Arlington, VA — The American Consumer Institute is deeply disappointed that S5085B has been signed into law in the state of New York. This bill reduces transparency in the auto-repair billing process which will ultimately harm consumers by permitting car dealers and repair shops to overcharge them for repairs.
Vehicle repair bills include the cost of parts plus the time it will take the mechanic to perform the task(s) at hand. Most auto shops use a labor guide published by manufacturers which provides estimated time frames for specific repairs. If the shop finishes the work ahead of schedule and/or ends up not using a certain part, it keeps the excess billing. A survey of more than 150 mechanics discovered that roughly 40 percent of people get overcharged for their auto repairs and services.
Nearly nine out of 10 survey respondents claim they have likely been overcharged for auto repairs at least once. Two-thirds of motorists are frustrated over the lack of transparency. This bill will only serve to increase the level of distrust individuals feel towards auto shops.
Consumers deserve more transactional transparency, not less. Legislation should focus on increasing consumer information rather than concealing it. The market needs to be dictating prices and auto shops ought to be incentivized to compete for their customers. This new law is not good for American consumers.
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