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Magnuson Moss Warranty Act

Magnuson Moss Warranty Act US Code - Title 15, Chapter 50, Sections 2301-2312



(1) The term "consumer product" means any tangible personal  property which is distributed in commerce and which is normally used for  personal, family, or household purposes (including any such property  intended to be attached to or installed in any real property without  regard to whether it is so attached or installed).

(2) The term "Commission" means the Federal Trade Commission.

(3) The term "consumer" means a buyer (other than for purposes of  resale) of any consumer product, any person to whom such product is  transferred during the duration of an implied or written warranty (or  service contract) applicable to the product, and any other person who is  entitled by the terms of such warranty (or service contract) or under  applicable State law to enforce against the warrantor (or service  contractor) the obligations of the warranty (or service contract).

(4) The term "supplier" means any person engaged in the business of  making a consumer product directly or indirectly available to  consumers.

(5) The term "warrantor" means any supplier or other person who  gives or offers to give a written warranty or who is or may be obligated  under an implied warranty.

(6) The term "written warranty" means -

(A) any written affirmation of fact or written promise made in  connection with the sale of a consumer product by a supplier to a buyer  which relates to the nature of the material or workmanship and affirms  or promises that such material or workmanship is defect free or will  meet a specified level of performance over a specified period of time,  or

(B) any undertaking in writing in connection with the sale by a  supplier of a consumer product to refund, repair, replace, or take other  remedial action with respect to such product in the event that such  product fails to meet the specifications set forth in the undertaking,  which written affirmation, promise, or undertaking becomes part of the  basis of the bargain between a supplier and a buyer for purposes other  than resale of such product.

(7) The term "implied warranty" means an implied warranty arising  under State law (as modified by sections 2308 and 2304(a) of this title)  in connection with the sale by a supplier of a consumer product.

(8) The term "service contract" means a contract in writing to  perform, over a fixed period of time or for a specified duration,  services relating to the maintenance or repair (or both) of a consumer  product.

(9) The term "reasonable and necessary maintenance" consists of those operations

(A) which the consumer reasonably can be expected to perform or have performed and

(B) which are necessary to keep any consumer product performing its  intended function and operating at a reasonable level of performance.

(10) The term "remedy" means whichever of the following actions the warrantor elects:

(A) repair,

(B) replacement, or

(C) refund;

except that the warrantor may not elect refund unless (i) the  warrantor is unable to provide replacement and repair is not  commercially practicable or cannot be timely made, or (ii) the consumer  is willing to accept such refund.

(11) The term ''replacement'' means furnishing a new consumer  product which is identical or reasonably equivalent to the warranted  consumer product.

(12) The term "refund" means refunding the actual purchase price  (less reasonable depreciation based on actual use where permitted by  rules of the Commission).

(13) The term "distributed in commerce" means sold in commerce,  introduced or delivered for introduction into commerce, or held for sale  or distribution after introduction into commerce.

(14) The term "commerce" means trade, traffic, commerce, or transportation -

(A) between a place in a State and any place outside thereof,


(B) which affects trade, traffic, commerce, or transportation described in subparagraph (A).

(15) The term "State" means a State, the District of Columbia, the  Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Canal Zone,  or American Samoa. The term "State law" includes a law of the United  States applicable only to the District of Columbia or only to a  territory or possession of the United States; and the term "Federal  law'" excludes any State law.


(a) Full and conspicuous disclosure of terms and conditions;  additional requirements for contents In order to improve the adequacy of  information available to consumers, prevent deception, and improve  competition in the marketing of consumer products, any warrantor  warranting a consumer product to a consumer by means of a written  warranty shall, to the extent required by rules of the Commission, fully  and conspicuously disclose in simple and readily understood language  the terms and conditions of such warranty. Such rules may require  inclusion in the written warranty of any of the following items among  others:

(1) The clear identification of the names and addresses of the warrantors.

(2) The identity of the party or parties to whom the warranty is extended.

(3) The products or parts covered.

(4) A statement of what the warrantor will do in the event of a  defect, malfunction, or failure to conform with such written warranty -  at whose expense - and for what period of time.

(5) A statement of what the consumer must do and expenses he must bear.

(6) Exceptions and exclusions from the terms of the warranty.

