The FTC is Cracking Down on Illegal Warranty Practices

The Federal Trade Commission (FTC) has recently sent letters to ASRock, Gigabyte, and Zotac regarding their warranty practices, specifically addressing the issue of “warranty void if removed” stickers. These stickers, commonly found on gadgets, have been deemed illegal by the FTC.

The letters sent to ASRock, Gigabyte, and Zotac go beyond the surface-level issue of skin stickers. The FTC is urging these manufacturers to reevaluate their warranty policies and customer support practices to ensure that they are not illegally threatening consumers’ warranties.

The particular law that the FTC is citing in these letters is the federal Magnuson-Moss Warranty Act. This legislation aims to prevent companies from offering misleading warranties and from conditioning warranties on specific requirements that are deemed unfair to consumers.

According to the FTC, the Warranty Act prohibits manufacturers of consumer products from tying their warranties to the use of specific brands or services unless certain conditions are met.

The FTC has informed ASRock, Gigabyte, and Zotac that they will be monitoring their compliance with the Warranty Act by reviewing their written warranties and promotional materials after a 30-day period. Failure to address the issues raised in the letters could result in further enforcement actions by the FTC.

It is worth noting that this is not the first time the FTC has intervened in warranty practices. In 2018, the agency put major companies like Nintendo, Sony, and Microsoft on notice for similar violations, prompting these companies to update their policies accordingly.

Following the FTC’s enforcement actions, companies like Asus, HTC, and Hyundai have also faced scrutiny over their warranty practices. Asus, in particular, has been reevaluating its customer support and warranty policies in response to external investigations.

While the legality of “warranty void if removed” stickers may vary in different parts of the world, organizations like iFixit have raised awareness about the issue and emphasized the importance of upholding consumer rights in the repair industry.

The FTC’s crackdown on illegal warranty practices serves as a reminder to manufacturers that warranties should be fair and transparent for consumers. By addressing the issue of “warranty void if removed” stickers and other restrictive practices, companies can uphold the principles of the Magnuson-Moss Warranty Act and ensure a level playing field for consumers in the marketplace.