The Federal Trade Commission (FTC) recently sent letters to ASRock, Gigabyte, and Zotac highlighting the illegality of using “warranty void if removed” stickers on their products. The FTC expressed concerns that these companies are not just using these stickers at a surface level, but that their warranty and customer support practices may be illegally threatening consumers’ rights.
The particular law that the FTC is invoking, the federal Magnuson-Moss Warranty Act, aims to prevent companies from imposing unfair restrictions on consumer warranties. Under this act, companies cannot condition their written warranties on the use of specific articles or services identified by brand or corporate name unless certain conditions are met. The FTC is urging ASRock, Gigabyte, and Zotac to review and revise their warranty terms to comply with this law.
ASRock’s warranty explicitly states that the warranty will be void if products are tampered with in any way, such as opening the outer case or installing/removing additional components. Similarly, Gigabyte includes a provision that removes warranty coverage if the manufacturing sticker inside the product is removed or damaged. These statements directly conflict with the Magnuson-Moss Warranty Act and could be seen as deceptive practices.
The FTC has copied and preserved the online pages of the companies in question and plans to review their written warranties and promotional materials after 30 days. This regulatory action is aimed at holding companies accountable for misleading warranty practices and ensuring that consumers are not unfairly restricted from seeking repairs or modifications to their products.
Previous Instances
In 2018, the FTC issued warnings to companies like Nintendo, Sony, and Microsoft for similar warranty violations related to their game consoles. Following the FTC’s intervention, these companies updated their policies to comply with the Magnuson-Moss Warranty Act. The FTC’s scrutiny of ASRock, Gigabyte, and Zotac is part of a broader effort to enforce consumer protection laws and prevent companies from misleading customers with illegal warranty conditions.
Industry Trends
Asus and other companies have also faced scrutiny over their warranty and customer support practices in recent years. Manufacturers are increasingly reevaluating their warranty terms and support policies to align with consumer rights and regulatory standards. iFixit has highlighted the legality of “warranty void if removed” stickers in different regions, indicating a need for consistent enforcement of warranty laws across the industry.
Overall, the FTC’s actions against ASRock, Gigabyte, and Zotac send a clear message to manufacturers that misleading warranty practices will not be tolerated. By upholding the Magnuson-Moss Warranty Act, the FTC is safeguarding consumers’ rights to seek repairs and modifications without fear of voiding their warranties. Companies must review and revise their warranty terms to comply with the law and ensure transparency and fairness in their customer support processes.
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