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Microsoft, Sony, and Asus Have 30 Days To Change Illegal Warranty Terms

The Federal Trade Commisssion (FTC) sent out warnings to six companies saying they have thirty days to update their policies involving warranty terms found to be illegal. These companies include Nintendo, Sony, Microsoft, Asus, Hyundai, and HTC. These changes center around the “warranty void if removed” stickers.

Motherboard were able to obtain the letter and it states:

“This letter places you on notice that violations of the Warranty and FTC Acts may result in legal action,” the letters state in bold. “FTC investigators have copied and preserved the online pages in question, and we plan to review your company’s written warranty and promotional materials after 30 days. You should review the Warranty and FTC Acts and if necessary, revise your practices to comply with the Acts’ requirements. By sending this letter, we do not waive the FTC’s right to take law enforcement action and seek appropriate injunctive and monetary remedies against [company name] based on past or future violations.”

It even specially mentions the Xbox One and says “Microsoft is not responsible and this warranty does not apply if your Xbox One or Accessory is…repaired by anyone other than Microsoft.”

The FTC found that these companies violated the 1975 Magnuson-Moss Warranty Act, which states that no manufacturer charging more than $5 for a product may put repair restrictions on a device its offering a warranty on. If these companies do not resolve these warranty terms, they will be faced with legal action.

 

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