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Overview: Magnuson-Moss Warranty Act
Anyone who has ever purchased a defective product knows how frustrating it can be — especially if the purchase was made in reliance on a warranty. Sometimes referred to as the “federal lemon law,” the Magnuson-Moss Warranty Act helps protect the rights of consumers and provides certain legal remedies. It also sets forth specific obligations and requirements that businesses must comply with when providing consumers with a written warranty.
Passed in 1975 by Congress, the Magnuson-Moss Warranty Act is a federal statute that helps ensure consumers receive the information they need to compare warranties on consumer products. The Act requires businesses that offer warranties on their products to provide detailed information to consumers so they can be fully informed before making their purchase. By having access to clear information about a product’s warranty, consumers can select the product that best suits their needs.
It’s important to understand that the Magnuson-Moss Warranty Act doesn’t specifically require companies, manufacturers, or retailers to provide consumers with warranties. However, if a business chooses to offer written warranties, it must meet the Act’s requirements. The Act does not cover warranties or promises made verbally.
The Magnuson-Moss Warranty Act is a federal law; some states, like California, also have their own warranty protection laws.
What Are the Requirements of the Magnuson-Moss Warranty Act?
The Magnuson-Moss Warranty Act imposes a number of requirements on warrantors regarding how information about warranty coverage must be conveyed to consumers. However, there are three basic requirements that warrantors and sellers must follow.
- Warrantors must ensure written warranties are titled either “full or “limited.”
- Warrantors must clearly state the information about the warranty coverage in one document that’s easy to read.
- Both sellers and warrantors must ensure that warranties are available to consumers so they can read them before making their purchase.
Importantly, the Act prohibits deceptive or misleading warranty terms. It also doesn’t permit businesses to disclaim implied warranties — unless it is a “limited” written warranty, in which case it can be restricted to the specified duration.
Additionally, “tie-in sales” that compel consumers to purchase particular products in order to keep their warranty coverage are disallowed under the Act.
What Does the Magnuson-Moss Warranty Act Cover?
Many consumer products come with written warranties — including products that you might not even think would have them.
While most people associate the Magnuson-Moss Warranty Act with vehicles or home appliances, the Act covers a broad scope of consumer products that come with warranties. For instance, claims of Magnuson-Moss Warranty Act violations have recently been raised in lawsuits concerning restaurant food, energy drinks, over-the-counter drugs, and dog food.Â
The Act helps protect consumers from most types of defective products, as long as they have a written warranty. However, it doesn’t apply to service warranties and products that are resold or sold for commercial use. Â
What Remedies Do Consumers Have Under the Magnuson-Moss Warranty Act?
The Magnuson-Moss Warranty Act makes a breach of warranty a violation of federal law. Consumers are offered several different remedies to recover their damages under the Act.
The Act allows a consumer to commence a lawsuit alleging Magnuson-Moss Warranty Act violations. A plaintiff may recover economic damages as well as court costs and attorneys’ fees under the Act. Typically, lawsuits alleging claims of Magnuson-Moss Warranty Act violations are brought in state court, but they can also be heard in federal court as part of a class action lawsuit.
Additionally, the Magnuson-Moss Warranty Act encourages businesses to resolve their warranty disputes with consumers outside of court. The Act permits businesses to include a provision in their warranties requiring that customers attempt to settle disputes using mediation or arbitration prior to bringing a lawsuit. Companies that include this type of provision in their warranties must also comply with the FTC’s Dispute Resolution Rule.
