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The FTC themselves put up a highly readable overview of the Magnuson-Moss Warranty Act for business that also provides insight on the consumer impact: https://w
by nrp 5y ago
The FTC themselves put up a highly readable overview of the Magnuson-Moss Warranty Act for business that also provides insight on the consumer impact: https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law https://www.ftc.gov/tips-advice/business-center/guidance/bus...
I captured some highlights from it earlier this year while crafting a warranty policy for a new product:
FTC: In addition, it is permissible to disclaim warranty coverage for defects or damage caused by the use of parts or service you didn’t provide. Here is an example of a permissible provision in that circumstance:
* Necessary maintenance or repairs on your AudioMundo Stereo System can be performed by any company. Damage caused to the AudioMundo Stereo System by you or any non-authorized third party, however, may void this warranty.
FTC: There is one permissible modification of implied warranties, however. If you offer a "limited" written warranty, the law allows you to include a provision that restricts the duration of implied warranties to the duration of your limited warranty. For example, if you offer a two-year limited warranty, you can limit implied warranties to two years. However, if you offer a "full" written warranty, you cannot limit the duration of implied warranties. This matter is explained in Titling Written Warranties as "Full" or "Limited".
FTC: The Act allows warranties to include a provision that requires customers to try to resolve warranty disputes by means of the informal dispute resolution mechanism before going to court. (This provision applies only to cases based upon the Magnuson-Moss Act.) If you include such a requirement in your warranty, your dispute resolution mechanism must meet the requirements stated in the FTC's Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule). Briefly, the Rule requires that a mechanism must:
FTC: The Magnuson-Moss Warranty Act requires that every written warranty on a consumer product that costs more than $10 have a title that says the warranty is either "full" or "limited" (The Act calls these titles "designations.") The title is intended to provide consumers, at a glance, with a key to some of the important terms and conditions of a warranty.
* You do not limit the duration of implied warranties.
* You provide warranty service to anyone who owns the product during the warranty period.
* You provide warranty service free of charge.
* You provide, at the consumer's choice, either a replacement or a full refund if, after a reasonable number of tries, you are unable to repair the product.
* You do not require consumers to perform any duty as a precondition for receiving service, except notifying you that service is needed, unless you can demonstrate that the duty is reasonable.
* You are not required to make your entire warranty "full" or "limited" If the statements above are true about the coverage on only some parts of your product, or if the statements are true about the coverage during only one part of the warranty period, then your warranty is a multiple warranty that is part full and part limited.
FTC: The warrantors who choose the online method to provide their warranty terms must supply in the product manual, or on the product or product packaging, the internet address where the consumer can review and obtain the specific product’s warranty terms, as well as the phone number, postal mailing address, or other reasonable non-internet based means for the consumer (or seller) to request a free copy of the warranty terms.
FTC: The Guides advise that, regardless of the price of the product, advertising terms such as "satisfaction guaranteed" or "money back guarantee" should be used only if the advertiser is willing to provide full refunds to customers when, for any reason, they return the merchandise.
* The Guides further advise that an ad mentioning a satisfaction guarantee or similar offer should inform consumers of any material conditions or limitations on the offer. For example, a restriction on the offer to a specific time period, such as 30 days, is a material condition that should be disclosed.