Tech And Car Giants Warned By FTC Over Warranty Issues

Customers rely on the warranty that they receive from companies to feel safe about their purchase of the products. This is why it’s an issue whenever companies try to take advantage of this fact by squeezing in a few details in the agreement that might be to consumers’ disadvantage. The Federal Trade Commission (FTC) is now warning several technology and car giants about this matter.

The warning letter was sent by the FTC to six companies, so far, which include Microsoft, Nintendo, Sony, HTC, Asus, and Hyundai. The warning concerns conditions regarding third-party products and services, as well as the matter of the warranty stickers remaining intact, Fortune reports. Apparently, some of what these companies have been doing is illegal.

The information regarding which companies were warned was not released by the FTC itself. Rather, it was obtained by Motherboard after it filed a request to the commission. So now, the companies, in question only have 30 days since the warning was sent to get rid of the conditions that the commission takes issue with.

“This letter places you on notice that violations of the Warranty and FTC Acts may result in legal action,” the letter reads pertaining to certain parts of the websites of these companies. “ FTC investigators have copied and preserved the online pages in question, and we plan to review your company's written warranty and promotional materials after 30 days. You should review the Warranty and FTC Acts and if necessary, revise your practices to comply with the Acts' requirements. By sending this letter, we do not waive the FTC's right to take law enforcement action and seek appropriate injunctive and monetary remedies against [company name] based on past or future violations.”

Over the years, there has been a contentious debate over the right of companies to demand that only they can service their products due to patent concerns. However, the government has often pushed back on this particular argument.