Colorado Lemon Law State Ranking

November 7, 2002

Honorable Ken Salazar
Attorney General of Colorado
Office of the Attorney General
1525 Sherman St. 7th Floor
Denver, CO 80203

Dear Attorney General Salazar:

The Center for Auto Safety has just completed a study of the lemon law in every state and the District of Columbia and has ranked each state based on the results. Colorado is tied with North Dakota for the weakest lemon law in the country. With over 100,000 lemons bought back each year, a strong lemon law is vital to consumer protection. States with strong lemon laws force the auto companies to take back their lemons. States with weak lemon laws force consumers to eat their lemons.

The ranking was based on 10 different categories corresponding to fundamental elements of a strong lemon law, with each category worth a maximum of 10 points for a total of 100 points. The categories are:
1. number of repair attempts or days out of service before an automobile was considered a lemon,
2. whether law had a safety lemon provision and how protective it was,
3. the length of the presumption period or coverage of the lemon law,
4. whether law had a garden variety lemon provision to cover multiple different problems,
5. the offset for use of the car when determining a refund price,
6. if the consumer is eligible for a civil penalty or double or treble damages,
7. types of vehicles covered,
8. is there a state run arbitration program,
9. is the consumer compensated for their attorney fees, and
10. whether refund reimburses consumer for all costs of purchasing and owning lemon
Points were deducted for provisions that negated major rights under the lemon law including whether consumer (1) was liable for manufacturer's attorney fees, (2) lost rights under other laws, (3) had to file lemon lawsuit within short time, and (4) had to resort to manufacturer's unfair arbitration program before filing lemon lawsuit.

Colorado's lemon law is so bad no consumer will use it. It (1) lacks a safety lemon provision requiring auto companies to buy back or replace safety lemons after one unsuccessful repair attempt for a defect that threatens death or serious bodily injury, (2) provides for attorney fees to a prevailing manufacturer which means no consumer will sue and run the risk of having to pay an expensive corporate law firm, (3) lacks a garden variety lemon provision covering repairs for multiple different problems (4) forces consumers to resort to mandatory arbitration through biased auto company arbitration before they can exert their legal lemon rights, (5) does not provide a civil penalty for auto manufacturers who willfully violate the lemon law, (6) cuts off legal rights within one year before many lemons ripen, and (7) limits the refund to purchase price and governmental fees and other lemon costs such as interest, incidental and consequential damages, alternate transportation and finance charges. Examples of stronger provisions from other states are contained in the attached “Best State Lemon Law Provisions.”

We urge you to review this survey and use your authority to help improve Colorado's lemon law.

Sincerely,

Clarence M. Ditlow
Executive Director

Ian Hill
Research Assistant