A “warranty” is a promise that a manufacturer or seller makes in which it guarantees a product. With a warranty, the "warrantor" (the person or company that makes the warranty) pledges to correct issues if the product fails due to a manufacturing defect or because the product doesn’t function as promised.
To protect consumers from defective products, Congress passed the Magnuson-Moss Warranty Act in 1975. This federal law governs written warranties on consumer products.
The Act requires manufacturers and sellers of personal, family, or household goods to give consumers detailed information about warranty coverage and ensures that consumers get complete information about the warranty on an item before buying it.
Magnuson-Moss Warranty Requirements
The Magnuson-Moss Warranty Act creates some basic requirements for manufacturers and sellers who offer written warranties on their products. The three main requirements are:
1. The Warrantor Must Designate the Warranty as Full or Limited
The warrantor has to designate the warranty as a full warranty or limited warranty. A “full” warranty means that the manufacturer or seller promises to repair or replace the item if it has a defect, whereas a “limited” warranty restricts the warrantor’s obligation regarding repairing or replacing the product.
For example, if you buy a clock with a limited manufacturer’s warranty, the warrantor (the manufacturer) might have to replace or repair only certain parts if the clock breaks. If the broken part isn’t covered by the limited warranty, you’re out of luck.
2. The Warrantor Must Explain the Warranty in Plain English
The warrantor has to provide the warranty, including the terms and conditions, in plain English. Under the Magnuson-Moss Warranty Act, the warrantor must provide details about what the warranty covers in a basic, easily understood document containing information like:
- the name and address of the company making the warranty (the warrantor)
- the product or part that the warranty covers
- how long the warranty lasts
- what the consumer should do if there is a problem with the product
- what the warrantor will do if the product is or becomes defective—replace it, repair it, or give the consumer a refund
- whether the consumer must pay any expenses, like shipping, to take advantage of the warranty, and
- a brief, general description of the consumer's legal rights.
3. The Warrantor Must Make the Warranty Available to Consumers
The warrantor has to ensure that consumers are permitted to read the written warranty before buying an item. This way, consumers are able to compare different warranties before buying a product.
Under the law, warranty information must be located and available to consumers in the same place where the warrantor sells the product, like in the store near the item. The warrantor must make the warranty available to consumers even if a consumer is shopping through a mail-order catalog or online rather than in a store.
The titling requirement applies to written warranties on consumer products costing more than $10, while the disclosure and availability requirements apply to all written warranties on consumer products costing more than $15.
State Laws Sometimes Have More Requirements
Often, state law provides consumers with additional warranty protections, like protections covering implied warranties. Also, some states have laws that give more warranty protections regarding particular types of products, like new cars, boats, recreational vehicles, and mobile homes.
Talk to a Consumer Protection Lawyer
Laws about consumer product warranties are complicated. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, contact a consumer protection lawyer.
Continue on to our Warranty FAQ.