One of the most interesting developments in the Right to Repair movement is the sudden (and welcome) interest and involvement of the Federal Trade Commission in policing illegal and restrictive anti-repair practices by major manufacturers and corporations.
Promoting competition and free trade and policing anti-competitive practices is, of course, what the FTC was created and empowered to do. But for much of the past three decades, the agency has been (mostly) silent, as companies got comfortable ignoring federal laws and engaging in practices that were explicitly barred by federal laws like the Magnuson Moss Warranty Act and Sherman Anti Trust Act.
Back in 2018, for example, the FTC made a big deal about sending warning letters to six companies selling automobiles, gaming systems and “cellular devices” for illegal restrictions on warranties. (Ars Technica did some Googling to make an educated guess about the identities of some of the unnamed firms.) But even that action was belated - coming years after public reports about rampant violations of language in Magnuson Moss and the Sherman Anti Trust Act by illegally voiding warranties when owners repaired their own devices, or sent them to third party repair providers.
Eventually, those rampant abuses ceased and the illegal “Warranty Void if Removed” stickers came off new electronics. But that didn’t stop companies and manufacturers from selling customers on the idea that any attempt to repair their device short of bringing it back to the dealer or authorized repair provider would sever the protections offered by the warranty.
However, the FTC in recent months has taken a much more aggressive stand on anti-repair practices and warranty shenanigans. In a statement in July 2021, new FTC Chair Lina Khan said repair restrictions “can significantly raise costs for consumers, stifle innovation, close off business opportunity for independent repair shops, create unnecessary electronic waste, delay timely repairs, and undermine resiliency.” She called on consumers to report violations. And, in recent weeks, the FTC has started to pick some of the low hanging fruits of that effort: reaching settlements with three major firms: motorcycle maker Harley Davidson, portable generator manufacturer Westinghouse and grill maker Weber for violating the protections offered by Magunson Moss and the Sherman Anti Trust Act, telling customers that they were bound to use OEM parts and service providers to retain the protections offered by their product warranties. In all three cases, the Commission voted 5-0 against the firms, underscoring the bi-partisan support for knocking down such rampant violations of consumer protection laws.
Which brings us to the topic of this Friday’s repair chat. We all know that the three companies dinged by the FTC are the tip of the iceberg and that lots of companies are floating illegal restrictions on product warranties designed to pad their bottom lines.
Do you have examples of warranty restrictions that sound fishy? “Void if removed” stickers (they’re still out there) or language telling you that opening your device will void the warranty protections? If so, share them! We want to hear your story!
Friday repair chat: got illegal warranty restrictions?
Friday repair chat: got illegal warranty restrictions?
Friday repair chat: got illegal warranty restrictions?
One of the most interesting developments in the Right to Repair movement is the sudden (and welcome) interest and involvement of the Federal Trade Commission in policing illegal and restrictive anti-repair practices by major manufacturers and corporations.
Promoting competition and free trade and policing anti-competitive practices is, of course, what the FTC was created and empowered to do. But for much of the past three decades, the agency has been (mostly) silent, as companies got comfortable ignoring federal laws and engaging in practices that were explicitly barred by federal laws like the Magnuson Moss Warranty Act and Sherman Anti Trust Act.
Back in 2018, for example, the FTC made a big deal about sending warning letters to six companies selling automobiles, gaming systems and “cellular devices” for illegal restrictions on warranties. (Ars Technica did some Googling to make an educated guess about the identities of some of the unnamed firms.) But even that action was belated - coming years after public reports about rampant violations of language in Magnuson Moss and the Sherman Anti Trust Act by illegally voiding warranties when owners repaired their own devices, or sent them to third party repair providers.
As Jason Koebler of Vice noted in his story from 2016, for example:
Eventually, those rampant abuses ceased and the illegal “Warranty Void if Removed” stickers came off new electronics. But that didn’t stop companies and manufacturers from selling customers on the idea that any attempt to repair their device short of bringing it back to the dealer or authorized repair provider would sever the protections offered by the warranty.
However, the FTC in recent months has taken a much more aggressive stand on anti-repair practices and warranty shenanigans. In a statement in July 2021, new FTC Chair Lina Khan said repair restrictions “can significantly raise costs for consumers, stifle innovation, close off business opportunity for independent repair shops, create unnecessary electronic waste, delay timely repairs, and undermine resiliency.” She called on consumers to report violations. And, in recent weeks, the FTC has started to pick some of the low hanging fruits of that effort: reaching settlements with three major firms: motorcycle maker Harley Davidson, portable generator manufacturer Westinghouse and grill maker Weber for violating the protections offered by Magunson Moss and the Sherman Anti Trust Act, telling customers that they were bound to use OEM parts and service providers to retain the protections offered by their product warranties. In all three cases, the Commission voted 5-0 against the firms, underscoring the bi-partisan support for knocking down such rampant violations of consumer protection laws.
Which brings us to the topic of this Friday’s repair chat. We all know that the three companies dinged by the FTC are the tip of the iceberg and that lots of companies are floating illegal restrictions on product warranties designed to pad their bottom lines.
Do you have examples of warranty restrictions that sound fishy? “Void if removed” stickers (they’re still out there) or language telling you that opening your device will void the warranty protections? If so, share them! We want to hear your story!