AMRA, USAP Coalition Respond to FTC on Warranty Act

The Automotive Maintenance and Repair Association (AMRA) announced its support of the Uniform Standards in Automotive Products (USAP) Coalition’s response to the Federal Trade Commission regarding its request for public comment concerning potential changes in the interpretations of the Magnuson-Moss Warranty Act.

AMRA, a member of the USAP Coalition, said it supports comments submitted by the coalition and joins it in urging the FTC to make two simple clarifications to its interpretations. These clarifications would better provide consumers with the protections discussed in the Consumer Alert and bring the Magnuson-Moss Warranty Act in line with the federal law that served as the source of the Act’s anti-tying provision, according to the groups.

AMRA and the coalition urge the FTC to revise Section 700.10(c) of its interpretations under the act in order to clarify that warrantors may not directly or indirectly condition a product’s warranty coverage on the use of branded parts or services, unless that article or service is provided without charge under the terms of the warranty.

While the use of “direct” tying provisions in warranties is clearly prohibited by the Act, AMRA said it believes the FTC needs to make clear that warranty language that creates the impression that the use of a branded product or service is required in order to maintain warranty coverage is equally impermissible. AMRA said the FTC should clarify its interpretations to more expressly indicate that indirect tying arrangements are also prohibited by the act.

Second, AMRA and the coalition urge the commission to implement measures under Section 700.10 of the interpretations designed to provide consumers with timely knowledge of their rights under the act. “A simple and nonburdensome disclosure statement, drawn from the FTC’s recent Consumer Alert on Auto Warranties and provided to consumers in automotive warranty documents, would ensure consumers are aware of their rights under the act without imposing a burden on warrantors or service providers,” AMRA stated.

The USAP Coalition, formed to address the practice of warrantors directly or
indirectly conditioning a product’s warranty coverage on the use of branded parts or services, is composed of the following members of the aftermarket parts industry: AMRA, the Automotive Aftermarket Industry Association, the Automotive Oil Change Association, Ashland Inc., Express Oil Change, LLC, the Independent Lubricant Manufacturers Association, and others.

The Goodyear Tire & Rubber Company has named Ryan Waldron as president of the company's Americas business unit, reporting to Chief Executive Officer and President Mark Stewart. He succeeds Steven R. McClellan, who retired on April 1.

"At Goodyear, our customers are at the center of everything we do, and in Ryan Waldron, we have a customer-centric, execution-focused business leader with a deep understanding of both the marketplace and all aspects of our business, as well as a proven track record of delivering results," Stewart said. "I am thrilled to announce him as president of Goodyear's Americas business and have enormous confidence that under his leadership, both the company and our customers will reach even greater levels of success."