(7) The step-by-step procedure which the consumer should take in  order to obtain performance of any obligation under the warranty,  including the identification of any person or class of persons  authorized to perform the obligations set forth in the warranty.

(8) Information respecting the availability of any informal dispute  settlement procedure offered by the warrantor and a recital, where the  warranty so provides, that the purchaser may be required to resort to  such procedure before pursuing any legal remedies in the courts.

(9) A brief, general description of the legal remedies available to the consumer.

(10) The time at which the warrantor will perform any obligations under the warranty.

(11) The period of time within which, after notice of a defect,  malfunction, or failure to conform with the warranty, the warrantor will  perform any obligations under the warranty.

(12) The characteristics or properties of the products, or parts thereof, that are not covered by the warranty.

(13) The elements of the warranty in words or phrases which would  not mislead a reasonable, average consumer as to the nature or scope of  the warranty.

(b) Availability of terms to consumer; manner and form for  presentation and display of information; duration; extension of period  for written warranty or service contract


(A) The Commission shall prescribe rules requiring that the terms  of any written warranty on a consumer product be made available to the  consumer (or prospective consumer) prior to the sale of the product to  him.

(B) The Commission may prescribe rules for determining the manner  and form in which information with respect to any written warranty of a  consumer product shall be clearly and conspicuously presented or  displayed so as not to mislead the reasonable, average consumer, when  such information is contained in advertising, labeling, point-of-sale  material, or other representations in writing.

(2) Nothing in this chapter (other than paragraph (3) of this  subsection) shall be deemed to authorize the Commission to prescribe the  duration of written warranties given or to require that a consumer  product or any of its components be warranted.

(3) The Commission may prescribe rules for extending the period of  time a written warranty or service contract is in effect to correspond  with any period of time in excess of a reasonable period (not less than  10 days) during which the consumer is deprived of the use of such  consumer product by reason of failure of the product to conform with the  written warranty or by reason of the failure of the warrantor (or  service contractor) to carry out such warranty (or service contract)  within the period specified in the warranty (or service contract).

(c) Prohibition on conditions for written or implied warranty;  waiver by Commission No warrantor of a consumer product may condition  his written or implied warranty of such product on the consumer's using,  in connection with such product, any article or service (other than  article or service provided without charge under the terms of the  warranty) which is identified by brand, trade, or corporate name; except  that the prohibition of this subsection may be waived by the Commission  if -

(1) the warrantor satisfies the Commission that the warranted  product will function properly only if the article or service so  identified is used in connection with the warranted product, and

(2) the Commission finds that such a waiver is in the public  interest. The Commission shall identify in the Federal Register, and  permit public comment on, all applications for waiver of the prohibition  of this subsection, and shall publish in the Federal Register its  disposition of any such application, including the reasons therefor.

(d) Incorporation by reference of detailed substantive warranty provisions

The Commission may by rule devise detailed substantive warranty  provisions which warrantors may incorporate by reference in their  warranties.

(e) Applicability to consumer products costing more than $5

The provisions of this section apply only to warranties which  pertain to consumer products actually costing the consumer more than $5.


(a) Full (statement of duration) or limited warranty

Any warrantor warranting a consumer product by means of a written  warranty shall clearly and conspicuously designate such warranty in the  following manner, unless exempted from doing so by the Commission  pursuant to subsection (c) of this section:

(1) If the written warranty meets the Federal minimum standards for  warranty set forth in section 2304 of this title, then it shall be  conspicuously designated a ''full (statement of duration) warranty''.

(2) If the written warranty does not meet the Federal minimum  standards for warranty set forth in section 2304 of this title, then it  shall be conspicuously designated a "limited warranty".

(b) Applicability of requirements, standards, etc., to representations or statements of customer satisfaction

This section and sections 2302 and 2304 of this title shall not  apply to statements or representations which are similar to expressions  of general policy concerning customer satisfaction and which are not  subject to any specific limitations.

(c) Exemptions by Commission

In addition to exercising the authority pertaining to disclosure  granted in section 2302 of this title, the Commission may by rule  determine when a written warranty does not have to be designated either  ''full (statement of duration)'' or ''limited'' in accordance with this  section.

