Rhode Island Gov. Donald L. Carcieri has signed SB 2514, the Automobile Airbag Fraud Prevention Act. The act was introduced in February by Sens. Joshua Miller, D-District 28, and David Bates, R-District 32. The new law seeks to combat airbag fraud.
The act outlines the actions that would constitute “deceptive trade practices,” including when:
• A person installs or reinstalls, as part of a vehicle inflatable occupant restraint system, any object in lieu of an airbag, including any light manipulating system;
• A person sells or offers for sale any device with the intent that such device will replace an airbag in any motor vehicle if such person knows or reasonably should know that such device does not meet federal safety requirements;
• A person sells or offers for sale any device that, when installed in any motor vehicle, gives the impression that a viable airbag is installed in that vehicle, including any light manipulating system; and/or
• Any person intentionally misrepresents the presence of an airbag when one does not exist.
The act includes language that states perpetrators of the previously stated violations can be fined between $1,000 and $2,000 and can land up to two years in prison per violation. In addition, those “whose violation…results in serious bodily injury or death” can be fined up to $100,000 and serve up to 10 years in prison per violation.
In addition, the act outlines restrictions regarding the purchase, sale or installation of a new or salvaged airbag. The following highlights some of these restrictions:
• Any person engaged in the business of purchasing, selling or installing salvaged airbags shall maintain a manual and/or electronic record of the purchase, sale or installation, which shall include the identification number of the airbag; the vehicle identification number of the motor vehicle from which the salvaged airbag was removed; the name, address and driver’s license number or other means of identification of the person from whom the salvaged airbag was purchased; and, in the event that the salvaged airbag is installed, the vehicle identification number of the vehicle into which the airbag is installed. No new or salvaged airbag shall be sold or installed that is or has been subject to a specific manufacturer’s or appropriate authority’s notice of recall.
• Any person who sells a salvaged airbag or who installs a salvaged airbag must disclose to the purchaser and vehicle owner that the airbag is salvaged.
• All records must be maintained for not less than five years following the transaction, and may be inspected during normal business hours by any law enforcement officer of this state or other authorized representative of the agency charged with administration of this chapter.
• Upon request, information within a portion of such record pertaining to a specific transaction must be provided to the insurer and the vehicle owner.
The bill goes on to state that those selling a motor vehicle under the knowledge that the vehicle possesses a faulty airbag must notify the buyer or trader in writing. Those who are informed of the state of a faulty airbag and fail to disclose this information to the buyer or trader will serve severe penalties similar to those stated above.
