FTC Warning Letters On Right To Repair Suggest Future Enforcement

The FTC has issued warning letters to eight companies, accusing them of possibly imposing restrictions on third-party servicing of products in violation of the Magnusson-Moss Warranty Act (MMWA).

The MMWA is a federal law, administered by the Federal Trade Commission (FTC), directing the FTC to establish disclosure standards for written warranties, specifying standards for "full" warranties, limiting disclaimer of implied warranties, and establishing consumer remedies for breach of warranty or service contract obligations. In recent years, the FTC has actively monitored manufacturer efforts to disclaim warranties in circumstances where the manufacturer attempts to condition the warranty on the use of only "authorized" service centers or OEM parts. The FTC has brought several notable enforcement actions in the subject area. The orders in these cases have also led to class action litigation.