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Better Business Bureau

Examples of company language the FTC objected to include: The use of [company name] parts is required to keep your ... manufacturer’s warranties and any extended warranties intact. This warranty shall not apply if this product ... is used with products not sold or licensed by [company name]. This warranty does not apply if this product ... has had the warranty seal on the [product] altered, defaced, or removed.  The letter to Hyundai specifically cited the statement that “the use of Hyundai Genuine Parts is required to keep your Hyundai manufacturers’ warranties and any extended warranties intact.” Hyundai responded that it will revise the language to address the FTC’s concerns. In announcing the action, Thomas B. Pahl, acting director of the FTC’s Bureau of Consumer Protection said, “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.” The agency asked each company to review its promotional and warranty materials to insure they don’t state or imply that warranty coverage is conditioned on the use of specific parts or service. Failure to correct any potential violations could result in a law enforcement action. The FTC recommends that all companies read their warranty information through the eyes of consumers. Literal wording that conditions warranty coverage on the use of parts or service provided or authorized by the company is clearly prohibited, but so is any language a reasonable consumer would interpret to mean that.

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2018-08-24 / Posted in