Nintendo given 30 days to change warranty policies by the FTC
In April, the Federal Trade Commission warned six companies about warranty violations. Motherboard reports that Nintendo was one of those companies. Sony, Microsoft, Hyundai, HTC, and ASUS were the others.
In letters sent out to each company, the FTC states that customers have been illegally told about having their warranty voided by getting third-party repairs. Such information is relayed through stickers and messages in end user license agreements. It’s a violation of the 1975 Magnuson-Moss Warranty Act in that manufacturers charging over $5 for a product can’t put repair restrictions on a device its offering a warranty on.
Below are a couple of excerpts from the letter, which warns of legal action:
“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.”
“Warranty language that implies to a consumer acting reasonably under the circumstances that warranty coverage requires the consumer to purchase an article or service identified by brand, trade or corporate name is similarly deceptive and prohibited.”
Nintendo and the other companies were provided with 30 days to change their warranty policies. They could face legal action assuming the situation does not change.
