During the last week of March 2023, the Auto Fraud Legal Center, California’s leading automotive consumer firm, lost a case against Toyota Motor Sales USA (“Toyota”), involving the validity of Lexus’ “L Certified” program, Mazyck v. RNL Automotive, LLC/Toyota Motor Sales USA. The consumer plaintiff in the case challenged the program's validity after purchasing a used Lexus that had prior accident damage and paint repairs. The plaintiff claimed that the vehicle had prior structural damage to the rear panel and quarter panel, which was not disclosed and disqualified it from CPO status. The dealership settled with the plaintiff by repurchasing the vehicle, and the case went to trial against Toyota Motor Sales USA on an injunctive relief claim under the California Consumer Legal Remedies Act and Business & Professions Code Section 17200.

In court, the plaintiff sought an injunction that would redefine Toyota’s definition of structural damage and require more dealership training in the implementation of the program and inspection of vehicles. However, the judge found in favor of Toyota, stating that the vehicle was not structurally damaged under Lexus’ CPO guidelines, and that the dealership employees were more than adequately trained. The judge also found no reason to rewrite and supervise Toyota’s national CPO program. The prevailing party, Toyota, may be able to recover its court costs, expert expenses, and other fees, making the cost bill against the consumer plaintiff significant, likely more than $100,000.

The decision emphasizes the importance of thoroughly investigating used vehicles before purchase and the effectiveness of manufacturer’s CPO programs.