FTC Settles with Mini Cooper for Violations of Federal Warranty Law

On March 19, the Federal Trade Commission announced a settlement with BMW of North America LLC and its MINI Division for alleged violations of Magnuson-Moss Warranty Act. The FTC alleged that MINI required all non-warranty repair and maintenance work to be completed at MINI dealerships, using MINI parts in order for consumers to maintain their new car warranty. The full press release is available here.

Federal warranty law prohibits tying provisions in warranty law. This prohibition prevents warranties from requiring a specific facility or a specific brand name part be used for non-warranty repairs, except in extremely limited circumstances. Federal warranty law not only applies to car manufacturers, but to any business offering its own warranty. If your business offers a product warranty separate from the manufacture, your business is subject to Magnuson-Moss.

If you have questions about warranty law or want your warranty reviewed for compliance, please contact Attorney Harrison at (614)440-1395 or via e-mail at aharrison@alharrisonlaw.com.