FTC Warns Gaming Companies Over Warranty Stickers
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FTC Warns Gaming Companies Over Warranty Stickers:
The Federal Trade Commission has sent letters to eight companies, including leading makers of PC gaming rigs, warning them that their warranty language is a violation of the federal Magnuson-Moss Warranty Act (MMWA).
In a statement July 3rd, the Federal Trade Commission staff said statements that customers were required use authorized service providers or manufacturer supplied parts or risk voiding their warranty "may be standing in the way of consumers' right to repair products they have purchased." These "warning letters put companies on notice that restricting consumers' right to repair violates the law," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection in a published statement on the FTC website. "The Commission will continue our efforts to protect consumers' right to repair and independent dealers' right to compete."
Requiring consumers to use specified parts or service providers to keep their warranties intact is prohibited under the MMWA, unless warrantors provide the parts or services for free or receive a waiver from the FTC. The agency also warned that such statements may be considered deceptive business practices under the FTC Act. Letters issued to gaming hardware makersASRock,Zotac, andGigabyte,which market and sell gaming PCs, graphics chips, motherboards, and other accessories, specifically warned about the use of stickers stating that warranties are "void if removed."
In recent years the FTC has increased its scrutiny of companies warranty-related practices and re-exerted its authority to enforce laws like MMWA and other federal laws. It issued similar warnings to six companies in 2018 regarding MMWA violations. A study by PIRG of 50 home appliance makers that same year found that "the overwhelming majority (45) would void warranties due to independent or self-repair." Then, in 2022, the Commission issued orders requiring motorcycle maker Harley Davidson and grill maker Weber to take multiple steps to correct violations of the MMWA including to cease telling consumers that their warranties will be void if they use third-party services or parts, or that they should only use branded parts or authorized service providers. The FTC said it would seek civil penalties of up to $46,517 per violation in federal court.
The agency has also appealed to the public and businesses for stories of manufacturers forcing consumers to use authorized repair providers and threatening to void warranties for those that don't. The Commission has set up aspecial link for warranty or repair storiesand said it wants to hear about consumer experiences across a wide range of products - from cars, kitchen appliances, and cell phones to grills and generators.
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