The CLRA stands for the Consumer Legal Remedies Act, a law established to protect consumers that purchase or lease goods and services, for example from a car dealership. The CLRA was developed with the intention of providing the consumer with legal remedies should they experience difficulties after purchasing goods and services at such locations. This law allows a consumer to seek damages, among other forms of relief, and they can be awarded their attorneys fees and costs. This amount could be in the TENS OF THOUSANDS of dollars.

As a car dealer, you can be liable under the CLRA for a vast number of different types of claims. For example, you could be sued for not properly disclosing prior damage, prior accidents, prior rental, and/or prior structural damage to a consumer. You could also be sued for spoken misrepresentations, meaning, the consumer can simply claim that you made a spoken misrepresentation to them during the sale. The potential consequences are far-reaching and can include becoming subject to significant financial penalties, being required under court order to implement corrective measures. Businesses should take every effort to ensure that they are not violating the CLRA,, otherwise their actions will expose them to costly litigation.

When it comes to car dealers and the CLRA, knowledge is power. By understanding what the CLRA is and how dealerships can easily get sued under it, you as a dealer can avoid many potential problems. Of course, if you do have questions or concerns about your dealership compliance, please do not hesitate to reach out to an attorney experienced in this complex area of the law.