FTC Settles with Mini Cooper for Violations of Federal Warranty Law

The Federal Trade Commission (FTC) works tirelessly to prevent fraudulent, deceptive, and unfair business practices, providing crucial information to help consumers spot, stop, and avoid them.

Deciphering the BMW Settlement

On March 19, the FTC announced a settlement with BMW of North America LLC and its MINI Division for alleged violations of the Magnuson-Moss Warranty Act. The FTC alleged that MINI required all non-warranty repair and maintenance work to be completed at MINI dealerships using MINI parts to maintain the new car warranty.

“It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Because of this order, BMW will change its practices and give MINI owners information about their rights.”

The Legal Landscape: Magnuson-Moss Warranty Act Explained

Federal warranty law prohibits tying provisions, which prevent warranties from requiring a specific facility or a specific brand name part for non-warranty repairs, except in extremely limited circumstances. This law not only applies to car manufacturers but to any business offering its own warranty. If your business offers a product warranty separate from the manufacturer, it is subject to the Magnuson-Moss Warranty Act.

Conclusion

The BMW settlement serves as a reminder of the importance of understanding and complying with federal warranty laws. The Magnuson-Moss Warranty Act protects consumers from restrictive warranty practices and ensures their rights are upheld. For businesses, staying informed and compliant is crucial. Reach out to ALH Law Group for expert legal guidance to navigate these complex issues. Like any other business, car dealerships must adhere to legal standards. An auto dealer lawyer regularly sees cases similar to the BMW settlement, though often on a smaller scale.

If you have questions about warranty law or want your warranty reviewed for compliance, don't wait until it is too late. Please contact the professionals at ALH Law Group by phone at (614) 440-1395 to schedule a consultation with an experienced lawyer in Columbus today.