Illegal for Automaker to Tell You Your Warranty is Void Unless You Use Their Repair Facilities

Recent FTC actions confirm for consumers that your warranty is NOT void simply because you don’t use expensive dealer repair shops or use your own DIY skills In fact, the FTC reports, BMW of North America LLC has agreed to change its policies to settle Federal Trade Commission charges that the automaker’s Mini division violates consumer protection laws by telling customers their warranties will be voided unless they exclusively have their cars repaired by BMW Mini dealers. Under the proposed settlement announced publicly by the FTC, BMW agrees to provide affected Mini drivers with information about their right to use third-party parts and service without voiding warranty coverage. The FTC filed an administrative complaint against the automaker claiming it had violated a provision of the Magnuson-Moss Warranty Act that prohibits companies from requiring that consumers, in order to maintain their warranties, use specific brands of parts or specified service centers unless the part or service is provided to the consumer without charge. “It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said in a statement. “As a result of this order, BMW will change its practices and give Mini owners information about their rights.” Under the settlement, BMW is also required to refrain from telling customers that in order to ensure a vehicle’s safety or to maintain its value, they must have routine maintenance performed only by Mini dealers or Mini centers, “unless the representation is true, and BMW can substantiate it with reliable scientific evidence.” The settlement also makes clear that BMW neither admits nor denies the allegations in the FTC’s complaint. The FTC has re-affirmed the importance of automaker compliance with the Magnuson-Moss Warranty Act and addressed a few questions that may arise in relation to the provisions regarding repairs by nonbrand dealers or shops. “What happens if work done at an independent shop or by an owner trying a little DIY results in damage. For example, say a mechanic replaces a belt improperly and the engine gets messed up,” The FTC says. “The dealer or manufacturer may deny coverage under the warranty for that repair if it can demonstrate that the improper belt replacement – rather than some other problem – caused the damage.” “Of course, the warranty would still be in effect for any additional problems that pop up as long as those problems weren’t caused by the improper belt replacement,” the FTC added. If you have been scammed by automakers this way, call The Hanson Law Firm for advice.