Aftermarket Insider Issue 74 - (Page 25)

Warrant y Watchdog GoVERNMENT AFFAiRS Magnuson-Moss: Is the FTC Doing Their Job? B Y AA R O N L O We , A A I A vI Ce P Re S I D e N T, G Ov e R N Me NT AF FAIRS superior quality and service is the hallmark of business competition in the U.S. However, recently it seems that when it comes to vehicle manufacturers, the best route to growing sales may be to disparage the competition. Two unsubstantiated statements made by two prominent vehicle manufacturers point to the need by the Federal Trade Commission (FTC) to aggressively enforce its rules governing unfair marketing practices and warranties on repair or replacement parts in consumer products, such as vehicles, as specified in the Magnuson-Moss Warranty Act. In 2010, Honda issued a release stating: “Other parts — whether aftermarket, counterfeit or gray market — are not recommended. The quality, performance, and safety of these parts and whether they are compatible with a particular Honda vehicle are unknown. American Honda will not be responsible for any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than Honda Genuine Parts purchased from an authorized U.S. Honda dealer.” In 2011, Mazda issued a release which alleged that, “Aftermarket parts are generally made to a lower standard in order to cut costs and lack the testing required to determine their effectiveness in vehicle performance and safety. Mazda also recommends that car owners use original equipment replacement parts in repairs in order to ensure the validity of their warranty.” The release goes on to Winning customers by providing emphasize that “only Genuine Mazda Parts purchased from an authorized Mazda dealer are specifically covered by the Mazda warranty. The original warranty could become invalid if aftermarket parts contribute to the damage of original parts.” AAIA and other aftermarket groups have filed complaints regarding both releases with the FTC, taking issue with the unsubstantiated claims made by the car companies about the quality of aftermarket parts. AAIA contends that the releases violate the MagnusonMoss Warranty Act since they clearly lead consumers to believe that they must use dealer service and original equipment in order to ensure the integrity of their new car warranties. While the FTC so far has failed to take formal action against either manufacturer, last year they issued an FTC “Consumer Alert” informing consumers of their right to have their vehicle serviced or maintained at a repair shop of their choice or perform the service themselves without concern that their warranty would be voided by their vehicle manufacturer. That alert can be viewed at the FTC website at: http://ftc.gov/bcp/edu/ pubs/consumer/alerts/alt192.shtm Further, the FTC late last year issued a Federal Register Notice seeking public comment on the agency’s interpretations and enforcement of the Magnuson-Moss Warranty Act. AAIA, with a coalition of companies and trade groups, called on the commission to require better consumer disclosure by car companies regarding their rights under warranty. Specifically, the coalition called on the FTC to require that a warranty booklet and other disclosures include a prominently placed statement that they are prohibited from conditioning the warranty on the use of any non-OE part or service. AAIA urged the FTC to require that consumers receive a written statement of reasons when a warranty is denied due to the use of a non-OE service or part and that vehicle manufacturers be required to substantiate all claims that use of non-OE parts could jeopardize a vehicle warranty. While AAIA appreciates the actions that the FTC has taken to address this, the FTC must conduct greater oversight and enforcement on vehicle manufacturers who do not comply with the act and discredit aftermarket products. AAIA will remain vigilant in protecting the rights of our industry and will take our message, to Congress during the upcoming 2012 Aftermarket Legislative Summit on March 14 and 15. AFTERMARKET INSIDER | VOLUME 74 | 25 http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt192.shtm http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt192.shtm

Table of Contents for the Digital Edition of Aftermarket Insider Issue 74

Aftermarket Insider Issue 74
President’s Message
A Celebration Campaign
Association News
Inside Technology
Member Profile
Toolbox: Qr Codes
International Focus
AAIA Market Intelligence: Don’t Do Business Without It!
Association News
Segment Spotlight
Government Affairs
Industry News

Aftermarket Insider Issue 74