Congress enacted the Motor Vehicle Safety Whistleblower Act in December 2015 as part of the Fixing America’s Surface Transportation Act. Cosponsored by Republican Senator John Thune of South Dakota and Democratic Senator Bill Nelson of Florida, the law created a reward program for insiders at vehicle manufacturers, parts suppliers, and dealerships who report violations of federal motor-vehicle safety laws. The reported conduct must involve an unreasonable risk of death or serious physical injury, and the information must contribute to a successful government enforcement or related legal action.
The program provides eligible whistleblowers with 10% to 30% of monetary sanctions exceeding $1 million. It also permits confidential reporting and works alongside federal protections against employer retaliation. The law applies to non-U.S. citizens and to violations outside the United States when the affected vehicles or parts reach the U.S. market. Its stated rationale was a series of high-profile safety failures; the source identifies Takata airbag ruptures, General Motors ignition-switch defects, Toyota unintended-acceleration allegations involving “sticky” pedals, and Early Warning Reporting failures involving Fiat Chrysler, Honda, Ferrari, Triumph, and Forest River as examples of conduct the program could have rewarded if insiders had exposed it.
