August 15, 2024
Motor Vehicle Dealer Protection Act Signed into Law
A new law protecting auto dealers was signed into law last Friday. HB 4447 (Cabello/Murphy), supported by IADA, creates the Motor Vehicle Dealer Protection Act, enabling vehicle dealers to pursue scammers who use their intellectual property to deceive consumers. This measure, led by Rep. John Cabello and Senator Laura Murphy, targets extended warranty fraud, where aftermarket sellers often send fraudulent letters that appear to be from an official source, pushing unnecessary and overpriced plans.
Under HB 4447, motor vehicle dealerships can seek damages for the unauthorized use of their name, likeness, image, registered trademark, or intellectual property. Violations allow motor vehicle dealers to recover actual damages or up to $5,000, whichever is greater, and the court may award punitive damages and other appropriate relief.
This legislation aims to safeguard dealerships from reputational harm caused by deceptive marketing tactics and enhance consumer transparency. By holding scammers accountable, it ensures that customers receive accurate information and that dealers' reputations are protected.
The IADA is proud to have supported the bill through the Legislature. It passed both Chambers unanimously and was signed into law by the Governor. The new law takes effect January 1, 2025.
Legislation to Curb Title Washing and Fraud Signed Into Law
Legislation to clarify that motor vehicles titled to Illinois residents must be on Illinois Certificates of Title was signed into law on August 9th and became effective immediately. P.A. 103-891 will make it more difficult to circumvent the Illinois title process to hide REBUILT or FLOOD brands or other defects that impact a vehicle’s value. 103-0891 (ilga.gov)
Any person, including a dealer or other business, applying for a title showing an Illinois address for the owner must apply for an Illinois Certificate of Title. Any owner of a vehicle with a non-Illinois Certificate of Title bearing an Illinois address for the owner must obtain an Illinois Certificate of Title before he or she can transfer ownership of the vehicle. P.A. 103-891 permits dealers to continue transferring vehicles on non-Illinois titles that have open reassignment areas.
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