with legislators, either at the state or federal level, to ensure that consumers and independent repair shops have appropriate access to replacement parts, instructions, and diagnostic software.
The Federal Trade Commission enforces the MMWA, a consumer protection law passed in 1975 to clarify how written warranties may be used when marketing products to consumers.[1] The MMWA requires warrantors of consumer products to provide consumers with detailed information about warranty coverage.[2] Section 102(c) of the MMWA prohibits warrantors from conditioning warranty coverage on the consumer’s use of an article or service identified by brand, trade, or corporate name, unless the warrantor provides that article or service without charge or the warrantor has received a waiver from the Commission.[3] Companies may seek a waiver of this prohibition if: (1) the warrantor satisfies the Commission that the manufacturers’ parts or services are necessary for the product to function, and (2) the waiver is in the public interest.[4] Since 1975, only three waiver requests have been made to the Commission, all of which were denied.[5]
The FTC has issued three Rules under the MMWA, the Rule on Disclosure of Written Consumer Product Warranty Terms and Conditions (the Disclosure Rule), 16 C.F.R. pt. 701, the Rule on Pre-Sale Availability of Written Warranty Terms (the Pre-Sale Availability Rule), 16 C.F.R. pt. 702, and the Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule), 16 C.F.R. pt. 703. Unlike many of the FTC’s Rules, the FTC lacks the authority to seek civil penalties when enforcing the three Rules it promulgated under the MMWA. Instead, the Commission can obtain an injunction. In addition, the FTC has issued Interpretations of the MMWA—a document that clarifies certain terms and explains some of the provisions of the MMWA.[6] In the Interpretations, the FTC provides guidance on Section 102(c) of the MMWA. As stated in the Interpretations, Section 102(c) applies not only to express statements, but also implied language that a warranty is conditioned on the use of particular products or services. For example, a provision in the warranty such as, “use only an authorized ‘ABC’ dealer” or “use only ‘ABC’ replacement parts,” is prohibited where the service or parts are not provided free of charge pursuant to the warranty.[7]
- ↑ 15 U.S.C. § 2301 et seq.
- ↑ Id.
- ↑ 15 U.S.C. § 2302(c).
- ↑ Id.
- ↑ Denial of Waiver of Section 102(c) of the Magnuson-Moss Warranty Act, 41 Fed. Reg. 17821 (Apr. 28, 1976) (waiver requested by Sohmer & Co., Inc., a piano manufacturer); Denial of Waiver of Magnuson-Moss Warranty Act, 41 Fed. Reg. 34368 (Aug. 13, 1976) (waiver requested by Harmsco, Inc., a manufacturer of swimming pool water treatment systems); Denial of Waiver of Section 102(c) of the Magnuson-Moss Warranty Act, 43 Fed. Reg. 1991 (Jan. 13, 1978) (waiver requested by Coleman Co., Inc., a manufacturer of heating and cooling appliances and associated equipment for mobile homes).
- ↑ 16 C.F.R. pt. 700 (2015).
- ↑ The Interpretations explain that Section 102(c) does not preclude a warrantor from expressly excluding liability for defects or damage caused by articles or services not provided by the manufacturer. Nor does Section 102(c) bar the warrantor from denying liability where the warrantor can demonstrate that the defect or damage was caused by articles or service not provided by the manufacturer. 16 C.F.R. § 700.10 (2015).
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