FTC Issued Final Rule Amendments Related to the E-Warranty Act (September 6, 2016)

Final Rule Amendments Related to the E-Warranty Act

September 6, 2016

The Federal Trade Commission (“FTC”) has finalized amendments to its Disclosure Rule and Pre-Sale Availability Rule to align with the E-Warranty Act. Originally established under the Magnuson-Moss Warranty Act in 1975, these rules set requirements for written warranties on products costing over $15, including specific language and clarity in disclosures.

The 2015 E-Warranty Act updated these provisions to permit warrantors to post warranty terms online, provided they also offer a non-Internet-based method for consumers to access this information. The amendments clarify how disclosures should appear on the face of online warranties and allow warrantors to display warranty terms online while still offering alternatives for obtaining that information without Internet access. Additionally, sellers can now provide pre-sale warranty terms either electronically or through traditional means if the warrantor has opted for online display.

These changes aim to enhance consumer access to warranty information while maintaining compliance with existing consumer protection standards.

 

For more information, see here: https://www.ftc.gov/news-events/press-releases/2016/09/ftc-issues-final-rule-amendments-related-e-warranty-act

 

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