FTC warns eight firms over warranty practices impacting right-to-repair

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Lina M. Khan Chair of the Federal Trade Commission | Official website

FTC warns eight firms over warranty practices impacting right-to-repair

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Federal Trade Commission staff sent warning letters to eight companies regarding their warranty practices, which may impede consumers' right to repair products they have purchased. The warnings highlight concerns that these practices violate the Magnuson-Moss Warranty Act (MMWA), a law governing consumer product warranties and enforced by the FTC.

“These warning letters put companies on notice that restricting consumers’ right to repair violates the law,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The Commission will continue our efforts to protect consumers’ right to repair and independent dealers’ right to compete.”

Five of the companies were cautioned about statements requiring consumers to use specified parts or service providers to maintain their warranties. Such statements are generally prohibited by the MMWA unless warrantors provide parts or services for free or receive a waiver from the FTC. These statements may also be deceptive under the FTC Act.

The letters were issued to air purifier sellers aeris Health, Blueair, Medify Air, and Oransi, along with treadmill company InMovement.

Three other companies received warnings about using stickers with language such as “warranty void if removed,” placed in locations on products that hinder routine maintenance and repairs.

These letters were issued to ASRock, Zotac, and Gigabyte, companies that market and sell gaming PCs, graphics chips, motherboards, and other accessories.

FTC staff urged each company to review its promotional and warranty materials to ensure they do not imply warranty coverage is conditioned on using specific parts or services. The letters state that FTC staff will review the companies’ websites after 30 days and failure to correct any potential violations may result in law enforcement action.

The staff attorneys handling this matter are Abdiel T. Lewis and Alyssa Wu of the FTC’s Western Region in San Francisco.

The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC advises it will never demand money, make threats, tell individuals to transfer money, or promise prizes. More information can be found at consumer.ftc.gov or ReportFraud.ftc.gov. Follow the FTC on social media for updates on consumer alerts and business news.

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