Summit Automotive Group 943 Blue River Parkway Silverthorne, CO 80498 (970) 513-0292
New Car Warranty Magnuson-Moss
Act
New and used car dealers are notorious for
their claims that only they can provide warranty work on a car or
truck that they sell. Some have gone so far as to state that a
warranty will be rendered invalid if anyone other than a dealer's
service department does the work, or if any product other than a
brand-name product is used. This practice was one of a number of
questionable tactics that led to the enactment of the Magnuson-Moss
Warranty Act in 1975. The Magnuson-Moss Warranty Act is a component
of the Federal Trade Commission Improvement Act, and was passed in
an effort to "improve the adequacy of information available to
consumers, to prevent deception, and improve competition..." It
mandates disclosures designed to enhance consumer protection through
awareness of implied and express warranties attached to products and
services. The relevant portions of the Act, as they have been
applied by several Grease Monkey franchisees are: "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
defined 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."
A clearly-written explanation of this provision contained in
Pennzoil Product Bulletin #323, from which we quote the following:
"Under the Magnuson-Moss Warranty Act general principles of the
Federal Trade Commission Act, a manufacturer may not require the use
of any brand of filter, or any other part, unless the manufacturer
provides the item free of charge under the terms of the warranty. An
equipment manufacturer can obtain a waiver if it proves to the FTC
that the equipment would function properly only if certain brands of
filters or other parts are used. The FTC must be satisfied that this
is in public interest, and this waiver must be published in the
Federal Register. This is a "waiver" of the prohibitions on
conditions of written warranty. "Should a customer be told that only
a brand name oil filter can be used under a written warranty, the
customer can demand that the brand name replacement filter be
provided free of charge. Should such a demand be rejected, then the
customer should require that he be provided with a copy of the
warrantor's approved FTC application for a waiver. The customer
should also be aware that he may have additional legal rights under
applicable state warranty law which may vary from state to state."
Areas of caution when dealing with warranty work: The Magnuson-Moss
Act requires that if a written warranty is made, that it be made
available to consumers to read before a product is purchased. The
warranty must include, among other items: • a statement of what the
consumer must do and expense he must bear • exceptions and
exclusions from the terms of the warranty • the step-by-step
procedure which the consumer should take in order to obtain
performance of any obligation under warranty, including the
identification of any person or class of persons authorized to
perform the obligations set forth in the warranty. An FTC
spokesperson we contacted advised that coverage depends on how each
warranty is written. It would seem best, therefore, to ask customers
in this situation if they are familiar with their warranties. Advise
the customers of their rights under the Magnuson-Moss Act. Recommend
that they direct specific questions regarding their warranty work to
the dealer, and that they get answers in writing. Preventive
Maintenance. For The Life Of Your Vehicle.
943 Blue River Parkway
New and used car dealers are notorious for
their claims that only they can provide warranty work on a car or
truck that they sell. Some have gone so far as to state that a
warranty will be rendered invalid if anyone other than a dealer's
service department does the work, or if any product other than a
brand-name product is used. This practice was one of a number of
questionable tactics that led to the enactment of the Magnuson-Moss
Warranty Act in 1975. The Magnuson-Moss Warranty Act is a component
of the Federal Trade Commission Improvement Act, and was passed in
an effort to "improve the adequacy of information available to
consumers, to prevent deception, and improve competition..." It
mandates disclosures designed to enhance consumer protection through
awareness of implied and express warranties attached to products and
services. The relevant portions of the Act, as they have been
applied by several Grease Monkey franchisees are: "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
defined 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."
A clearly-written explanation of this provision contained in
Pennzoil Product Bulletin #323, from which we quote the following:
"Under the Magnuson-Moss Warranty Act general principles of the
Federal Trade Commission Act, a manufacturer may not require the use
of any brand of filter, or any other part, unless the manufacturer
provides the item free of charge under the terms of the warranty. An
equipment manufacturer can obtain a waiver if it proves to the FTC
that the equipment would function properly only if certain brands of
filters or other parts are used. The FTC must be satisfied that this
is in public interest, and this waiver must be published in the
Federal Register. This is a "waiver" of the prohibitions on
conditions of written warranty. "Should a customer be told that only
a brand name oil filter can be used under a written warranty, the
customer can demand that the brand name replacement filter be
provided free of charge. Should such a demand be rejected, then the
customer should require that he be provided with a copy of the
warrantor's approved FTC application for a waiver. The customer
should also be aware that he may have additional legal rights under
applicable state warranty law which may vary from state to state."
Areas of caution when dealing with warranty work: The Magnuson-Moss
Act requires that if a written warranty is made, that it be made
available to consumers to read before a product is purchased. The
warranty must include, among other items: • a statement of what the
consumer must do and expense he must bear • exceptions and
exclusions from the terms of the warranty • the step-by-step
procedure which the consumer should take in order to obtain
performance of any obligation under warranty, including the
identification of any person or class of persons authorized to
perform the obligations set forth in the warranty. An FTC
spokesperson we contacted advised that coverage depends on how each
warranty is written. It would seem best, therefore, to ask customers
in this situation if they are familiar with their warranties. Advise
the customers of their rights under the Magnuson-Moss Act. Recommend
that they direct specific questions regarding their warranty work to
the dealer, and that they get answers in writing. Preventive
Maintenance. For The Life Of Your Vehicle.