involving changes regarding AB 1755 and SB 71.
https://www.dca.ca.gov/acp/new_lemon_law.shtml