California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 1.5B — California Combating Auto Retail Scams (CARS) Act, Chapter 3 — Prohibited Conduct and Consumer Rights, Section 1784.42

It is a violation of this title for any dealer, in connection with the sale or financing of vehicles, to charge for any of the following.

(a) A dealer may not charge for an add-on product or service if the vehicle purchaser or lessee would not benefit from the add-on product or service, including, as applicable, any of the following:

(1) Nitrogen-filled tire-related products or services that contain less than 95-percent nitrogen purity.

(2) Products or services that do not provide coverage for the vehicle, the consumer, or the transaction.

(3) A GAP agreement that is not in compliance with Section 2982, 2982.2, or 2982.12.

(4) A service contract if the service contract is void due to preexisting conditions, including prior damage from a crash or flood or preexisting mechanical conditions.

(5) Oil changes for electric vehicles.

(6) Catalytic converter markings for a vehicle that does not have a catalytic converter.

(7) Surface protection product that renders the manufacturer’s warranty for the paint job void.

(b) A dealer shall pay the person or entity who is supposed to provide the benefit of the add-on within 10 days of the date when the car buyer or lessee signs the purchase or lease, unless the dealer has an agreement with the person or entity that provides for payment at a later date and the buyer’s or lessee’s coverage is not impacted by the later payment.

(c) This section does not prohibit a dealer from charging for an add-on product or service, such as a service contract, if the add-on product or service is selected by, and would benefit, the vehicle purchaser or lessee, even if the vehicle purchaser or lessee ultimately does not choose to use the add-on product or service, and even if the vehicle purchaser or lessee does not use the add-on product or service because a coverage event does not occur.