The FTC is Reminding Tech Manufacturers that Warranty Void Stickers are Illegal

The FTC is Reminding Tech Manufacturers that Warranty Void Stickers are Illegal

The Federal Trade Commission (FTC) recently sent letters to ASRock, Gigabyte, and Zotac reminding them that warranty void stickers covering screw holes on gadgets are illegal. The FTC’s concerns are not just superficial – they go beyond the surface of these stickers. The letters sent to the manufacturers urge them to change their warranty policies and review their customer support practices to ensure that they are not illegally threatening consumers’ warranties.

The FTC cited the federal Magnuson-Moss Warranty Act, which prohibits companies from making bad warranties or misrepresenting them. This law applies to consumer products costing more than five dollars, and it prevents warrantors from conditioning warranties on consumers using specific branded repair services. The letters sent to ASRock, Gigabyte, and Zotac highlighted the problematic clauses in their warranties that void the warranty if the outer case is opened or if the manufacturing sticker inside the product is removed or damaged. These clauses are in direct violation of the Magnuson-Moss Warranty Act.

The FTC informed ASRock, Gigabyte, and Zotac that they have copied and preserved the online pages in question and plan to review the companies’ written warranties and promotional materials after 30 days. The agency is taking action to ensure that these tech manufacturers comply with the law and do not continue to threaten consumers with voided warranties.

In 2018, the FTC addressed similar issues with Nintendo, Sony, Microsoft, Asus, HTC, and Hyundai regarding warranty void stickers on game consoles. Nintendo, Sony, and Hyundai updated their policies shortly after being notified by the FTC. Asus also reevaluated its customer support and warranty practices following an investigation by Gamers Nexus. It is evident that the FTC is committed to holding tech manufacturers accountable for illegal warranty practices.

According to iFixit, warranty void stickers may be legal in some parts of the world. However, in the United States, these stickers are considered unlawful under the Magnuson-Moss Warranty Act. Companies like Asus have had to reassess their warranty policies and customer support in light of investigations and warnings from regulatory agencies like the FTC.

Tech manufacturers must ensure that their warranty policies comply with federal laws like the Magnuson-Moss Warranty Act to avoid facing penalties and legal action from the FTC. Consumers should also be aware of their rights when it comes to warranty coverage and not be misled by illegal warranty void stickers.

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