Vehicle safety recalls: Maryland law
Panelist Mike Johansen discussed the Maryland recall law — effective October 1, 2016. Originally, the legislation required disclosure to consumers for any open recall. That requirement was eliminated, and disclosure remains voluntary; but is required as a matter of prudene and sound business practice, Johansen said. In other words, dealers are well advised to disclose recall information to customers in writing, he said. WANADA counsel Gerry Murphy said the association has a model disclosure form available, free for the asking, courtesy of Mike Charapp.
Like Virginia, Marylandês law clarifies that recall repairs are compensated the same way as warranty repairs. Dealers cannot be denied payment if they encourage their customers to fix vehicle problems even if the warranty or recall repair is discovered during the course of a separate repair requested by the customer.
The Maryland law also allows the dealer to distribute repair, recall and Technical Service Bulletin information to customers without fear of reprisal from the automaker. The dealer may provide information related to any condition that may substantially affect motor vehicle safety, durability, reliability or performace. That part of the law supersedes any clauses in a Technical Service Bulletin saying the dealer cannot disclose the information in it to the customer.
Maryland law, like federal law, requires automakers to compensate dealers when the automaker issues a stop-sale order on used vehicles, either 1 percent monthly on the value of the vehicles, or at a rate under a uniform national program.
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