FTC: The Big Warranty Controversy

It seems the biggest names in the gaming industry may face legal action from the FTC. The Federal Trade Commission gave 6 companies notice earlier this April for telling customers that 3rd party repairs would void their warranty. Here is the lowdown.

FTC: The Big Warranty Controversy
Have you been putting off cleaning the insides of your Xbox One because you don't want to tear that infamous warranty sticker? Even if your console is not quite working due to some internal issue and you have the technical know how to sort it out your self, you rip that sticker off and your relationship with the consoles company could be over. Well, it shouldn't be. According to the FTC (Federal Trade Commission), this is illegal. Apparently, the FTC sent a notice out to 6 companies earlier this April and that they had 30 days to change their policies or they may face legal action. Motherboard got their hands on a letter sent to the companies in question that said:

This letter places you on notice that violations of the Warranty and FTC Acts may result in legal action. 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.

The FTC believes the companies in question violate the 1975 Magnuson-Moss Warranty Act, which states that no manufacturer that charge more than $5 for a product may put repair restrictions on a device that it is offering a warranty on. This means that it should be perfectly acceptable to have 3rd party repairs without voiding the warranty. But the biggest problem with consoles is the inevitable dust buildup inside. Hopefully, these legal changes will mean that maintaining consoles will be less expensive and less stressful.

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