As readers of the blog know, we have written previously about the importance of periodically reviewing warranty language to avoid scrutiny from the Federal Trade Commission (FTC).   This week, the FTC blog published another article entitled “The latest word of warranties.”

In the post, the FTC offered the following guidance:

If your business offers warranties, here are some steps to consider:

  • Read your warranties to see if they prohibit a consumer from using other sellers’ parts or services – or if consumers might read your warranty to imply that. Conform your policies to the just-announced clarifications to the Warranty Act’s Interpretations.
  • Check your website to make sure your warranties are posted close to the warranted products.
  • Review your warranties and service contracts to ensure all material terms and conditions are disclosed clearly and conspicuously.
  • Read the FTC’s brochure, A Businessperson’s Guide to Federal Warranty Law.

My take on this post is that it reaffirms that the FTC continues to focus on consumer warranties and ensuring that a normal consumer would be able to understand what is and what is not covered.  Ultimately, a warranty is only good if it can be enforced so there needs to be balance between disclaiming liability and offering service to consumers.