SPRINGFIELD – State Senator Laura Murphy spearheaded a new law to protect consumers by cracking down on unlicensed car dealers deceiving consumers with sales of defective cars.

“This law ensures that we are holding unlicensed car dealers accountable and ensure every car sale meets the standards of safety and honesty,” said Murphy (D-Des Plaines). “Ending curbstoning lifts a burden off of Illinois consumers.”

The goal is to make the already illegal practice of “curbstoning” — a scheme where individual sellers draw car shoppers to places like parking lots and side streets to sell used cars without a license — more difficult. The cars are sold for more money than they are worth and typically have significant issues such as water damage, mileage rollbacks, mechanical issues, or salvaged titles — which are only issued if the car has sustained enough damage to be declared a total loss.

Under the law, vehicle dealers will not be able to park and advertise cars on public streets or highways, public parking lots or public property. Law enforcement agencies would be allowed to authorize towing services to remove a car if it is displayed for sale with a damaged, destroyed, removed, covered or altered vehicle identification number.

In addition, the law will create the Unlicensed Motor Vehicle Dealer Enforcement Task Force to review unlicensed car dealership enforcement in the state. The task force will recommend ways to extend additional protections to customers, investigate online sellers, and explore enhanced penalties and enforcement mechanisms.

“I am committed to protecting all consumers in every area of Illinois,” said Murphy. “This law protects consumers and ensures fair practices in the automotive industry.”

House Bill 2751 was signed into law by the governor on Friday. It goes into effect Jan. 1, 2026.