Understanding Auto Repair Laws and Consumer Rights

This chapter aims to protect the public from deceptive auto repair practices, fostering trust in legitimate auto repair businesses and mechanics.

Definitions within Auto Repair Legislation

For the purpose of this legislation, the following definitions are critical:

1. Airbag: Refers to a vehicle’s inflatable occupant restraint system, a key component of the supplemental restraint system.

2. Automotive Repair Facility: Any entity or individual engaged in performing auto repair work on motor vehicles for financial gain.

3. Auto Repair Work: Encompasses any repair or maintenance services performed or attempted on a motor vehicle with the intention of financial profit. This definition is central to understanding the scope of these regulations.

4. Counterfeit Supplemental Restraint System Component: A replacement part for the supplemental restraint system, such as an airbag, that illegally mimics the trademark of a vehicle manufacturer or their parts supplier without proper authorization.

5. Motor Vehicle: Defined as per § 101(42) of Title 21, broadly covering vehicles used for transportation.

6. Nonfunctional Airbag: A replacement airbag that falls under any of the following conditions, indicating it is not operating as intended:

   a. It has been previously deployed or is damaged, compromising its effectiveness.

   b. It has an electrical malfunction detectable by the vehicle’s diagnostic system upon completion of installation and vehicle return to the customer or at the point of intended ownership transfer. This ensures functionality upon service completion.

   c. It includes any component or object installed to mislead the vehicle owner into believing a functional airbag is in place. This addresses deceptive practices.

   d. It is prohibited under 49 U.S.C. § 30120(j), aligning with federal safety standards.

7. Pattern of Violations: Signifies three or more violations within a single year, indicating a repeated disregard for regulations.

8. Person: Broadly includes individuals, corporations, trusts, partnerships, associations, or any legal or commercial entity, ensuring wide applicability of the law.

9. Supplemental Restraint System: A passive safety system including airbags, designed to work in conjunction with seat belts as per 49 CFR 571.209. This system includes airbags and all necessary components to ensure proper operation in a crash and compliance with federal motor vehicle safety standards for the specific vehicle make, model, and year.

Unlawful Practices in Auto Repair

Deceptive, fraudulent, or misleading conduct in auto repair work is strictly prohibited. This includes any act that aims to mislead customers, regardless of whether the customer is actually deceived or incurs damage. Specifically, unlawful practices include:

(a) Engaging in deception, fraud, false pretenses, false promises, misrepresentation, or concealing or omitting material facts with the intention that others rely on such actions in connection with auto repair work. This is unlawful regardless of whether any person was actually misled or damaged. The use of deceptive trade practices by any auto repair facility in connection with auto repair work is also unlawful.

(b) Prohibited acts and practices include, but are not limited to:

1. Refusing to return a customer’s vehicle for declining to pay for unauthorized auto repair work, which violates specific estimate and authorization rules. This protects consumers from being held hostage for unwarranted charges.

2. Falsely claiming that auto repair work has been completed when it has not. This is a direct misrepresentation of services rendered.

3. Misrepresenting the necessity of auto repair work. Suggesting unnecessary repairs to inflate costs is illegal.

4. Falsely stating that a vehicle is in a dangerous condition or that continued use could cause harm or significant damage, when soliciting auto repair work. This tactic to scare customers into unnecessary repairs is prohibited.

5. Misrepresenting whether a vehicle will pass inspection or meet state or federal requirements to solicit auto repair work. False claims about inspection outcomes are unlawful.

6. Performing unauthorized auto repair work based on misrepresentation. Carrying out repairs that were not agreed upon due to false pretenses is illegal.

7. Installing or reinstalling any non-operative object in place of a functional airbag, including counterfeit or nonfunctional airbags. This directly addresses safety and deceptive practices related to critical safety equipment.

8. Selling, installing, or reinstalling any device that prevents a vehicle’s diagnostic system from indicating issues with counterfeit supplemental restraint system components, nonfunctional airbags, or missing airbags. Circumventing safety warnings is illegal and dangerous.

9. Fraudulently altering any customer contract, estimate, invoice, or other related documents. Tampering with official paperwork is a serious violation.

10. Fraudulently misusing a customer’s credit card. Financial misconduct is explicitly prohibited.

11. Engaging in a pattern of violations related to estimate requirements, invoice requirements, return of replaced parts, unauthorized repairs, or intentionally hindering the discovery of prohibited practices. Repeated violations or attempts to conceal unlawful activities are aggravated offenses.

(c) Manufacturing, importing, distributing, selling, or offering for sale any device intended to replace a supplemental restraint system component that is counterfeit, nonfunctional, or causes the vehicle to fail federal safety standards is prohibited. This targets the supply chain of illegal and unsafe auto parts.

Auto Repair Estimate Requirements

To ensure transparency and prevent unexpected charges, specific estimate requirements are in place for auto repair work.

(a) Written Estimate and Authorization Requirements: Before starting any auto repair or transmission repair diagnosis, an automotive repair facility must provide the customer with a written statement, unless waived by the customer or their representative. This statement must include:

1. The estimated completion date for the auto repair work.
2. The estimated total price, including parts and labor.
3. Details of any estimated surcharges.

(b) Oral Estimates and Authorization: If a customer waives their right to a written estimate, the auto repair facility must provide an oral estimate of the price and completion date before work begins. Crucially, the facility must still create a written record of the estimated price, completion date, and any surcharges, sign or initial it, and keep this record for at least two years. This maintains accountability even with oral agreements.

