FTC issues new Opinion Letter that helps warrantors using electronic documentation

The Federal Trade Commission in a February 17, 2009 opinion letter provides additional grounding for use of electronic copies of manufacturer's warranties in certain circumstances in lieu of paper copies for disclosure purposes.  This is an important opinion it that it has the potential to save vendors the significant costs associated with providing the many printed versions of warranties stipulated by the Maguson-Moss warranty act.

Here is the conclusion of the opinion letter that summarizes the how and where electronic copies may be used:

"Based on the broad language used in the Pre-Sale Availability Rule, FTC staff’s opinion is that an electronic version of a consumer product warranty would constitute a “copy” of the written warranty for purposes of compliance with the Warranty Act and Rules.

Moreover, it is staff’s opinion that a written consumer product warranty that is included on a CD, DVD, or on the internal drive of the warranted product would qualify as being “provided with” or as “accompanying” the product. In passing the Act, Congress’s intent was to ensure that consumers receive clear and complete information about warranty coverage pre-sale, and that consumers be able to retain a copy of the warranty post-sale for reference in case of product failure.

In the opinion of FTC staff, those purposes are sufficiently accomplished by providing, in electronic form, a copy of a written consumer product warranty that otherwise complies with the requirements and prohibitions of the Warranty Act and Rules – provided the warranted consumer products include clear, conspicuous, and easy-to-follow instructions on how to access the warranty information provided on the consumer product’s internal drive or on an accompanying CD or DVD and that a consumer can print out a paper copy of the warranty if needed.

Further, consumers who receive your client’s warranties electronically may end up dependent on the copy of the warranty available on your client’s website if product failure occurs, because they may not be able to access the internal drive or portable media. Therefore, if your client changes its warranty, it should keep on its website a posting of printable earlier warranties and the dates they were in effect."

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