Recently, the Federal Trade Commission (FTC) sent letters to tech companies ASRock, Gigabyte, and Zotac, reminding them that “warranty void if removed” stickers are illegal. The FTC’s concerns go beyond the physical stickers and delve into the companies’ warranty and customer support practices. In the letters, the FTC warns the manufacturers to revise their warranties and review their customer support policies to ensure that they are not unlawfully threatening customers’ warranty coverage.
One excerpt from the letters reads, “Staff would be concerned if GIGABYTE, in practice, denied warranty coverage based on the warranty provisions quoted above or any similar provision.” This statement highlights the FTC’s firm stance against companies using warranty threats to limit customers’ rights. ASRock’s warranty, for example, explicitly states that the warranty will be void if the product is modified, damaged, or tampered with in any way. Similarly, Gigabyte’s warranty mentions that removing or damaging the manufacturing sticker inside the product would nullify the warranty.
Federal Law Protects Consumer Rights
The right-to-repair law invoked by the FTC in this case is not a state-specific regulation but the federal Magnuson-Moss Warranty Act. This act aims to prevent companies from enforcing unfair warranties and misleading customers about their rights. Specifically, the Warranty Act prohibits companies from tying written warranties to the use of specific branded articles or services unless provided for free or approved by the FTC.
The FTC has informed ASRock, Gigabyte, and Zotac that it will monitor their online pages, written warranties, and promotional materials for compliance with the law. Failure to make the necessary changes within 30 days could lead to further action by the agency. This move by the FTC is reminiscent of a similar warning issued to Nintendo, Sony, and Microsoft in 2018 regarding their game console warranties. Following the FTC’s intervention, these companies updated their policies to align with the law.
Industry Response and Global Perspective
In response to scrutiny from the FTC and consumer advocates, tech companies like Asus have started reconsidering their customer support and warranty practices. While some companies have promptly adjusted their policies, others continue to use “warranty void if removed” stickers despite legal challenges. iFixit, a popular tech repair website, has highlighted the legality of these stickers in different parts of the world, shedding light on the varying interpretations of consumer rights and protection.
Overall, the FTC’s recent actions serve as a reminder to tech companies that they must uphold fair warranty practices and refrain from using deceptive tactics to limit customers’ rights. By enforcing the Magnuson-Moss Warranty Act, the FTC aims to create a level playing field for consumers and encourage transparency in the tech industry. As companies navigate the evolving landscape of consumer rights and regulations, it is essential for them to prioritize ethical practices and compliance with federal laws to build trust with their customers.