New Jersey Sues Nissan

Failed to Warn Maxima Owners of Headlight Theft Risk

March 9, 2004
New Jersey's attorney general charges that Nissan officials knew and should have informed customers that certain high-powered headlights were being targeted by thieves. A lawsuit filed by the state seeks restitution for customers who paid, on average, $1,800 to have the xenon headlights on their 2002 or 2003 Maximas replaced after they were stolen.

“Nissan knew since at least September 2002 that thieves were targeting the xenon headlamps in Maximas,” Attorney General Peter C. Harvey said.

“However, it wasn’t until more than a year later that Nissan finally began notifying 2002 and 2003 Maxima owners of the risk of theft and the availability of anti-theft devices. Meanwhile, numerous victims were hit with huge repair bills. We’re seeking restitution for those consumers.”

“We allege the company sold cars with these fancy lights, but kept consumers in the dark about how attractive the headlamps were to thieves,” Consumer Affairs Division Director Reni Erdos said. “Nissan’s actions, or lack thereof, rendered consumers vulnerable to the criminals who targeted their vehicles.”

For many Nissan owners, it's not a one-time problem.

"Back in March 03 I had my headlights on my Nissan Maxima stolen. Then again on April 25, 2003 and again this past week," Stephanie of Jersey City complained to ConsumerAffairs.com in June 2003.

A survey of police reports from 19 municipalities over the past two years revealed 756 reports of thefts or attempted thefts of the xenon headlamps from 2002 and 2003 Maximas. The State’s complaint alleges that, since at least September 2002, Nissan knew that the xenon headlamps were being stolen.

The company, in fact, issued a bulletin to its service technicians on Sept. 26, 2002 stating that a “replacement connector kit is available for xenon headlamp assembly connectors that need to be replaced ... because of damage that occurred due to headlamp assembly theft.”

Two months later, the complaint alleges, Nissan issued another bulletin advising its service technicians that a xenon headlamp theft deterrent kit was available for installation in 2002 and 2003 Maximas. The Dec. 1, 2002 bulletin stated that the “Anti-Theft Kit” was available “if a customer requests” and “for customer pay only.” The kit, which cost consumers $175 for purchase and installation, included four tamper-resistant Torx bolts, a door key cylinder protector, a hood lock and a hood lock cable protector. The bulletin indicated that installation of the kit “is not covered by the vehicle warranty.” Nissan did not instruct its dealers to notify consumers about the kit, the complaint alleges.

In November 2003, more than one year after Nissan knew about the xenon headlamp theft problem, it sent a letter to approximately 46,000 Maxima owners in the Northeast region, warning them that the xenon headlamps were being targeted by thieves, particularly in “some major metropolitan areas in New York and New Jersey.”

Nissan notified those consumers of a “three-point program” to reduce the chance of theft of xenon headlamps. The program, Nissan represented, included “securing devices” for xenon headlamps, which dealers were instructed to install at no charge to customers. The securing devices, however, were different from Nissan’s Anti-Theft Kit. The securing devices included headlamp brackets, mounting nuts and securing tap screws and washers.

In a statement about the headlights, company officials touted their program that allows Maxima owners to get an anti-theft kit for free.

"Nissan is implementing this program in areas around New York and New Jersey (where thefts are highest) to reduce the likelihood that these crimes will move to other areas where they are not now occurring," Nissan said. "While nothing can completely eliminate the thefts of parts from vehicles, we believe the proactive steps taken by Nissan will help deter criminals from stealing headlights from our customers' Maximas."

The State’s complaint alleges that Nissan engaged in unconscionable commercial practices and knowingly concealed, suppressed or omitted material facts to consumers in violation of the Consumer Fraud Act by, prior to November 2003,

1. failing to inform consumers purchasing 2002 and 2003 Maximas, as well as existing owners and lessees, of the risk of theft of the xenon headlamps, and
2. failing to inform owners and lessees of the cars of the availability of the Anti-Theft Kit.

The complaint further alleges that the company engaged in unconscionable commercial practices by, prior to November 2003, failing to instruct its authorized dealers or service departments to notify purchasers, owners and lessees of 2002 and 2003 Maximas of the availability of the Anti-Theft Kit, and by charging consumers for installation of the kit.

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