Are You Providing Your Warranty Correctly? Congress Just Passed a Law!

15 October 2015 Dashboard Insights Blog
Author(s): Jeffrey A. Soble

Believe it or not, Congress passed a law. That law impacts how you, Automotive Industry Company, are providing your warranties (hopefully, limited warranties with limited remedies – but that is a topic for another post). The E-Warranty Act of 2015 now permits disclosure of consumer warranty terms via the “manufacturer’s” website. That is right Automotive Industry, the Magnuson-Moss Warranty Act has been amended.

Should be straightforward right? Not exactly. No one can really know yet because the FTC has one year to harmonize its existing Pre-Sale Availability Rule with this new amendment. Regardless, two things are clear: first, if a consumer requests warranty text in any way, it must be provided. Second, at the “point-of-purchase”, the warrantor must provide a way to see the warranty. Therefore, if the warranty is on a webpage, the warrantor must have a means available – computer, tablet, phone, paper, etc. – that can quickly pull up the warranty upon request.

Did things change? Maybe. Will they change more? Probably. Rich Casper has helpfully provided more detail in a Legal News Alert titled, appropriately, “President Signs Consumer Warranty Amendment.”

Regardless, we can all be excited that Congress passed legislation, and the President signed it. That alone may be news.

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