Effective July 2023: Song-Beverly Act Amendment Will Affect Companies Selling Consumer Goods in California

Effective July 1, 2023, California law will prohibit express warranties for consumer products sold in California from beginning on the date of sale if delivery occurs later. Instead, warranties for products sold in the state will begin in the date of delivery to the consumer if that’s not the same as the date of sale. For example, a California consumer who purchases a refrigerator that’s delivered two weeks later is entitled to a warranty that goes into effect on the date of delivery, and no sooner.

The change in California law is the result of an amendment to the Song-Beverly Consumer Warranty Act (Song-Beverly Act) (Cal. Civ. Code, §§ 1790 to 1795.8), enacted in 1970.  Among other things, the Song-Beverly Act ensures that buyers of consumer goods in the state obtain the benefit of an express warranty given with the goods, and that every retail sale of consumer goods is accompanied by certain implied warranties with limited disclaimers. Where there are express warranties for consumer goods sold in California, the Song-Beverly Act also requires the manufacturer of goods to either maintain sufficient California service and repair facilities or to designate and authorize independent California facilities as service and repair facilities that are reasonably close to all areas where its consumer goods are sold. The Song-Beverly Act also requires that certain language be included in consumer warranties.

Failure to comply with obligations under the Song-Beverly Act can give rise to individual or class claims for damages; equitable relief; civil penalties issued by the California Attorney General; and recovery of litigation costs and expenses, including attorneys’ fees.

This amendment is important for the many companies selling consumer products into California, and potentially adds another level of complexity to doing business in the state. To comply with Song-Beverly and avoid potential liability under the Act, these companies must act now to ensure that they are properly tracking sales dates and delivery dates, if they differ—or put such mechanisms into place—and are communicating to customers the proper term of the warranty period. For some companies—such as those that sell and deliver their own goods—this may not pose a great challenge.  But for those companies that don’t—like those who sell through unaffiliated retailers—it may. Companies should also reexamine the language of their consumer-product warranties to ensure that they comply with the Act as amended.

Potentially affected companies should reach out to qualified legal counsel. Buchanan’s consumer class action defense team can assist companies assess compliance or defend against any actual or threatened Song-Beverly actions.