The FTC’s investigation revealed that these PC companies have been including deceptive warranty terms that claim consumers will void their warranties if they open or modify their devices. However, the Magnuson-Moss Warranty Act (MMWA), a federal law, prohibits such practices unless the company can demonstrate that the consumer’s actions directly caused the need for repair. The FTC has ordered the companies to stop these unlawful warranty practices immediately and to clearly inform consumers of their right to repair their devices without voiding the warranty. All three manufacturers are given a 30-day period to update their promotional and warranty information on their websites to indicate the updated information. Failure to comply with the FTC’s directives could result in significant fines and further legal action.
FTC Issues Warning to ASRock, Zotac, and GIGABYTE About Warranty Practices
The United States Federal Trade Commission (FTC) has taken action against three prominent PC companies, ASRock, Zotac, and GIGABYTE, for their unlawful warranty practices. The FTC has issued stern warnings, urging these companies to immediately cease their actions that have been found to be in violation of consumer protection laws. The trio has been engaging in practices that unfairly restrict consumers’ ability to repair or modify their own devices with the “warranty void if removed” stickers. The FTC has made it clear that these companies cannot void warranties or deny service simply because a consumer has opened or repaired their product. “Consumers have a right to repair their own products, and companies shouldn’t make that harder by putting up illegal barriers,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, adding that “Manufacturers who try to circumvent the law will face the consequences.”