The Federal Trade Commission has sent warning letters to six major companies that market and sell automobiles, cellular devices, and video gaming systems in the United States.
The letters warn that FTC has concerns about the companies’ statements that consumers must use specified parts or service providers to keep their warranties intact. Unless warrantors provide the parts or services for free or receive a waiver from the FTC, such statements generally are prohibited by the Magnuson-Moss Warranty Act, a law that governs consumer product warranties. Similarly, such statements may be deceptive under the FTC Act.
“Provisions that tie warranty coverage to the use of particular products or services harm both consumers who pay more for them as well as the small businesses who offer competing products and services,” said Thomas B. Pahl, Acting Director of the FTC’s Bureau of Consumer Protection.
The FTC has requested that each company review its promotional and warranty materials to ensure that such materials do not state or imply that warranty coverage is conditioned on the use of specific parts of services. The letters state that FTC staff will review the companies’ websites after 30 days and that failure to correct any potential violations may result in law enforcement action.
You can see the entire statement HERE
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