FTC Warns Gaming Companies Over Warranty Stickers
Roundups

FTC Warns Gaming Companies Over Warranty Stickers

Every week, we get a roundup of recent developments in Right to Repair news, courtesy of Paul Roberts from Fight to Repair, a reader-supported publication. Sign up to receive updates in your inbox. (It’s free!) Or become a premium subscriber for access to exclusive content and live events!

The Federal Trade Commission has sent letters to eight companies, including leading makers of PC gaming rigs, warning them that their warranty language is a violation of the federal Magnuson-Moss Warranty Act (MMWA).

In a statement July 3rd, the Federal Trade Commission staff said statements that customers were required use authorized service providers or manufacturer supplied parts or risk voiding their warranty “may be standing in the way of consumers’ right to repair products they have purchased.” These “warning letters put companies on notice that restricting consumers’ right to repair violates the law,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection in a published statement on the FTC website. “The Commission will continue our efforts to protect consumers’ right to repair and independent dealers’ right to compete.”

Requiring consumers to use specified parts or service providers to keep their warranties intact is prohibited under the MMWA, unless warrantors provide the parts or services for free or receive a waiver from the FTC. The agency also warned that such statements may be considered deceptive business practices under the FTC Act. Letters issued to gaming hardware makers ASRockZotac, and Gigabyte, which market and sell gaming PCs, graphics chips, motherboards, and other accessories, specifically warned about the use of stickers stating that warranties are “void if removed.”

In recent years the FTC has increased its scrutiny of companies warranty-related practices and re-exerted its authority to enforce laws like MMWA and other federal laws. It issued similar warnings to six companies in 2018 regarding MMWA violations. A study by PIRG of 50 home appliance makers that same year found that “the overwhelming majority (45) would void warranties due to independent or self-repair.” Then, in 2022, the Commission issued orders requiring motorcycle maker Harley Davidson and grill maker Weber to take multiple steps to correct violations of the MMWA including to cease telling consumers that their warranties will be void if they use third-party services or parts, or that they should only use branded parts or authorized service providers. The FTC said it would seek civil penalties of up to $46,517 per violation in federal court.

The agency has also appealed to the public and businesses for stories of manufacturers forcing consumers to use authorized repair providers and threatening to void warranties for those that don’t. The Commission has set up a special link for warranty or repair stories and said it wants to hear about consumer experiences across a wide range of products  – from cars, kitchen appliances, and cell phones to grills and generators.

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More News

  • New report finds so-so compliance with New York repair law: It’s been over half a year since the nation’s first ever electronics right to repair law went into effect in New York State. So how are manufacturers doing when it comes to complying with the requirements of the law? So-so, according to a new report by the PIRG Education Fund. The report, Leaders and Laggards in New York, surveyed 21 different products covered by the New York law, from 17 different manufacturers and rated them on a scale of 0 to 20 for compliance with the state’s Right to Repair Law, which was signed by Governor Kathy Hochul in December 2022 and took effect December 28, 2023, covering a wide range of electronic goods sold in the state after that date.
  • Nikon publishes repair manual for new, $1,600 camera: Nikon made news in May when it launched a self-service repair program and unveiled a web page devoted to repairing its cameras. The site was sparsely populated at the time, with just a few manuals. But it seems that Nikon is becoming increasingly serious about its new DIY repair effort, posting a repair manual for its new Nikon Z6 III camera just weeks after the device was unveiled. Nikon has also increased the number of repair manuals available on the web site to include other current camera bodies.
  • Apple declares iPhone X, original AirPods ‘Vintage,’ heading to ‘Obsolete’: Apple has officially classified the iPhone X, first-generation HomePod, and original AirPods as “vintage” products, FastCompany reports. The “vintage” designation means the devices were discontinued “more than five but less than seven years ago.” It signals declining support. Specifically: Apple Stores and Apple Authorized Service Providers will still provide repairs for these devices, but only as long as parts remain available. The iPhone X was introduced in 2017 and notable for being the first iPhone with an all-screen design and gesture-based navigation, eliminating the Home button. The first-generation AirPods, launched in 2016, marked Apple’s entry into the wireless earbuds market and set a new standard for the industry.