Its mission is to promote justice for all consumers by maintaining a forum for information sharing among consumer advocates across the country and to serve as a voice for its members as well as consumers in the ongoing struggle to curb unfair and abusive business practices. For the reasons detailed below, NACA supports the petition filed with the Commission by Consumers for Auto Reliability and Safety together with other consumer groups. Indeed, the current state of local regulation actually contributes to substantial consumer injury, as purchasers in states without adequate statutory protection become a natural market for the resale of laundered vehicles from states which regulate or restrict lemon laundering. In addition, title branding, a warning label and conspicuous contract disclosure are all important and vital elements that should be included in any regulation to offer consumers a meaningful, up-front disclosure, allowing them to make informed decisions regarding the largest purchase most consumers will make. The benefits of ensuring that potential purchasers of buyback vehicles know what they are purchasing are manifest.
Consumers have a right to adequate information to protect themselves in the marketplace.
In particular, consumers are entitled to sufficient information to completely avoid a buyback vehicle and instead opt for a vehicle without a troubled history. A consumer is also entitled to knowingly choose to purchase a buyback vehicle but at a price which reflects its diminished value. NAAG recommended the adoption of legislation or regulations which would provide for buyback status disclosure, title branding, reporting to and recording by state motor vehicle departments of the identification of buyback vehicles, as well as recovery of actual damages, exemplary damages, and attorneys' fees for aggrieved consumers. NAAG also recommended the creation of a multistate database network to allow interstate tracing of vehicles with branded titles. The states currently take a wide variety of approaches to the problem.