FTC Warns of Predatory Warranty Programs by Microsoft, Sony, Nintendo, HTC, & ASUS

Last month, we published an article detailing the FTC addressing predatory warranty conditions, and in so doing, the FTC notified six companies of infractions violating the Magnuson-Moss Warranty Act. At the time of that writing, the names of the notified companies were not disclosed; however, Motherboard obtained the names via a Freedom of Information Act request, and they are as follows:

• Sony
• Microsoft
• Nintendo
• Hyundai
• HTC
• ASUS

Notably, all the big console players are here—and perhaps the guiltiest when it comes to “warranty void if removed” stickers and “seals”, something the FTC directly addresses in their letters to the respective companies. In a previous article, we mention that these seals and stickers are blatantly illegal under the Magnuson-Moss Warranty Act, as is warranty language that obfuscates a consumers rights under the law.

The FTC has given all the above-mentioned companies 30 days to change their warranty policies or face potential legal action. Amazingly absent is Apple, a company well known for their stance against third-party repairs.      

- Eric Hamilton