On Bauer Business Focus — A conversation on consumer protection laws and the automotive industry with Andrew Schneider, business reporter for KUHF 88.7 FM.
Texas was one of the first states to adopt a lemon law in 1983 to protect consumers when products they purchased failed and had difficulty trying to get manufacturers, particularly the automotive industry, to take responsibility. However, the number of lemon law cases filed each year can be hard to determine.
David Tiede, director of the Texas Consumer Complaints Center at the University of Houston Law Center’s Center for Consumer Law, stopped by Bauer Business Focus this week for a discussion on the automotive industry’s relationship with the “lemon law.”
“There were only a few hundred [automotive] complaints in Texas, but that’s only official complaints through the Texas Department of Motor Vehicles,” Tiede said on this year’s numbers. “We don’t have any information about private lawsuits or private settlements.”
The Texas lawsuits have favored automakers two to one, with the consumer losses coming down to fees and experience.
“The car dealers and the manufacturers are at administrative hearings more frequently. They know the process and the system, where as a consumer that may be the first time they’ve ever had to navigate this system,” Tiede said. “Unfortunately, the Texas law doesn’t provide for attorney’s fees. That means they would have to go into their own pocket to have a legal council representing them”
Click here to hear the full interview.