CA SB1398

Requires dealers and manufacturers to provide buyers with a distinct notice describing the functions and limitations of partial driving automation features when selling new passenger vehicles or providing software updates that add such features.

Defines "partial driving automation feature" as Level 2 partial driving automation under Society of Automotive Engineers (SAE) Standard J3016 (April 2021).

Prohibits manufacturers and dealers from using deceptive naming or marketing language that implies partial driving automation features allow autonomous vehicle functionality or have capabilities not actually included.

Makes violations of these requirements punishable as infractions and classifies violations of naming/marketing restrictions as misleading advertisements under Vehicle Code Section 11713.

Exempts manufacturers from liability if they provide required information to dealers but dealers fail to provide notices to buyers, and exempts dealers from liability if manufacturers fail to provide required information.