Do you provide a warranty for a consumer product or a combination sale of a product and service? Here are 3 essential rules to keep in mind.
The Magnuson-Moss Warranty Act (the Act) sets specific requirements for the warrantor of consumer products and combination sales of a product and service when providing a written warranty. Here are the basics you need to know.
1️⃣ Disclosure Rule
✔️ All consumer product warranties must be titled “full” or “limited”
✔️ Limited warranties must be made available in a single, clear, easy-to-read document
2️⃣ Pre-sale Availability Rule
✔️ The warrantor and seller must ensure that warranties are available wherever consumer products are sold, with the exception of products that retail for $15.00 or less
3️⃣ Dispute Resolution Rule
✔️ Makes it easier for consumers to take a company to court
✔️ Creates a framework for companies to set up procedures for resolving disputes informally and with minimal expense
📚 The Act also prohibits specific types of conduct
❌ You are not allowed to disclaim or modify implied warranties, such as the warranty of merchantability, during the term of your express warranty or condition warranty service on registration or return of warranty card
❌ You are not allowed to include a tie-in sales provision in your warranty, which ties your warranty coverage to the use of the warrantor’s parts or service providers
📚 State specific warranty laws
✔️ Some states have warranty laws applicable to specific types of products, such as cars or recreational vehicles, and are intended to provide additional protections to the buyer
✔️ Some states have laws specifically applicable to extended warranties or service contracts and are more of a form of insurance
✔️ Check your state for more information! California’s Song-Beverly Act is the strictest state warranty law in America with numerous requirements
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