Business Blog
Nixing the Fix: Warranties, Mag-Moss, and restrictions on repairs
First, the bad news: That nifty purchase needs a repair. Now the good news for consumers: It’s still under warranty. But where can they go to get it fixed? Can the manufacturer restrict a consumer’s ability to go to the independent repair shop of their choice? Can the manufacturer use glue, non-standard screws, and proprietary diagnostic software that make it difficult for independent repair shops to fix things? Do limitations like these affect consumers’ rights under the Magnuson-Moss Warranty Act? That’s the topic of Nixing the Fix: A Workshop on Repair Restrictions, an FTC event scheduled for July 16, 2019.
Enforced by the FTC, the Magnuson-Moss Warranty Act helps consumers make informed buying decisions and gives them access to remedies if the widget starts to fidget during the warranty period. One key consumer protection under Mag-Moss is that the law prohibits manufacturers from conditioning warranty coverage on the use of particular products or services.
Here are some of the questions FTC staff intends to ask at Nixing the Fix:
- What’s the interplay between repair restrictions and the Magnuson-Moss Warranty Act’s anti-tying provision, which establishes that manufacturers can’t condition coverage on the use of parts or services identified by brand, trade, or corporate name?
- Do repair restrictions affect the market for extended warranties and service agreements?
- What types of restrictions are consumers running into when they try to get their stuff repaired?
- Are manufacturers’ restrictions having an impact on small fix-it businesses?
- Are manufacturers using software that may render products obsolete or unfixable if consumers engage in DIY or go to a local repair shop?
- Are repair restrictions necessary to reduce the risk of physical injury or to protect manufacturers from liability for products improperly repaired by others?
- Do consumers understand the effects of repair restrictions?
We’re also looking for empirical research and data about the prevalence and impact of manufacturers’ repair restrictions. For example, what can you tell us about code that disables products that have been repaired by someone other than the manufacturer, product designs that make third-party repairs difficult (like attaching batteries with glue only the manufacturer can remove), contractual post-sale or licensing restrictions, or proprietary diagnostic software and replacement parts? Please send us your research and data by April 30, 2019. Do you have suggestions about possible panelists? Email us at nixingthefix@ftc.gov.
Nixing the Fix will take place on July 16th at the FTC’s Constitution Center conference facility, 400 7th Street, S.W., in Washington, DC. It’s free and open to the public. You can file public comments online and we’ll keep the record open until September 16, 2019.
Follow the Business Blog for more information about the agenda and for watch-the-webcast instructions.
It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system, and user names also are part of the FTC’s computer user records system. We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.
The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.
We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. The comments posted on this blog become part of the public domain. To protect your privacy and the privacy of other people, please do not include personal information. Opinions in comments that appear in this blog belong to the individuals who expressed them. They do not belong to or represent views of the Federal Trade Commission.
In reply to A fatal flaw in current law by Stuart Hoff
Companies can’t void a consumer’s warranty or deny warranty coverage solely because the consumer uses a part made by someone else or gets someone not authorized by the company to perform service on the product.
There are only two exceptions: 1) if the company provides the article or service to consumers for free; or 2) if the company gets a waiver from the FTC. Under 15 U.S.C. § 2302(c), the FTC may grant a waiver only if the company proves that “the warranted product will function properly only if the article or service so identified is used in connection with the warranted product, and the waiver is in the public interest.”
A company may, however, disclaim warranty coverage for defects or damage caused by the use of unauthorized parts or service.
In reply to Companies can’t void a by FTC Staff
In reply to A fatal flaw in current law by Stuart Hoff
In reply to Will there be a video replay by Paul Gary
The event page says the workshop will be webcast live. It doesn't say if the event will be taped. You could ask Juliana Gruenwald Henderson in the Office of Public Affairs for more information.
In reply to what is registration process by mary b. moss
There is a link to the Workshop information page in this blog. Follow the link to read about how to register for the Workshop.
In reply to Does the Magnuson Moss Act by Tony DeVico
In reply to Does the Magnuson Moss Act by Tony DeVico