FTC Calls Out PC Companies Involved In Unfair Warranty Practices Such as “Warranty Void If Removed” Stickers, Demands Revised Approach

The Federal Trade Commission has issued letters to major PC companies, demanding they review their warranty policies and the "languages" involved in them.

In modern times, claiming warranties from manufacturers has become a problem for many consumers due to uncertain policies and strict RMA conditions. We have seen several occasions over public forums where users are sharing their negative experiences when claiming warranties, and this has created a bad impact on the markets, especially when it comes to images of big tech companies. However, it looks like the FTC has decided to intervene in the situation, issuing letters to ASRock, Zotac, and Gigabyte, asking them to review their warranty and promotional material.

The FTC has specifically raised concerns about the line "warranty void if removed" and has told the companies that this violates the Magnuson-Moss Warranty Act. Here's what they had to say:

These warning letters put companies on notice that restricting consumers’ right to repair violates the law. The Commission will continue our efforts to protect consumers’ right to repair and independent dealers’ right to compete.

- Samuel Levine, Director of the FTC’s Bureau of Consumer Protection

The letters to five of the companies warn that FTC staff has concerns 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 are generally prohibited by the MMWA. Similarly, such statements may be deceptive under the FTC Act.

These letters were issued to ASRock, Zotac, and Gigabyte,companies that market and sell gaming PCs, graphics chips, motherboards, and other accessories.

- FTC Press Release

Well, the FTC's stance here is certainly bold, and the regulator's move is quite justifiable, considering that such warranty labels not only put consumer rights at stake but also prevent them from engaging in a repair/replacement process at all. The Magnuson-Moss Warranty Act states that manufacturers are required to clearly and conspicuously disclose the terms and conditions of their warranties in writing, and it also prevents the warranty from going void in case of self-repairing by the consumer. However, this hasn't been a practice at all in the industry, and the FTC is indeed right here.

The regulatory firm made a similar move back in 2018, issuing similar letters to Nintendo, Sony, and Microsoft regarding gaming consoles. It will be interesting to see whether the companies mentioned by the FTC revise their warranty policies in light of the incident, but it's highly probable that consumers will win here.

News Source: FTC