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California CARS Act Takes Effect Oct. 1: Clear Car Pricing Required, Some Buyers Get 48-Hour Full Refund

Friday, October 2, 2026 · California · GSM News

California car buyers have a new layer of protection. The California CARS Act (SB 766), authored by State Sen. Ben Allen of Santa Monica, took effect October 1 after Gov. Newsom signed it Wednesday.

Under the new law, California auto dealers must clearly disclose vehicle prices in advertising (excluding taxes and certain fees) and can no longer mislead consumers with hidden fees and unexplained add-ons; some buyers also get a 48-hour "cooling-off period" to return the car unconditionally for a full refund. "For years, car buyers have been taken advantage of and deceived — stuck with unsafe cars or saddled with unnecessary debt for add-ons they never knew about. Those practices end in California today," Allen said.

The law only fixes price transparency, though — the high cost of owning and driving in California remains: gas, tires and insurance still sting. The new rules set clear standards for advertised prices but cannot lower the bills at the pump or the repair shop.

Published by GSM · USA (original Chinese edition)

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