(d) Applicability to consumer products costing more than $10 and not designated as full warranties

The provisions of subsections (a) and (c) of this section apply  only to warranties which pertain to consumer products actually costing  the consumer more than $10 and which are not designated "full (statement  of duration) warranties".


(a) Remedies under written warranty; duration of implied warranty;  exclusion or limitation on consequential damages for breach of written  or implied warranty; election of refund or replacement. In order for a  warrantor warranting a consumer product by means of a written warranty  to meet the Federal minimum standards for warranty -

(1) such warrantor must as a minimum remedy such consumer product  within a reasonable time and without charge, in the case of a defect,  malfunction, or failure to conform with such written warranty;

(2) notwithstanding section 2308(b) of this title, such warrantor  may not impose any limitation on the duration of any implied warranty on  the product;

(3) such warrantor may not exclude or limit consequential damages  for breach of any written or implied warranty on such product, unless  such exclusion or limitation conspicuously appears on the face of the  warranty; and

(4) if the product (or a component part thereof) contains a defect  or malfunction after a reasonable number of attempts by the warrantor to  remedy defects or malfunctions in such product, such warrantor must  permit the consumer to elect either a refund for, or replacement without  charge of, such product or part (as the case may be). The Commission  may by rule specify for purposes of this paragraph, what constitutes a  reasonable number of attempts to remedy particular kinds of defects or  malfunctions under different circumstances. If the warrantor replaces a  component part of a consumer product, such replacement shall include  installing the part in the product without charge.

(b) Duties and conditions imposed on consumer by warrantor

(1) In fulfilling the duties under subsection (a) of this section  respecting a written warranty, the warrantor shall not impose any duty  other than notification upon any consumer as a condition of securing  remedy of any consumer product which malfunctions, is defective, or does  not conform to the written warranty, unless the warrantor has  demonstrated in a rulemaking proceeding, or can demonstrate in an  administrative or judicial enforcement proceeding (including private  enforcement), or in an informal dispute settlement proceeding, that such  a duty is reasonable.

(2) Notwithstanding paragraph (1), a warrantor may require, as a  condition to replacement of, or refund for, any consumer product under  subsection (a) of this section, that such consumer product shall be made  available to the warrantor free and clear of liens and other  encumbrances, except as otherwise provided by rule or order of the  Commission in cases in which such a requirement would not be  practicable.

(3) The Commission may, by rule define in detail the duties set  forth in subsection (a) of this section and the applicability of such  duties to warrantors of different categories of consumer products with  ''full (statement of duration)'' warranties.

(4) The duties under subsection (a) of this section extend from the  warrantor to each person who is a consumer with respect to the consumer  product.

(c) Waiver of standards

The performance of the duties under subsection (a) of this section  shall not be required of the warrantor if he can show that the defect,  malfunction, or failure of any warranted consumer product to conform  with a written warranty, was caused by damage (not resulting from defect  or malfunction) while in the possession of the consumer, or  unreasonable use (including failure to provide reasonable and necessary  maintenance).

(d) Remedy without charge

For purposes of this section and of section 2302(c) of this title,  the term ''without charge'' means that the warrantor may not assess the  consumer for any costs the warrantor or his representatives incur in  connection with the required remedy of a warranted consumer product. An  obligation under subsection (a)(1)(A) of this section to remedy without  charge does not necessarily require the warrantor to compensate the  consumer for incidental expenses; however, if any incidental expenses  are incurred because the remedy is not made within a reasonable time or  because the warrantor imposed an unreasonable duty upon the consumer as a  condition of securing remedy, then the consumer shall be entitled to  recover reasonable incidental expenses which are so incurred in any  action against the warrantor.

(e) Incorporation of standards to products designated with full warranty for purposes of judicial actions

If a supplier designates a warranty applicable to a consumer  product as a ''full (statement of duration)'' warranty, then the  warranty on such product shall, for purposes of any action under section  2310(d) of this title or under any State law, be deemed to incorporate  at least the minimum requirements of this section and rules prescribed  under this section.


Nothing in this chapter shall prohibit the selling of a consumer  product which has both full and limited warranties if such warranties  are clearly and conspicuously differentiated.


(a) The Commission may prescribe by rule the manner and form in  which the terms and conditions of service contracts shall be fully,  clearly, and conspicuously disclosed.

