On September 11th, Governor Murphy signed the “Motor Vehicle Open Recall Notice and Fair Compensation Act” (S3309/A4380). This new law, which goes into effect on April 1, 2026, is a big win for New Jersey dealers, their employees, and our consumers, but it wasn’t an easy process to get to the Governor’s desk.

The law contains important consumer protections, such as enhanced outreach and notification to consumers who have an unresolved recall and statutorily confirms that customers are entitled to bring their vehicles to an authorized dealership for repair free of charge. Additionally, the legislation requires manufacturers to pay auto dealers fairly for warranty and recall repairs.

Though this requirement seems sensible, we had to fight hard to ensure it stayed in the bill. The law now authorizes the use of a customized multiplier for each dealership by applying a process based on what the retail customer pays for the same service. Moreover, it codifies NJ CAR’s statutory standing to sue a manufacturer for an alleged violation of the New Jersey Franchise Practices Act (NJFPA).

How Did We Get Here?

This has been an ongoing issue for dealers in New Jersey. NJ CAR’s swift action in leading the fight has taken over two years, including countless meetings, calls, negotiations, and shoe-leather lobbying, but was ultimately successful because of all of you and our powerful grassroots lobbying. Dealers’ strong and influential voices are the best tool we have to advance our policy goals. You are major contributors to New Jersey’s economy, providing good-paying jobs that can’t be outsourced, all while investing in your employees to meet the requirements set forth by your manufacturer. 

So first, let me thank you for placing the calls, hosting the meetings, and sending the emails to help bring to light the challenges we faced as dealers related to this important piece of our business model by asking our legislators to pass this fundamental legislation. 

We must also thank the leaders and legislators in Trenton in both chambers who not only recognized the challenges we faced with this issue but also helped pass this legislation to ensure consumers as well as small business new car and truck dealers were always the focus. Speaker Craig J. Coughlin, Minority Leader John DiMaio, Senate President Nicholas Scutari, and Senate Republican Leader Anthony Bucco were tireless champions on this issue despite the aggressive opposition from the auto manufacturers. 

The Final Result

Twenty-six (26) Senators and forty-nine (49) Assemblymembers signed on as co-sponsors of this recall legislation.

NJ CAR’s legislative staff, our external team of consultants, and the labor unions also played an important role with continual intelligence gathering, providing relentless education on the merits of the legislation. We testified at three (3) hearings in the Assembly and one (1) hearing in the Senate, exposing the growing concern that auto manufacturers continue to oppose this legislation challenging our efforts with objections throughout the process. The misinformation that was being circulated about this bill’s impact not only fueled our dealer body and NJ CAR’s legislative team to rebuke this information but also brought to light the challenges we faced in our industry, and our consumers faced as a result. 

To enhance our messaging to the public and influence decision-makers in Trenton, NJ CAR made a major investment in a public relations campaign. Using this method, we were able to demonstrate a positive, consumer-focused narrative by explaining the enhanced safety benefits the public would receive when the bill was passed. We also focused the messaging on our automotive technicians, illustrating the importance of positive fair compensation requirements for warranty and recall work. To help get this message out in a quick and effective way, we created digital video brochures to send to each legislative office, explaining why it was so critical to pass this bill.

After an incredible victory, let’s take a few moments to celebrate the importance of this new legislation. The investment and effort NJ CAR made to get this across the finish line will have a positive impact on our members going forward, and none of it would have happened without your support!