Navigating California’s Evolving Lemon Law Landscape
Juan Herrera, Vice President, Dispute Resolution Programs, BBB National Programs
Understanding and navigating new legal changes can be challenging, and recent amendments to California’s “Lemon Law” are no exception.
Amendments adopted in early 2025, known as “Actions for Restitution for or Replacement of Certain Motor Vehicles,” introduce significant procedural changes if a consumer intends to file an action in California seeking restitution or replacement of a motor vehicle under the Song-Beverly Consumer Warranty Act, the relevant portions of which are known as California’s Lemon Law.
These changes include:
The amendments are found in California Assembly Bill No. 1755 (AB 1755, effective January 1, 2025) and Senate Bill 26 (SB 26, signed into law April 2, 2025). SB 26 institutes an opt-in system allowing manufacturers to opt in to the new procedures established by AB 1755. In addition, the pre-suit notification provisions of the law (Section 871.24 of the California Civil Procedure Code) now have an operative date of July 1, 2025, instead of April 1, 2025.
For a list of manufacturers who have opted in to these new civil procedures, visit the Arbitration Certification Program - CA Department of Consumer Affairs website.
BBB National Programs’ Dispute Resolution Services team has established arbitration and mediation programs to support both the prelitigation arbitration of attorneys’ fees and costs and the mandatory mediation process as outlined in the new law.
Want to learn more? Reach us at programs@bbbnp.org.
Understanding and navigating new legal changes can be challenging, and recent amendments to California’s “Lemon Law” are no exception.
Amendments adopted in early 2025, known as “Actions for Restitution for or Replacement of Certain Motor Vehicles,” introduce significant procedural changes if a consumer intends to file an action in California seeking restitution or replacement of a motor vehicle under the Song-Beverly Consumer Warranty Act, the relevant portions of which are known as California’s Lemon Law.
These changes include:
- A new statute of limitations,
- Standardizing procedures regarding a consumer notifying a manufacturer of their intent to sue,
- Implementing strict timelines for a manufacturer’s response and offer of restitution/replacement and completion of the same,
- Requiring arbitration of any prelitigation attorneys' fees dispute,
- Requiring mediation prior to trial, and
- Other civil procedures for lemon law litigation.
The amendments are found in California Assembly Bill No. 1755 (AB 1755, effective January 1, 2025) and Senate Bill 26 (SB 26, signed into law April 2, 2025). SB 26 institutes an opt-in system allowing manufacturers to opt in to the new procedures established by AB 1755. In addition, the pre-suit notification provisions of the law (Section 871.24 of the California Civil Procedure Code) now have an operative date of July 1, 2025, instead of April 1, 2025.
For a list of manufacturers who have opted in to these new civil procedures, visit the Arbitration Certification Program - CA Department of Consumer Affairs website.
BBB National Programs’ Dispute Resolution Services team has established arbitration and mediation programs to support both the prelitigation arbitration of attorneys’ fees and costs and the mandatory mediation process as outlined in the new law.
Want to learn more? Reach us at programs@bbbnp.org.