February 2018 Government Affairs Update




What You Need to Know for February

·       Is Nissan favoring dealers with special engine oil allowances?

·       Magnuson Moss Actions in California, Florida, Maryland & New Jersey

·       Kia/Hyundai Recall Update

·       Upcoming National Consumer Protection Week Marketing Opportunity


Nissan Engine Oil Warranty Requirements – Only for Aftermarket Installers?

AOCA has received reports that Nissan dealerships in North America are performing routine oil changes with 5W30 conventional engine oil on Nissan vehicles that require 0W20 full synthetic engine oil for warranty coverage. Given the significant cost difference between these two engine oils, it is no surprise that consumers made aware by Nissan dealerships of what appears to be a dealer-only service option are turning away from aftermarket service providers who must either provide the more expensive full synthetic oil change or require a consumer waiver in the event Nissan North America, Inc. or one of its dealerships should later claim breach of warranty due to the use of non-recommended engine oil.

AOCA is currently seeking an official explanation from Nissan North America regarding this anti-competitive practice. Members who run across this situation are encouraged to report the details to AOCA at info@aoca.org.


Magnuson Moss Warranty Act Disclosure Efforts in the States

When consumers don’t know about the Magnuson Moss Warranty Act (MMWA), they fall for automaker threats of losing warranty coverage for failure to use branded parts and services. That means one of the fastest, most effective ways to safeguard the aftermarket is to educate consumers. AOCA is approaching this task on two fronts: (1) state legislation mandating dealership disclosure of MMWA rights to consumers at the time of purchase, and (2) maximizing existing state regulatory authority to promote MMWA rights to consumers.

California: The Bureau of Automotive Repair has agreed to include MMWA rights content in its Automotive Repair and Smog Check Newsletter.

Florida: After two years of promoting state legislation, MMWA coalition members have wisely parlayed their foundational work into negotiations with state regulators to include MMWA disclosure language in the Florida Car Buyers Guide and other applicable state consumer notices.

Maryland: HB 434 (see link below) has been introduced in the General Assembly. Maryland members interested in testifying in support of the legislation to require mandatory OEM/dealership MMWA disclosure are encouraged to contact AOCA at info@aoca.org.

New Jersey: Although A261 passed the Assembly last year after compelling testimony from AOCA Government Affairs Committee member Jay Rosenthal, the bill unfortunately stalled in the Senate for non-substantive reasons. The bill may be reintroduced this year.


Update: Kia/Hyundai Theta Engine Ongoing Recall

For the past six years, fast lube industry experts have reported serious problems with multiple Kia and Hyundai models using the Theta engine. The most common symptoms include: knocking noise, rattling on brake and acceleration, metal shavings in engine oil, oil filter ballooning, and engine seizure. The most common dealership response to Kia/Hyundai customers has been: all malfunctions are caused by failure to use required OEM brand oil filters. And, of course, that lie eventually fell apart when AOCA challenged it as a violation of the Magnuson Moss Warranty Act to both the National Highway Traffic Safety Administration (NHTSA) and the Federal Trade Commission (FTC), and two consumer class action lawsuits were filed soon after.

The recalls (see links below) resulting from those actions required Hyundai and Kia to recall over a million cars and SUVs in the United States, including Kia Optima, Sorento, and Sportage, and Hyundai Sonata and Santa Fe.

As-yet unrecalled models with the exact same symptoms include Hyundai Elantra 1.8L, and Kia Forte 1.8L and Soul 1.6L (prior recalls for other issues). Members who continue to see problem vehicles are encouraged to submit the information—make/model/year/engine/symptoms—to AOCA headquarters at info@aoca.org.


Get Ready for National Consumer Protection Week March 4 – 10, 2018

Supported by the National Association of Attorneys General, this campaign focuses on helping people understand their consumer rights and make well-informed decisions about money. Translation: it’s a great time to talk to your customers about the Magnuson Moss Warranty Act! An easy way to do it is by offering them AOCA’s Consumer Automotive Warranty Rights Survey. https://aoca.site-ym.com/page/MMWASurvey. The statistics from the survey results are also the most effective source of evidence for compelling the Federal Trade Commission and state legislatures into action!

Government Affairs

Item Name Posted By Date Posted
Draft_Write_it_Right_Guide.pdf PDF (1.89 MB) Administration 12/17/2018
AOCA_Presentation_-_TSIA_Annual_Meeting_2018.pptx PPTX (852.89 KB) Administration 12/17/2018
Opalka_v._Amalie.pdf PDF (784.1 KB) Administration 12/17/2018
AOCA_Fast_Lube_Customer_Complaint_Form.docx DOCX (80.96 KB) Administration 11/13/2018
2018_Hyundai_Elantra-GT_Manual.pdf PDF (13.62 MB) Administration 11/13/2018
California AB 3141 PDF (197.34 KB) Administration 10/4/2018
MA HD 5153 PDF (120.82 KB) Administration 10/4/2018
TSIA 2018 Flyer PDF (208.12 KB) Administration 9/19/2018
BAR Estimate Regulation PDF (155.02 KB) Administration 9/18/2018
2018 Update AOCA WM State Enforcement Guide FI.pdf PDF (639.08 KB) Administration 8/10/2018
Sen Nelson-kia-hyundai-response from NHTSA---6.pdf PDF (105.97 KB) Administration 8/10/2018
Center-for-Auto-Safety-Kia-Hyundai-Fire-Defect.pdf PDF (106.6 KB) Administration 8/10/2018
Hyundai Safety Recall LetterRCMN-15V568-7409.pdf PDF (206.7 KB) Administration 8/10/2018
Kia Hyundai Class Action Complaint.pdf PDF (1.01 MB) Administration 8/10/2018
Smolek v Hyundai Kia class action Theta II eng.pdf PDF (749.25 KB) Administration 8/10/2018
FTC MMWA Warning Letter to Hyundai April 9 201.pdf PDF (639.42 KB) Administration 8/10/2018
Kia Hyundai MMWA Complaint NHTSA Petition for .pdf PDF (505.17 KB) Administration 8/10/2018
Proposed Obsolete Automaker Engine Oil Notice PDF (475.18 KB) Administration 8/10/2018
Draft Sheet For Installers To Use W/ Distributors DOCX (18.34 KB) Administration 6/18/2018
Oppose A7914 PDF (247.39 KB) Administration 5/24/2018
Warning letter to Hyundai PDF (639.42 KB) Administration 5/24/2018
Comments Submitted To BAR - April 2018 PDF (546.29 KB) Administration 4/23/2018
Oppose A7914 031518.pdf PDF (247.39 KB) Administration 3/16/2018
OC Interval Proposed_Regulations_Text_4.23.18.pdf PDF (83.64 KB) Administration 3/16/2018
A7914.pdf PDF (2.88 KB) Administration 3/16/2018
2017 18 Chevy Colorado Canyon oil filter remov.pdf PDF (84.16 KB) Administration 3/16/2018
Kia 4th notice recall June 2017 RCMN-17V224-41.pdf PDF (153.26 KB) Administration 2/7/2018
Hyundai Expands Recall PDF (211.19 KB) Administration 2/7/2018
Testimony of Jay Rosenthal PDF (177.31 KB) Administration 2/7/2018
House Bill 434 PDF (83.09 KB) Administration 2/7/2018
2017 GA Agenda PDF (124.15 KB) Administration 2/28/2017
FTC Complaint re Kia PDF (491.21 KB) Administration 1/10/2018
Know Your Federal Rights PDF (196.19 KB) Administration 5/19/2016
Fast Lube Customer Warranty Rights Survey PDF (66.86 KB) Administration 4/18/2016