Stat of the Week: California Dealership Litigation Isn’t Just About the Lemons
California’s famous for its lemons. And I’m not just referring to the state’s many citrus groves or the soft, sweet, Meyer variety of the fruit popularized by Alice Waters and the California cuisine movement. No, because this is a compliance blog and we regularly focus on issues related to the automobile industry, the “lemons” we’re interested in are irreparable vehicles.
This week’s statistic comes to us from Auto Advisory Services’ Docket Tracking, and identifies the kinds of lawsuits consumers and employees filed against California dealerships last year.
Take a look at how things break down (no pun intended):
Since January of 2016, California dealerships have faced over 2,400 lawsuits filed against them by consumers or current or former employees. And for every lawsuit filed, there are many more demand letters that are settled out of court. While lemon-related suits make up the majority of complaints, the next 5 most common categories of lawsuits fall all over the spectrum of consumer protection and workforce compliance.
The takeaway? Unless you’re at a Safeway or a farmers’ market, avoid selling lemons—and then make sure you’ve handled your other legal responsibilities. Here at Compli, we may not be able to inspect your inventory, but we can help you identify your areas of risk and reduce the chances of a lawsuit. Click here to earn more.
