SB 983: Consumer warranty protection: express warranties.
- Session Year: 2021-2022
- House: Senate
- Latest Version Date: 2022-04-21
Existing law, the Song-Beverly Consumer Warranty Act, provides a comprehensive set of procedures for the enforcement of express and implied warranties on consumer goods, as defined. Under existing law, every manufacturer making an express warranty with respect to an electronic or appliance product, including televisions, radios, audio or video recording equipment, major home appliances, antennas, and rotators, with a wholesale price to the retailer of not less than $50 nor more than $99.99 is required to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 3 years after the date a product model or type was manufactured, regardless of whether the 3-year period exceeds the warranty period for the product. Existing law also requires every manufacturer making an express warranty with respect to an electronic or appliance product, as described above, with a wholesale price to the retailer of $100 or more, to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 7 years after the date a product model or type was manufactured, regardless of whether the 7-year period exceeds the warranty period for the product.
This bill would instead require the manufacturer of an electronic or appliance product, in the above-described circumstances and timeframes, to make available, on fair and reasonable terms, sufficient service literature, at no charge, and prescribed functional parts and tools, including documentation, tools, software and parts needed to disable the lock or function during the course of the diagnosis, maintenance, or repair of a product, to owners of the product, service and repair facilities, and service dealers. The bill would also require a service and repair facility or service dealer that is not an authorized facility or dealer of a manufacturer to provide a written notice containing specified information related to warranties to any customer seeking repair of an electronic or appliance product before the repair facility or service dealer repairs the product.
This bill would define terms for its purposes, and would provide that the above-specified provisions do not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, and parts on fair and reasonable terms. terms, and shall not be construed to require the distribution of a products source code.
Existing law authorizes a retail seller of consumer goods or an independent serviceman of consumer goods injured by the willful or repeated violation of the Song-Beverly Consumer Warranty Act to bring a legal action for the recovery of damages. Existing law provides that a court may award 3 times the amount at which actual damages are assessed plus reasonable attorneys fees.
This bill would additionally authorize a service dealer, as defined, to bring a legal action pursuant to the above provisions.
Existing law, the Song-Beverly Consumer Warranty Act, provides a comprehensive set of procedures for the enforcement of express and implied warranties on consumer goods, as defined. Under existing law, every manufacturer making an express warranty with respect to an electronic or appliance product, including televisions, radios, audio or video recording equipment, major home appliances, antennas, and rotators, with a wholesale price to the retailer of not less than $50 nor more than $99.99 is required to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 3 years after the date a product model or type was manufactured, regardless of whether the 3-year period exceeds the warranty period for the product. Existing law also requires every manufacturer making an express warranty with respect to an electronic or appliance product, as described above, with a wholesale price to the retailer of $100 or more, to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 7 years after the date a product model or type was manufactured, regardless of whether the 7-year period exceeds the warranty period for the product.
This bill would instead require the manufacturer of an electronic or appliance product, in the above-described circumstances and timeframes, to make available, on fair and reasonable terms, sufficient service literature, at no charge, and prescribed functional parts and tools, including documentation, tools, software and parts needed to disable the lock or function during the course of the diagnosis, maintenance, or repair of a product, to owners of the product, service and repair facilities, and service dealers.
This bill would define terms for its purposes, and would provide that the above-specified provisions do not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, and parts on fair and reasonable terms.
Existing law authorizes a retail seller of consumer goods or an independent serviceman of consumer goods injured by the willful or repeated violation of the above provisions Song-Beverly Consumer Warranty Act to bring a legal action for the recovery of damages. Existing law provides that a court may award 3 times the amount at which actual damages are assessed plus reasonable attorneys fees.
This bill would additionally authorize a service dealer, as defined, to bring a legal action pursuant to the above provisions.
Under existing law, every manufacturer making an express warranty with respect to an electronic or appliance product, including televisions, radios, audio or video recording equipment, major home appliances, antennas, and rotators, with a wholesale price to the retailer of not less than $50 nor more than $99.99 is required to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 3 years after the date a product model or type was manufactured, regardless of whether the 3-year period exceeds the warranty period for the product. Existing law also requires every manufacturer making an express warranty with respect to an electronic or appliance product, as described above, with a wholesale price to the retailer of $100 or more, to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 7 years after the date a product model or type was manufactured, regardless of whether the 7-year period exceeds the warranty period for the product.
