Newscast

FTC warns several Tech companies about warranty violations

By Nik

July 04, 2024

The U.S. Federal Trade Commission (FTC) announced on Wednesday that it has warned several tech companies about their warranty and repair policies that may be violating federal law. Specifically, the FTC sent letters to ASRock, Gigabyte, and Zotac, suggesting they might be breaching the Magnuson-Moss Warranty Act, which governs consumer warranties. These companies have 30 days to review and update their policies.

The FTC highlighted that these companies cannot use stickers that warn customers against opening or repairing their laptops, nor can they imply that repairs must be done by authorized service centers only. For instance, in its letter to Gigabyte, the FTC expressed concern over a warranty statement that voids the warranty if the product’s manufacturing sticker is removed or damaged.

ASRock’s warranty policy was also scrutinized. The FTC’s letter pointed out that ASRock’s warranty would be void if the product was modified, damaged, or tampered with, such as opening the case or installing/removing parts.

The FTC warned that denying warranty coverage based on these policies could lead to legal action. It’s worth mentioning that Asus, who where previously criticized for its warranty practices, was not mentioned this time.