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2.3 “Certified” Used Vehicle Advertising Rule under the Car Buyer’s Bill of Rights
If you advertise a used vehicle as “certified,” you need to understand the specific legal requirements that come with that word. Under Vehicle Code Section 11713.25, there are restrictions on how dealers can use the term “certified” in connection with used vehicle sales.
The basic rule is this: you cannot advertise a used vehicle as “certified” unless the vehicle has actually undergone a thorough inspection in accordance with the certification standards of the vehicle’s manufacturer, and the vehicle is backed by a warranty that meets certain minimum requirements. In other words, “certified” is not just a marketing term you can slap on any car you’ve run through the car wash. It carries specific legal meaning and specific obligations.
For franchise dealers selling certified pre-owned vehicles under the manufacturer’s CPO program, this is generally straightforward — the manufacturer sets the inspection standards and provides the warranty backing. But for independent dealers, the certification requirements still apply. If you’re an independent dealer and you want to use the word “certified” in your advertising, you need to have a defined inspection process that meets the statutory standards, and you need to provide a warranty that satisfies the law’s requirements.
Here’s what that means in practice: if you advertise a vehicle as “certified” and a buyer purchases it relying on that representation, and the vehicle turns out to have significant mechanical problems that a proper certification inspection would have caught, you are exposed to liability. The buyer can argue that the “certified” designation was a material misrepresentation that induced the purchase. This can lead to rescission of the sale, damages, and potentially attorney’s fees.
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⚠ Key Compliance Point Under VEH §11713.25, advertising a used vehicle as “certified” requires that the vehicle has undergone a thorough inspection and is backed by a warranty meeting statutory standards. The term “certified” carries specific legal obligations — it is not a generic marketing term. Independent dealers must establish documented certification processes to use this designation. |
My advice: if you are not operating under a manufacturer’s CPO program, be very cautious about using the word “certified.” Consult with your legal counsel about whether your inspection and warranty programs meet the certification requirements before using the “certified” label in any advertising.