FTC Sends Warning Letters Over Warranty Practices

The FTC is focused on ensuring that consumers have options when it comes to repairing products. Two years ago, we summarized an FTC workshop, report, Policy Statement, and three settlements on this issue. Last week, the FTC announced that they had sent warning letters to eight companies, raising concerns about whether their warranty practices were unlawfully hindering consumers' right to repair their products.

Under the Magnuson-Moss Warranty Act, companies that offer warranties for consumer products that cost more than $5 generally can't condition their warranties on a consumer's use of any part or service identified by brand name, unless the warranty states that the part or service will be provided for free (or they have a waiver from the FTC). Under the FTC Act, it's also deceptive for companies to create the misleading impression that a consumer will void their warranty by using unauthorized parts or service.