(b) Nothing in this chapter shall be construed to prevent a  supplier or warrantor from entering into a service contract with the  consumer in addition to or in lieu of a written warranty if such  contract fully, clearly, and conspicuously discloses its terms and  conditions in simple and readily understood language.


Nothing in this chapter shall be construed to prevent any warrantor  from designating representatives to perform duties under the written or  implied warranty: Provided, That such warrantor shall make reasonable  arrangements for compensation of such designated representatives, but no  such designation shall relieve the warrantor of his direct  responsibilities to the consumer or make the representative a  co-warrantor.


(a) Restrictions on disclaimers or modifications

No supplier may disclaim or modify (except as provided in  subsection (b) of this section) any implied warranty to a consumer with  respect to such consumer product if

(1) such supplier makes any written warranty to the consumer with respect to such consumer Product, or

(2) at the time of sale, or within 90 days thereafter, such  supplier enters into a service contract with the consumer which applies  to such consumer product.

(b) Limitation on duration

For purposes of this chapter (other than section 2304(a)(2) of this  title), implied warranties may be limited in duration to the duration  of a written warranty of reasonable duration, if such limitation is  conscionable and is set forth in clear and unmistakable language and  prominently displayed on the face of the warranty.

(c) Effectiveness of disclaimers, modifications, or limitations

A disclaimer, modification, or limitation made in violation of this  section shall be ineffective for purposes of this chapter and State  law.


(a) Oral presentation

Any rule prescribed under this chapter shall be prescribed in  accordance with section 553 of title 5; except that the Commission shall  give interested persons an opportunity for oral presentations of data,  views, and arguments, in addition to written submissions. A transcript  shall be kept of any oral presentation. Any such rule shall be subject  to judicial review under section 57a(e) of this title in the same manner  as rules prescribed under section 57a(a)(1)(B) of this title, except  that section 57a(e)(3)(B) of this title shall not apply.

(b) Warranties and warranty practices involved in sale of used motor vehicles

The Commission shall initiate within one year after January 4,  1975, a rulemaking proceeding dealing with warranties and warranty  practices in connection with the sale of used motor vehicles; and, to  the extent necessary to supplement the protections offered the consumer  by this chapter, shall prescribe rules dealing with such warranties and  practices. In prescribing rules under this subsection, the Commission  may exercise any authority it may have under this chapter, or other law,  and in addition it may require disclosure that a used motor vehicle is  sold without any warranty and specify the form and content of such  disclosure.


(a) Informal dispute settlement procedures; establishment; rules  setting forth minimum requirements; effect of compliance by warrantor;  review of informal procedures or implementation by Commission;  application to existing informal procedures

(1) Congress hereby declares it to be its policy to encourage  warrantors to establish procedures whereby consumer disputes are fairly  and expeditiously settled through informal dispute settlement  mechanisms.

(2) The Commission shall prescribe rules setting forth minimum  requirements for any informal dispute settlement procedure which is  incorporated into the terms of a written warranty to which any provision  of this chapter applies. Such rules shall provide for participation in  such procedure by independent or governmental entities.

(3) One or more warrantors may establish an informal dispute  settlement procedure which meets the requirements of the Commission's  rules under paragraph (2). If -

(A) a warrantor establishes such a procedure,

(B) such procedure, and its implementation, meets the requirements of such rules, and

(C) he incorporates in a written warranty a requirement that the  consumer resort to such procedure before pursuing any legal remedy under  this section respecting such warranty, then

(i) the consumer may not commence a civil action (other than a  class action) under subsection (d) of this section unless he initially  resorts to such procedure; and

(ii) a class of consumers may not proceed in a class action under  subsection (d) of this section except to the extent the court determines  necessary to establish the representative capacity of the named  plaintiffs, unless the named plaintiffs (upon notifying the defendant  that they are named plaintiffs in a class action with respect to a  warranty obligation) initially resort to such procedure. In the case of  such a class action which is brought in a district court of the United  States, the representative capacity of the named plaintiffs shall be  established in the application of rule 23 of the Federal Rules of Civil  Procedure. In any civil action arising out of a warranty obligation and  relating to a matter considered in such a procedure, any decision in  such procedure shall be admissible in evidence.