This bill would instead require the manufacturer of an electronic or appliance product, in the above-described circumstances and timeframes, to make available, on fair and reasonable terms, sufficient service literature, at no charge, and prescribed functional parts and tools, including documentation, tools, software and parts needed to disable the lock or function during the course of the diagnosis, maintenance, or repair of a product, to owners of the product, service and repair facilities, and service dealers.
This bill would define terms for its purposes, and would provide that the above-specified provisions do not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, and parts on fair and reasonable terms.
Existing law authorizes a retail seller of consumer goods or an independent serviceman of consumer goods injured by the willful or repeated violation of the above provisions to bring a legal action for the recovery of damages. Existing law provides that a court may award 3 times the amount at which actual damages are assessed plus reasonable attorneys fees.
This bill would additionally authorize a service dealer, as defined, to bring a legal action pursuant to the above provisions.
(a)(1)Every manufacturer of an electronic or appliance product with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), shall make available to owners of the product, service and repair facilities, and service dealers, sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(2)For products with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), that contains an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(b)(1)Every manufacturer of an electronic or appliance product with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to owners of the product, service and repair facilities, and service dealers sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(2)For products with a wholesale price to the retailer of one hundred dollars ($100) or more, that contain an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(c)This section does not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, software, and parts on fair and reasonable terms.
(d)This section shall not be construed to require the distribution of a products source code.
(e)A service and repair facility or service dealer that is not an authorized facility or dealer of a manufacturer shall provide a written notice to any customer seeking repair of an electronic or appliance product before the repair facility or service dealer repairs the product that contains the following information:
(1)The service and repair facility or service dealer is not a manufacturer authorized or affiliated service dealer for the product.
(2)The consumer may wish to review the terms and conditions of any warranty for the equipment, as repairs not performed by a designated authorized repair provider could potentially affect the warranty.
(3)Warranties for consumer products are governed by the federal Magnuson-Moss Warranty Act (Chapter 50 (commencing with Section 2301) of Title 15 of the United States Code), which gives consumers rights and protections that apply over any conflicting provisions in the warranty.
(4)Under Magnuson-Moss, a warranty cannot require that maintenance and repairs be performed only by an authorized repair provider.
(5)Under Magnuson-Moss, if damage to equipment is shown to be caused by faulty nonbrand equipment or by faulty repair of a nonauthorized repair provider, that damage may not be covered by the warranty, but the warranty may otherwise remain in effect.
(d)(f)For purposes of this section, the following definitions apply:
(1)Electronic or appliance product or product means a product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code.
(2)(A)Fair and reasonable terms means at costs and terms that are equivalent to the most favorable cost and terms under which the manufacturer offers the part, tool, or documentation to an authorized service dealer, or to itself, if it does not have authorized service dealers, accounting for any discount, rebate, convenient and timely means of delivery, means of enabling fully restored and updated functionality, rights of use, or other incentive or preference the manufacturer offers to an authorized service dealer, or any additional cost, burden, or impediment the manufacturer imposes on an owner or independent service and repair facility or independent service dealer.
(B)For documentation, including any relevant updates, fair and reasonable terms also means at no charge, except that, when the documentation is requested in physical printed form, a charge may be included for the reasonable actual costs of preparing and sending the copy.
(3)Service dealers has the same meaning as defined in Section 9801 of the Business and Professions Code.
(4)Trade secret has the same meaning as set forth in subdivision (d) of Section 3426.1 of this code, or paragraph (9) of subdivision (a) of Section 499c of the Penal Code.
SEC. 2.Section 1794.1 of the Civil Code is amended to read:1794.1.(a)Any retail seller of consumer goods injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(b)Any independent serviceperson of consumer goods or service dealer, as defined in Section 9801 of the Business and Professions Code, injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(a)(1)Every manufacturer of an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), shall make available to owners of the product, service and repair facilities, and service dealers, sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(2)For products with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), that contains an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(b)(1)Every manufacturer of an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to owners of the product, service and repair facilities, and service dealers sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(2)For products with a wholesale price to the retailer of one hundred dollars ($100) or more, that contain an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(c)This section does not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, software, and parts on fair and reasonable terms.