(c) Prohibited Charges: An auto repair facility cannot charge more than 20% or $50 (whichever is less) above the original estimate without customer consent. Any charges exceeding this threshold require new authorization, either written or oral, following the same estimate procedures. This protects customers from significant unexpected cost increases.

Invoice Requirements for Auto Repair Services

Detailed and accurate invoices are mandatory to ensure customers are fully informed about the services they receive and the costs involved.

(a) Work Description: An automotive repair facility must prepare an invoice that comprehensively describes:

1. All auto repair work performed, including any warranty work.
2. All parts supplied by the facility.
3. All labor performed. If labor charges are not based on actual hours, the invoice must state if a flat rate was applied. Exception: Packaged services like oil changes do not need to itemize labor costs.
4. Any auto repair work subcontracted to other persons. The facility must keep records of the subcontractor’s name, address, and phone number and disclose this information if requested by the customer.

(b) Used, Rebuilt, or Reconditioned Parts: The invoice must clearly indicate if any used, rebuilt, or reconditioned parts were used in the repair or if any supplied component system includes such parts. Transparency regarding part condition is essential.

(c) Copies of Invoices: Customers are entitled to a copy of the invoice, and the auto repair facility must retain a copy for at least two years for record-keeping and potential dispute resolution.

Return of Replaced Auto Parts to Customers

Customers have the right to inspect replaced parts to verify that repairs were actually performed and to understand what was replaced.

An automotive repair facility is required to offer the return of all replaced parts to the customer, except for parts under warranty, trade-in parts returned to a manufacturer or distributor, hazardous materials, or items that the facility is legally obligated to dispose of or recycle properly. However, the facility is not required to store replaced parts indefinitely after the final invoice is issued. This balances customer rights with practical business operations.

Unauthorized Auto Repairs and Customer Rights

Charging for repairs that were not authorized is strictly forbidden, protecting customers from unwanted services and costs.

An auto repair facility cannot charge a customer for repairs that were not originally authorized or requested, unless they obtain subsequent written or oral permission from the customer, adhering to the chapter’s regulations. Charges that exceed an estimate by no more than 20% or $50 (whichever is less) do not automatically constitute a cause of action under consumer rights provisions, providing a small buffer for minor discrepancies. However, this does not excuse fraudulent practices related to unauthorized work or misrepresentation, which remain enforceable under other sections of the law.

Required Notice to Auto Repair Customers

To ensure customers are aware of their rights, auto repair shops must provide clear and conspicuous notices.

(a) Posted Sign Requirements: Auto repair shops must display a sign visible to the public stating:

1. Customers are entitled to a written or oral estimate.
2. Repair charges cannot exceed the estimate without customer consent.
3. The facility will offer to return replaced parts, excluding warranty or trade-in parts.
4. Complaints can be directed to the Consumer Protection and Fraud Division of the Delaware Department of Justice. This ensures customers know where to seek help if they encounter issues.

(b) Alternative Disclosure Document: If a shop does not post the required sign, they must provide a separate document or include on the written estimate itself, the following bolded language:

“PLEASE READ CAREFULLY

CHECK ONE OF THE STATEMENTS BELOW AND SIGN

I UNDERSTAND THAT, UNDER STATE LAW, I AM ENTITLED TO A WRITTEN ESTIMATE.

________ I REQUEST A WRITTEN ESTIMATE.

________ I REQUEST AN ORAL ESTIMATE.

________ I DO NOT REQUEST A WRITTEN ESTIMATE AS LONG AS THE REPAIR COSTS DO NOT EXCEED $________. THE SHOP MAY NOT EXCEED THIS AMOUNT WITHOUT MY WRITTEN OR ORAL APPROVAL.

________ I WAIVE MY RIGHT TO AN ESTIMATE.

SIGNED __________________ DATE __________________ ”

This ensures even in the absence of a sign, customers are directly informed of their rights before proceeding with repairs. This requirement has been effective since January 1, 1997, emphasizing long-standing consumer protection.

Enforcement and Remedies for Auto Repair Violations

To ensure these regulations are effective, clear enforcement mechanisms and remedies are in place.

(a) The Attorney General is empowered to enforce and remedy violations of this chapter, utilizing the authorities provided by Chapter 25 of Title 29 and §§ 2511-2527 and 2531-2536 of this title. This grants significant legal power to the Attorney General’s office to oversee and act on violations.

(b) Any violation of the section outlining unlawful practices (§ 4903A) is automatically deemed an unlawful practice under § 2513 of this title, triggering specific legal consequences.

(c) In cases where an auto repair facility violates requirements related to unlawful practices, estimate requirements, invoice requirements, return of replaced parts, and/or unauthorized repairs (§§ 4903A, 4904A, 4905A, 4906A, 4907A), the transactions can be voided by the consumer in Justice of the Peace Courts. If a consumer successfully brings such an action, the auto repair facility is liable for double the amount of consideration obtained unlawfully, plus court costs. However, the customer must first provide the auto repair facility an opportunity to resolve the dispute before filing a lawsuit. The court may also award reasonable attorney’s fees to the successful consumer, further incentivizing compliance and protecting consumer rights. This subsection does not prevent individuals from pursuing other legal remedies for damages in competent courts.

(d) The remedies and penalties in this section are additional and not exclusive. They complement any other legal procedures, rights, or remedies available under other state or federal laws, including criminal prosecutions and common law or statutory actions initiated by private parties. This ensures a comprehensive legal framework to address auto repair issues and protect consumers.