CARS Congressional Testimony

Since 1982, CARS founder Rosemary Shahan has been repeatedly invited to testify before Congress, on behalf of the car-buying public, by members of Congress from both sides of the political aisle. The first invitation was issued by U.S. Senator John Danforth (R-MO), who sought her testimony in support of requiring auto manufacturers to install air bags.

In 2005, in the wake of Hurricanes Katrina, Rita and Wilma, U.S. Senator George Allen (R-VA), Chair of the Senate Commerce Subcommittee on Consumer Affairs, Product Safety and Insurance, invited her to testify about the hazards of flood cars and auto salvage fraud. She testified on a panel with representatives from the National Association of Attorneys General and American Association of Motor Vehicle Administrators and auto interests, in order to provide the public interest perspective.

Rosemary's testimony about the hazards of flood cars and salvage fraud

In 2008, U.S. Representative Linda Sanchez, Chair of the U.S. House Judiciary Subcommittee on Commercial and Administrative Law, invited Rosemary to testify in support of a bill authored by Rep. Chavez that would prohibit auto dealers from forcing customers to agree to submit disputes to binding mandatory arbitration, as a condition of purchasing a vehicle.

In a breathtaking display of hypocrisy, dealers have opposed granting consumers the same rights they enjoy. Auto dealers received a special exemption from Congress from the Federal Arbitration Act, freeing them from mandatory arbitration in their disputes with auto manufacturers. When dealers sought the exemption, some members of Congress were reluctant to side with them -- until the dealers promised, in writing, not to oppose restoring the same constitutional rights to consumers.

National Automobile Dealers Association's letter to Congress

But -- surprise! They lied. Breaking their promise to Congress, they have been very actively opposing consumers' getting the same rights, and they killed Sanchez' bill. As a result, car buyers continue to be deprived of their constitutional rights, and are getting trapped by auto dealers in no-win situations.






Video that shows what happens to vehicle owners suffering from auto dealer forced arbitration abuse

In 2009, U.S. Representative Henry Waxman invited Rosemary to testify before the House Subcommittee on Commerce, Trade and Consumer Protection Chaired by U.S. Representative Bobby Rush (D-IL) regarding Consumer Protection in the Used and Subprime Car Market. Rosemary testified on a panel with representatives from the U.S. Department of Justice, Federal Trade Commission, and National Consumer Law Center.


Rosemary's testimony and other documents, plus a videotape of the hearing