FTC Snips Warranty Tie-ins

By George Gill  –  From the June 3, 2015 issue of Lube Report.

The U.S. Federal Trade Commission is toughening its guidelines to clarify that “implied tying” – language that implies to a consumer that warranty coverage is conditioned on their use of select parts or service – is deceptive under the Magnuson-Moss Warranty Act.

Industry groups hailed the action as a victory for consumers, and for sellers of engine oils, transmission fluids, gear oils and other automotive aftermarket products.

The FTC announced it will make changes to interpretations under the Warranty Act in a final action to be published soon in the Federal Register. The interpretations provide the Commission’s views on terms and provisions in the Act.

The Magnuson-Moss Warranty Act prohibits “tying” arrangements that require the warranted product’s purchaser buy a particular brand item or service to use with the product to be eligible for warranty coverage, unless the item or service is provided free of charge.   Read More

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