The Federal trade commission and the Magnuson-Moss Act

Written by Dave Facciuto

March 14, 2016

 

A customer recently commented to us about seeing a regular amount of Mini Cooper automobiles in our facility for service. He remarked to us that he had been taking his Mini Cooper sedan to Portland for routine service. Now for those of you not familiar with our minis 005location here in Medford Oregon, that is approximately 300 miles away. When I asked him why he would do that he said that he was informed by the dealer that he had to bring it back to them for all service or it would void his warranty.

You see this was indeed a clear violation of the Magnuson- Moss warranty Act https://www.consumer.ftc.gov/articles/0138-auto-warranties-routine-maintenance which states that anyone can service your vehicle as long as you retain your receipts. Here is an excerpt from the FTC that recently busted BMW of North American for this violation:

The Federal Trade Commission (FTC) has approved a final consent order against BMW of North America, whose MINI Division allegedly violated the Magnuson-Moss Warranty Act by telling consumers that BMW would void their warranty unless they used MINI parts and MINI dealers to perform maintenance and repair work

In March 2015, BMW agreed to settle FTC charges that, through its MINI Division, it violated a Warranty Act provision that prohibits companies from requiring consumers – in order to maintain their warranties – to use specific brands of parts or specified service centers, unless the part or service is provided to the consumer without charge.

U.S. Senator Richard Blumenthal (D-Conn.) issued the following statement in response to the FTC action, “Consumers have a right to shop around when their car needs servicing or repairs. Unfortunately, car manufacturers too commonly deceive, mislead and scare consumers into believing their warranties will be voided if they use a local shop. The unanimous approval of this final consent order should serve as a wake-up call to any car manufacturer who has misled consumers with false information to bolster their bottom line. The FTC’s action is a critical step in ending this shameful violation of consumer rights.”

The consent order with BMW, which will remain in effect for 20 years, prohibits BMW from violating the Warranty Act regarding any MINI Division good or service. It also:

  • bars BMW from representing that, to ensure a vehicle’s safe operation or maintain its value, owners must have routine maintenance done only by MINI dealers or MINI centers; and,

Requires BMW to notify affected MINI owners of their right to use third-party parts and service without voiding warranty coverage, unless BMW provides such parts or service for free.

https://www.ftc.gov/news-events/press-releases/2015/03/bmw-settles-ftc-charges-its-mini-division-illegally-conditioned

So know your rights, you can have your car serviced wherever you please, you can even do the work yourself!

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