FOR IMMEDIATE RELEASE
TRENTON, NJ Sept. 11, 2025 — The New Jersey Coalition of Automotive Retailers (NJ CAR) proudly applauds Governor Phil Murphy for signing into law S3309/A4380, the “Motor Vehicle Open Recall Notice and Fair Compensation Act”. This landmark legislation represents a major victory for New Jersey consumers, dealers, and their employees by ensuring fairness, safety, and accountability in how manufacturers handle recalls and warranty work on private vehicles.
“This legislation represents a critical step forward in protecting consumers, leveling the playing field for locally owned dealerships, and ensuring that automakers fairly compensate those who fix their mistakes,” said Laura Perrotta, President of NJ CAR.
“On behalf of NJ CAR and our dealer members, I want to thank Governor Murphy, Senate President Nicholas Scutari, and Assembly Speaker Craig Coughlin for their leadership in advancing this important consumer protection and fairness law. Additionally, NJ CAR would like to thank the NJ AFL-CIO, the NJ State Council of Machinists, and the United Service Workers Union for their tireless effort to make the voice of automotive technicians heard and for conveying the need for this legislation.”
NJ CAR Chairman Ronald Baus, Jr. said, “Bringing New Jersey’s laws in-line with our neighboring states will ensure that family-owned and operated businesses like ours, as well as all dealerships across the State, will be fairly compensated while keeping drivers safe on the road.”
Taking effect on April 1, 2026, this legislation ensures that consumers will have stronger protections when it comes to recalls and will protect the hard-working dealership technicians across New Jersey, who will now be guaranteed fair compensation for recall and warranty work. This important legislation will take dangerous vehicles off the road and keep our communities safe.
Key Provisions of the “Motor Vehicle Open Recall Notice and Fair Compensation Act”
• Warranty and Recall Labor Time: Manufacturers must reimburse dealers at no less than the retail rate for warranty and recall work.
• Fair Compensation for Stop-Sale Recalls: Automakers must compensate dealers 1.5% per month of the book value of any vehicle subject to a “stop sale” or “do not drive” order. This protects consumers from being trapped in unsafe vehicles and ensures dealers are not forced to absorb costs.
• Expanded Consumer Protections: The law strengthens outreach and notification to vehicle owners with unresolved recalls, encouraging them to seek free safety repairs at authorized dealerships.
• Clear Definition of Costs: Automakers are now required to cover all costs associated with warranty and recall compliance, including holding inventory, parts, and labor — preventing manufacturers from shifting expenses onto dealers or consumers.
• No Penalty for Reimbursement Claims: Dealers will be protected from financial retaliation by automakers when asserting warranty or recall claims.
• Standing to Sue: The law amends the New Jersey Vehicle Franchise Practices Act to explicitly grant NJ CAR and similar associations standing to bring legal action against violations, strengthening enforcement and accountability.
• Statement of Legislative Intent: The Act clarifies that the purpose of the NJ Vehicle Franchise Practices Act is to protect consumers, promote competition, and enhance highway safety.
About the New Jersey Coalition of Automotive Retailers (NJ CAR)
The New Jersey Coalition of Automotive Retailers (NJ CAR) advocates on behalf of New Jersey’s $45.4 billion auto retail sector. The Coalition promotes public policies that ensure a fair and competitive marketplace, where the complex vehicle purchase process is made as simple and as seamless as possible. New Jersey’s extensive network of 520+ neighborhood franchised new car and truck dealers represents a fiercely competitive marketplace, keeping drivers safe by ensuring ready access to warranty and safety recall service. It’s fair to say that New Jersey’s franchised new vehicle dealerships are the economic engine driving the Garden State. They promote economic growth across the State by employing more than 38,600 people in well-paying local jobs that can’t be outsourced and investing nearly $26 million in local charitable causes each year.
CONTACT
Megan Cryan
[email protected]
(908) 868-4434