(4) The Commission on its own initiative may, or upon written  complaint filed by any interested person shall, review the bona fide  operation of any dispute settlement procedure resort to which is stated  in a written warranty to be a prerequisite to pursuing a legal remedy  under this section.

If the Commission finds that such procedure or its implementation  fails to comply with the requirements of the rules under paragraph (2),  the Commission may take appropriate remedial action under any authority  it may have under this chapter or any other provision of law.

(5) Until rules under paragraph (2) take effect, this subsection  shall not affect the validity of any informal dispute settlement  procedure respecting consumer warranties, but in any action under  subsection (d) of this section, the court may invalidate any such  procedure if it finds that such procedure is unfair.

(b) Prohibited acts It shall be a violation of section 45(a)(1) of  this title for any person to fail to comply with any requirement imposed  on such person by this chapter (or a rule thereunder) or to violate any  prohibition contained in this chapter (or a rule thereunder).

(c) Injunction proceedings by Attorney General or Commission for  deceptive warranty, noncompliance with requirements, or violating  prohibitions; procedures; definitions

(1) The district courts of the United States shall have  jurisdiction of any action brought by the Attorney General (in his  capacity as such), or by the Commission by any of its attorneys  designated by it for such purpose, to restrain

(A) any warrantor from making a deceptive warranty with respect to a consumer product, or

(B) any person from failing to comply with any requirement imposed  on such person by or pursuant to this chapter or from violating any  prohibition contained in this chapter. Upon proper showing that,  weighing the equities and considering the Commission's or Attorney  General's likelihood of ultimate success, such action would be in the  public interest and after notice to the defendant, a temporary  restraining order or preliminary injunction may be granted without bond.  In the case of an action brought by the Commission, if a complaint  under section 45 of this title is not filed within such period (not  exceeding 10 days) as may be specified by the court after the issuance  of the temporary restraining order or preliminary injunction, the order  or injunction shall be dissolved by the court and be of no further force  and effect. Any suit shall be brought in the district in which such  person resides or transacts business. Whenever it appears to the court  that the ends of justice require that other persons should be parties in  the action, the court may cause them to be summoned whether or not they  reside in the district in which the court is held, and to that end  process may be served in any district.

(2) For the purposes of this subsection, the term ''deceptive warranty'' means

(A) a written warranty which (i) contains an affirmation, promise,  description, or representation which is either false or fraudulent, or  which, in light of all of the circumstances, would mislead a reasonable  individual exercising due care; or (ii) fails to contain information  which is necessary in light of all of the circumstances, to make the  warranty not misleading to a reasonable individual exercising due care;  or

(B) a written warranty created by the use of such terms as  ''guaranty'' or ''warranty'', if the terms and conditions of such  warranty so limit its scope and application as to deceive a reasonable  individual.

(d) Civil action by consumer for damages, etc.; jurisdiction; recovery of costs and expenses; cognizable claims

(1) Subject to subsections (a)(3) and (e) of this section, a  consumer who is damaged by the failure of a supplier, warrantor, or  service contractor to comply with any obligation under this chapter, or  under a written warranty, implied warranty, or service contract, may  bring suit for damages and other legal and equitable relief -

(A) in any court of competent jurisdiction in any State or the District of Columbia; or

(B) in an appropriate district court of the United States, subject to paragraph (3) of this subsection.

(2) If a consumer finally prevails in any action brought under  paragraph (1) of this subsection, he may be allowed by the court to  recover as part of the judgment a sum equal to the aggregate amount of  cost and expenses (including attorneys' fees based on actual time  expended) determined by the court to have been reasonably incurred by  the plaintiff for or in connection with the commencement and prosecution  of such action, unless the court in its discretion shall determine that  such an award of attorneys' fees would be inappropriate.

(3) No claim shall be cognizable in a suit brought under paragraph (1)(B) of this subsection -

(A) if the amount in controversy of any individual claim is less than the sum or value of $25;

(B) if the amount in controversy is less than the sum or value of  $50,000 (exclusive of interests and costs) computed on the basis of all  claims to be determined in this suit; or

(C) if the action is brought as a class action, and the number of named plaintiffs is less than one hundred.

