New Jersey is stepping up efforts to improve road safety and protect consumers with a new law designed to strengthen the way drivers are informed about vehicle recalls. Governor Phil Murphy signed the bipartisan “Motor Vehicle Open Recall Notice and Fair Compensation Act” into law in September 2025, marking a significant development in the state’s consumer protection policies. The law is set to take effect on April 1, 2026.
The new legislation requires the New Jersey Motor Vehicle Commission (MVC) to play a direct role in keeping residents informed about recalls. Before a vehicle’s registration can be issued or renewed, the MVC will check the federal recall database to see if there are any open recalls tied to that car. If a recall is flagged, the MVC must notify the owner in writing, direct them to the National Highway Traffic Safety Administration’s (NHTSA) website for details, and remind them that all recall repairs can be completed at no cost by an authorized dealer.
This move is aimed at closing gaps in the recall system, ensuring that more drivers are aware of potential safety issues with their vehicles, and encouraging them to get free repairs that could prevent dangerous accidents on New Jersey’s roadways.
Protections for dealerships and technicians
While much of the law focuses on consumer safety, several provisions are designed to ensure fairness for dealerships and auto service providers. For years, dealers have faced challenges when performing recall or warranty repairs, often being reimbursed at lower-than-retail rates. The new law mandates that manufacturers must now reimburse dealers at full retail rates, covering both parts and labor.
Another major win for dealerships comes with compensation for “stop-sale” or “do not drive” vehicles. In the past, when a car was deemed unsafe to sell, dealerships were forced to hold inventory without compensation. Under the new law, manufacturers will be required to cover these costs, protecting dealers from financial losses beyond their control. The legislation also prevents automakers from retaliating against dealerships that pursue warranty or recall claims, further balancing the relationship between manufacturers and local businesses.
By ensuring manufacturers carry the financial responsibility for recalls and warranties, the law not only improves fairness for dealers but also helps preserve local jobs and strengthens New Jersey’s automotive industry.
Role of manufacturers, dealers, and federal agencies
The MVC’s new responsibilities complement the existing recall notification system, which already involves automakers, dealerships, and the federal government.
Manufacturers are federally required to notify vehicle owners of recalls through first-class mail, explaining the safety risk and providing clear instructions on how to arrange free repairs. Under the new law, manufacturers must also share this recall information directly with the MVC, reinforcing the state’s ability to track and notify drivers.
Dealerships are equally critical in the process. The law makes it unlawful for dealers to sell a used vehicle without first checking for unaddressed recalls. If a recall is found, the dealer must notify the customer before finalizing the sale and provide a copy of the recall notice. Vehicles with active “do not drive” or “stop-sale” orders cannot be sold under any circumstances.
On the federal side, the NHTSA continues to provide tools for drivers, including its VIN lookup database, recall alerts via email, and the SaferCar mobile app, which sends notifications directly to a driver’s phone when a recall is issued for their vehicle. Together, these federal resources and the new state law create a stronger, more integrated safety net for New Jersey drivers.
A statewide push for safer roads
The Motor Vehicle Open Recall Notice and Fair Compensation Act demonstrates how state-level legislation can reinforce federal safety rules while addressing local concerns. By expanding the role of the MVC, ensuring manufacturers shoulder more responsibility, and protecting dealers from financial losses, the law brings multiple stakeholders together with the shared goal of safer roads in New Jersey.
As the law prepares to take effect in April 2026, drivers across the state will benefit from more consistent notifications and a clearer path to free recall repairs. The added protections for dealerships and technicians also reflect New Jersey’s commitment to fair business practices in the auto industry.
This legislation is not only about fixing vehicles—it’s about saving lives, improving accountability, and making sure every driver in New Jersey has the tools and information needed to stay safe on the road. For those following how state politics are shaping consumer protections and public safety, more coverage can be found here.
