FTC Warns 8 Companies for Violating Consumers’ Repair Rights

Some companies placed stickers on products in a way that hindered customers from repairing them, said the agency.
FTC Warns 8 Companies for Violating Consumers’ Repair Rights
The Federal Trade Commission (FTC) building is seen in Washington, D.C., on Sept. 19, 2006. (Paul J. Richards/AFP via Getty Images)
Naveen Athrappully
Updated:
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The U.S. Federal Trade Commission (FTC) sent letters to eight companies warning that their warranty policies could be violating customers’ right to repair products they’ve purchased.

The letters focus on a breach of the Magnuson-Moss Warranty Act (MMWA), a law enforced by the FTC that governs consumer product warranties, according to a July 3 press release.

Five of the firms allegedly maintained that consumers should only use specific parts or service providers if they wanted to keep their warranties intact.

“Unless warrantors provide the parts or services for free or receive a waiver from the FTC, such statements are generally prohibited by the MMWA. Similarly, such statements may be deceptive under the FTC Act,” the FTC stated.

The five companies were InMovement, a treadmill company, and four air purifier manufacturers—Aeris Health, Blueair, Medify Air, and Oransi.

The remaining three letters were sent to ASRock, Zotac, and Gigabyte—firms engaged in the sales and marketing of PCs, motherboards, graphics chips, and other accessories. The FTC warned the tech companies against using stickers with “warranty void if removed” or similar language. The stickers were found to have been placed on products in a way that impeded consumers from conducting routine maintenance or repairs.

While the FTC is pushing for a consumer’s right to repair products, critics have warned against promoting these practices.

A recent report from the CATO Institute pointed out that “tinkering” with certain products can have downsides. Some products come with “intricately crafted” hardware and software which neither the consumer nor third-party repair shops are trained to repair.

The report gave an example of a microprocessor embedded in internal combustion engine vehicles that regulates the engine’s adherence to emission standards. Allowing third parties to modify vehicles allows them to make amendments in a way that defeats the set emission limits.

Owners may alter engines to ensure greater speed, thus compromising safety on the road, the report stated. Given the risks, pushing stringent right-to-repair legislation could result in “a reduction in quality, performance, consumer safety, and the environment,” the institute warned.

Meanwhile, the FTC asked the eight companies who received the letters to review their promotional and warranty materials and make sure that such coverage is not restricted to using specific parts or services.

The FTC staff plan on reviewing the websites of companies after 30 days. Any failure to correct potential violations could trigger legal action.

The Epoch Times reached out to the companies for comments.

Brian Angel, CEO of InMovement, said in an emailed statement to The Epoch Times that he is unaware of the letter and the related policy. “We had never even heard of the Magnuson-Moss Warranty Act,” he said, adding that InMovement will strive to remain “compliant.”

Warranty Rights

The U.S. Public Interest Research Group (PIRG), a consumer advocacy group, welcomed the FTC decision.

“A warranty is a federally protected right, not a privilege that a manufacturer can dangle to convince product owners to use the manufacturers’ repair services,” said Nathan Proctor, the senior director of PIRG’s Right to Repair Campaign.

“Repair saves consumers money, and cuts unnecessary electronic waste. It’s clear that the FTC is stepping up their work to protect our Right to Repair, which is good news for our pocketbooks and the planet. All manufacturers should take notice.”

According to PIRG, there are 30 states in the United States with active right-to-repair legislation. This includes Arizona, California, Colorado, Delaware, Hawaii, Illinois, Kentucky, Indiana, Massachusetts, New York, Oregon, Pennsylvania, and Washington.
In December, the National Association of Manufacturers, which represents 14,000 member companies, published a report claiming that right-to-repair regulations would harm both consumers and businesses.
Enacting such laws could make manufacturers vulnerable to property theft, disrupt supply chains, while pushing up costs for customers, and boosting the emission of greenhouse gasses, it said.

When it comes to devices with tech components, getting these products serviced by certified technicians is a way that manufacturers seek to protect the data they collect.

The report warned that bad actors could infiltrate the device, and if it’s connected to a network of other devices, criminals could open a gateway to access all other devices, the report warned.

At the federal level, right-to-repair regulations “would ultimately alter how manufacturers operate their businesses, and there is no guarantee that consumers would benefit, as manufacturers would be forced to change the way their products perform, altering both the cost and user experience of their products,” the report states.