(d)For purposes of this section, the following definitions apply:
(1)Electronic or appliance product or product means a product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code.
(1)(2)(A)Fair and reasonable terms means at costs and terms that are equivalent to the most favorable cost and terms under which the manufacturer offers the part, tool, or documentation to an authorized service dealer, or to itself, if it does not have authorized service dealers, accounting for any discount, rebate, convenient and timely means of delivery, means of enabling fully restored and updated functionality, rights of use, or other incentive or preference the manufacturer offers to an authorized service dealer, or any additional cost, burden, or impediment the manufacturer imposes on an owner or independent service and repair facility or independent service dealer.
(B)For documentation, including any relevant updates, fair and reasonable terms also means at no charge, except that, when the documentation is requested in physical printed form, a charge may be included for the reasonable actual costs of preparing and sending the copy.
(2)(3)Service dealers has the same meaning as defined in Section 9801 of the Business and Professions Code.
(3)(4)Trade secret has the same meaning as set forth in subdivision (d) of Section 3426.1, 3426.1 of this code, or paragraph (9) of subdivision (a) of Section 499c of the Penal Code.
SEC. 2.Section 1794.1 of the Civil Code is amended to read:1794.1.(a)Any retail seller of consumer goods injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(b)Any independent serviceperson of consumer goods or service dealer, as defined in Section 9801 of the Business and Professions Code, injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(a)(1)Every manufacturer making an express warranty with respect to of an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), shall make available to service and repair facilities sufficient service literature and functional parts owners of the product, service and repair facilities, and service dealers, sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(2)For products with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), that contains an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(b)(1)Every manufacturer making an express warranty with respect to of an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to service and repair facilities sufficient service literature and functional parts owners of the product, service and repair facilities, and service dealers sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product product.
(2)For products with a wholesale price to the retailer of one hundred dollars ($100) or more, that contain an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(c)This section does not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, software, and parts on fair and reasonable terms.
(d)For purposes of this section, the following definitions apply:
(1)(A)Fair and reasonable terms means at costs and terms that are equivalent to the most favorable cost and terms under which the manufacturer offers the part, tool, or documentation to an authorized service dealer, or to itself, if it does not have authorized service dealers, accounting for any discount, rebate, convenient and timely means of delivery, means of enabling fully restored and updated functionality, rights of use, or other incentive or preference the manufacturer offers to an authorized service dealer, or any additional cost, burden, or impediment the manufacturer imposes on an owner or independent service and repair facility or independent service dealer.
(B)For documentation, including any relevant updates, fair and reasonable terms also means at no charge, except that, when the documentation is requested in physical printed form, a charge may be included for the reasonable actual costs of preparing and sending the copy.
(2)Service dealers has the same meaning as defined in Section 9801 of the Business and Professions Code.
(3)Trade secret has the same meaning as set forth in subdivision (d) of Section 3426.1, or paragraph (9) of subdivision (a) of Section 499c of the Penal Code.
SEC. 2.Section 1794.1 of the Civil Code is amended to read:1794.1.(a)Any retail seller of consumer goods injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(b)Any independent serviceman serviceperson of consumer goods or service dealer, as defined in Section 9801 of the Business and Professions Code, injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
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Date
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Status
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|---|---|
| May 19, 2022 | May 19 hearing: Held in committee and under submission. |
| May 13, 2022 | Set for hearing May 19. |
| May 2, 2022 | May 2 hearing: Placed on APPR suspense file. |
| Apr 26, 2022 | Set for hearing May 2. |
| Apr 21, 2022 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 20, 2022 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 1. Page 3435.) (April 19). |
| Apr 7, 2022 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD. |
| Apr 6, 2022 | Set for hearing April 19. |
| Apr 4, 2022 | April 5 hearing postponed by committee. |
| Mar 22, 2022 | Set for hearing April 5. |
| Feb 23, 2022 | Referred to Coms. on JUD. and APPR. |
| Feb 15, 2022 | From printer. |
| Feb 14, 2022 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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