WASHINGTON (Legal Newsline)
— The Federal Trade Commission (FTC) has announced final amendments to its
Disclosure Rule and Pre-Sale Availability Rule that affects the E-Warranty Act.
The Magnuson-Moss Warranty
Act (MMWA), enacted in 1975, includes a disclosure rule promulgated by the FTC
that provides specific rules for written warranties on products costing more
than $15. The guidelines also specify language for certain disclosures and
mandate simple language in a single document.
The FTC also promulgated the
Pre-Sale Availability Rule under the MMWA, which details how warrantors and
sellers must give the terms of a warranty before selling a product.
In 2015, the E-Warranty Act
was created, amending the MMWA and making it so that warrantors could post
their terms online. To post online, however, the warrantor needed to provide a
non-Internet-based method as well. The new act also allowed select sellers to
use electronic methods to display terms of warranty pre-sale.
In 2016, the FTC developed
proposed amendments that finalized how a warrantor could display terms online.
Under the amendment, warrantors will need to provide information on how a
consumer can gain access to non-Internet-based warranty information.
can supply pre-sale warranty terms online or through conventional means – if
the warrantor has chosen to display its warranty terms online. The FTC sought
public comment on the rule in May, and now has approved the rule in the Federal