Does the new, tougher Chinese Lemon Law foreshadow things to come in the US?

Earlier this week, Steve Anderson, C.O.O. at The PHC Company, forwarded an article detailing a new Lemon Law now in effect in China. It is considerably more stringent than the prior law and commentators believe it will drive consolidation in China’s auto industry because of the increased economic pressures it places on smaller car makers.
With the recent increase in federal consumer protection regulation in the U.S., are we heading in the direction of a national Lemon Law? Congress rejected wholesale federal auto warranty regulation during the process leading up to enactment of the Magnuson-Moss Warranty Act in 1975.
But times and attitudes are changing – rapidly – and a movement towards national consumer product warranty and service contract legislation is not implausible. At present, consumer service contracts, a $38B a year industry with an image problem, looks to be a more likely target because extended service plans are, arguably, a “financial product.” And with most states having removed service contracts from regulation as insurance, federal regulators may see this an appropriate area in which to act.

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Filed under Service Contract, Statutes & Regulations, Warranty

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