#consumer protect

The Magnuson-Moss Warranty Act is a federal law enacted by Congress in 1975. The law protects consumers by regulating all products sold with a manufacturer’s warranty and costing at least $25. A warranty is a written document that guarantees a minimal product level of performance. If the product fails to meet the expectations outlined, buyers can use the warranty to exchange or return the item to the manufacturer.

Federal regulations require that all new cars come with a warranty and the Magnuson-Moss Act quickly became known as the “Lemon Law.” For many Americans, buying a car is one of the biggest financial purchases they will make and several states followed the Magnuson-Moss Act by passing their own lemon laws, further protecting consumers.

When a car has excessive or unexpected problems that are not due to any fault of the driver, it may be dubbed a lemon, meaning it is defective. Manufacturers are required to “buyback” lemon cars, freeing consumers from the debt.

The Department of Motor Vehicles (DMV) is responsible for maintaining car records and is often a first resource when a buyer feels they have purchased a lemon. Most state DMV websites provide information on how the lemon law relates to vehicle purchases and some even have a list of questions that can help clarify when a car is considered a lemon.

In some states, filing a complaint with the DMV is the first step to declaring a car a “lemon.”

It is important to know that the Magnuson-Moss Act does not usually apply to used vehicle purchases because warranties are not required. Therefore, consumers should be informed of local state laws when purchasing a used car and research the vehicle beforehand by obtaining a vehicle history report from the DMV.

To create a vehicle history report, the DMV compiles and makes public important information about each car using the Vehicle Identification Number (VIN).