Effective October 1, 2026
California CARS Act compliance for auto dealers
California requires dealers to disclose add-ons as optional, clearly and conspicuously, and bans add-ons providing no benefit (e.g., nitrogen tires below 95% purity).
What California dealers need to know
California Governor Gavin Newsom signed the California CARS Act on October 6, 2025. As of October 1, 2026, every California new-car dealer is subject to specific disclosure requirements for add-on products.
The Act requires that any optional add-on product be disclosed "clearly and conspicuously" as not required for purchase. Dealers cannot charge for add-on products or services that provide no benefit to the buyer. The Act also caps the dealer documentation fee at $85.
LotCite's rule engine evaluates California-jurisdiction scans against the California CARS Act in addition to federal FTC §5 enforcement.
Active rules (7)
- ftc-total-price
- ftc-rebate-disclosure
- ftc-financing-condition
- ftc-mandatory-addons
- ftc-fee-itemization
- ftc-clear-conspicuous
- ca-addon-optional-disclosure
Sources
Last reviewed 2026-05-06. Methodology.
By state: California · Massachusetts · New York