The Federal Trade Commission (FTC) has sent warning letters to six major companies that market and sell cars – including Hyundai – or cellular devices and video gaming systems.
The letters warn that FTC staff are concerned about the companies’ statements that consumers must use specified parts or service providers to keep their warranties intact. Unless warrantors provide the parts or services for free, or receive a waiver from the FTC, such statements generally are prohibited by the Magnuson-Moss Warranty Act.
FTC staff has asked each company to review its promotional and warranty materials to ensure that they do not state or imply that warranty coverage is conditioned on the use of specific parts or services. Any failure to correct potential violations after 30 days may result in enforcement action by the FTC.
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