(e) Class actions; conditions; procedures applicable

No action (other than a class action or an action respecting a  warranty to which subsection (a)(3) of this section applies) may be  brought under subsection (d) of this section for failure to comply with  any obligation under any written or implied warranty or service  contract, and a class of consumers may not proceed in a class action  under such subsection with respect to such a failure except to the  extent the court determines necessary to establish the representative  capacity of the named plaintiffs, unless the person obligated under the  warranty or service contract is afforded a reasonable opportunity to  cure such failure to comply. In the case of such a class action (other  than a class action respecting a warranty to which subsection (a)(3) of  this section applies) brought under subsection (d) of this section for  breach of any written or implied warranty or service contract, such  reasonable opportunity will be afforded by the named plaintiffs and they  shall at that time notify the defendant that they are acting on behalf  of the class. In the case of such a class action which is brought in a  district court of the United States, the representative capacity of the  named plaintiffs shall be established in the application of rule 23 of  the Federal Rules of Civil Procedure.

(f) Warrantors subject to enforcement of remedies

For purposes of this section, only the warrantor actually making a  written affirmation of fact, promise, or undertaking shall be deemed to  have created a written warranty, and any rights arising thereunder may  be enforced under this section only against such warrantor and no other  person.


(a) Federal Trade Commission Act and Federal Seed Act

(1) Nothing contained in this chapter shall be construed to repeal,  invalidate, or supersede the Federal Trade Commission Act (15 U.S.C. 41  et seq.) or any statute defined therein as an Antitrust Act.

(2) Nothing in this chapter shall be construed to repeal,  invalidate, or supersede the Federal Seed Act (7 U.S.C. 1551 et seq.)  and nothing in this chapter shall apply to seed for planting.

(b) Rights, remedies, and liabilities

(1) Nothing in this chapter shall invalidate or restrict any right  or remedy of any consumer under State law or any other Federal law.

(2) Nothing in this chapter (other than sections 2308 and  2304(a)(2) and (4) of this title) shall (A) affect the liability of, or  impose liability on, any person for personal injury, or (B) supersede  any provision of State law regarding consequential damages for injury to  the person or other injury.

(c) State warranty laws

(1) Except as provided in subsection (b) of this section and in paragraph (2) of this subsection, a State requirement -

(A) which relates to labeling or disclosure with respect to written warranties or performance thereunder;

(B) which is within the scope of an applicable requirement of  sections 2302, 2303, and 2304 of this title (and rules implementing such  sections), and

(C) which is not identical to a requirement of section 2302, 2303,  or 2304 of this title (or a rule thereunder), shall not be applicable to  written warranties complying with such sections (or rules thereunder).

(2) If, upon application of an appropriate State agency, the  Commission determines (pursuant to rules issued in accordance with  section 2309 of this title) that any requirement of such State covering  any transaction to which this chapter applies

(A) affords protection to consumers greater than the requirements of this chapter and

(B) does not unduly burden interstate commerce, then such State  requirement shall be applicable (notwithstanding the provisions of  paragraph (1) of this subsection) to the extent specified in such  determination for so long as the State administers and enforces  effectively any such greater requirement.

(d) Other Federal warranty laws This chapter (other than section  2302(c) of this title) shall be inapplicable to any written warranty the  making or content of which is otherwise governed by Federal law. If  only a portion of a written warranty is so governed by Federal law, the  remaining portion shall be subject to this chapter.


(a) Effective date of chapter

Except as provided in subsection (b) of this section, this chapter  shall take effect 6 months after January 4, 1975, but shall not apply to  consumer products manufactured prior to such date.

(b) Effective date of section 2302(a)

Section 2302(a) of this title shall take effect 6 months after the  final publication of rules respecting such section; except that the  Commission, for good cause shown, may postpone the applicability of such  sections until one year after such final publication in order to permit  any designated classes of suppliers to bring their written warranties  into compliance with rules promulgated pursuant to this chapter.

(c) Promulgation of rules

The Commission shall promulgate rules for initial implementation of  this chapter as soon as possible after January 4, 1975, but in no event  later than one year after such date.

Federal Trade Commission Link:  https://www.ftc.gov/enforcement/statutes/magnuson-moss-warranty-federal-trade-commission-improvements-act  more details on - https://www.carid.com/magnuson-moss-warranty-act.html