FTC Sends Warning Letters On Warranties

The Federal Trade Commission announced today that it has sent letters to six major companies that market and sell automobiles, cellular devices, and video game systems, warning them that their statements that consumers must use specified parts or service providers to keep their warranties intact may violate federal law. 

According to the FTC, unless the companies provide the parts or services for free or receive a waiver from the FTC, these types of statements generally are prohibited by the Magnuson-Moss Warranty Act and may violate the FTC Act as well. 

Statements that the FTC cited as potentially problematic include: 

• The use of [brand] parts is required to keep your manufacturer's warranties and any extended warranties intact;