Marketing Add-on Warranty Products Draw FTC Scrutiny
Partner Chad Fuller and associates Virginia Bell Flynn and Brooke Conkle are published in Auto Finance Excellence for their article, “Marketing Add-on Warranty Products Draw FTC Scrutiny.” The trio write, “In April, the Federal Trade Commission (FTC) sent warning letters to six major companies – including ASUS, HTC, Hyundai, Microsoft, Nintendo, and Sony – that market and sell motor vehicles, cellular devices, and video game systems. According to the FTC, the six companies have potentially violated the FTC Act and the Magnuson-Moss Warranty Act (Warranty Act) through use of specific language on their websites.” They go on to share ways in which companies can protect themselves from FTC scrutiny, writing, “First, ensure that consumers are informed about all terms of any deal. … Second, acknowledge that you cannot condition consumer warranties. … Finally, turn compliance challenges into an opportunity to show your company’s worth.”