In
1975, Congress enacted the federal Magnuson-Moss Act to regulate
written consumer product warranties. The law was meant to give consumers
detailed information about warranty coverage before they buy. Congress
charged the Federal Trade Commission with creation of the specifics
of the law. The FTC set down three rules under the Act: the Disclosure
Rule, the Pre-Sale Availability Rule and the Dispute Resolution Rule.
Those rules require warrantors to title their written warranty as
either "full" or "limited," provide a single,
clear and easy-to-read document that spells out certain information
about coverage and ensure that warranties are available where the
products are sold so that consumers can read them before buying.
In passing the Act, Congress meant
to give consumers access to warranty information, let consumers comparison
shop for warranties, encourage warranty competition and promote timely
and complete performance of warranty obligations. While the Magnuson-Moss
Act does not require manufacturers to provide a written warranty,
it provides specific rules when one is provided.
Among those provisions, FTC regulations
state: "(c) No warrantor of a consumer product may condition
his written or implied warranty of such product on the consumer's
using, in connection with such product, any article or service (other
than article or service provided without charge under the terms of
the warranty) which is identified by brand, trade, or corporate name;
except that the prohibition of this subsection may be waived by the
Commission if - (1) the warrantor satisfies the Commission that the
warranted product will function properly only if the article or service
so identified is used in connection with the warranted product, and
(2) the Commission finds that such a waiver is in the public interest." (42
U.S.C. 2302(C))
Access to the complete Magnuson-Moss
Act is available on the Internet by keywords "Magnuson-Moss
Act" or "Federal Trade Commission".
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