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Compliance Best Practices For Written Warranties

Toby Graham /

The Magnuson-Moss Warranty Act was passed in 1975 to create a system of rules that ensure clearly written and displayed warranties that protect both your business and your customers. The competitive advantage of having easy to find and read warranties is that your customers can easily compare your offer to competitors. We’ve put together a best practices list so you can make sure you are in compliance and taking the best care of your customers.

Magnuson-Moss Warranty Act Best Practices

The Magnuson-Moss Warranty Act applies when the company gives a written warranty in connection with the sale of consumer products, such as cars. The Magnuson-Moss Warranty Act requires you to take certain measures to protect your customers from deceptive warranties and to make your warranties more readily understandable and enforceable

3 Things You Need to Do If You Give a Written Warranty

  1. The warranty must be clearly and conspicuously labeled as full or limited.
  2. The warranty coverage must be contained in a single, clear, and easy to read document.
  3. Ensure that written warranties are available where your goods are sold so that your customers have an opportunity to read the warranties before making a purchase.

Warranty Quick Tips

Use a written warranty form that has been approved by your company

Obtain approval from your finance director before making any changes to the written warranty

Display the text of your company’s warranty in close proximity to the warranted products or place signs advising your customers of the availability of the written warranty and alerting your customers of their right to ask for the warranty in prominent locations

Provide a copy of the warranty to your customers prior to a sale

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This infographic is an oversimplification of the Magnuson-Moss Warranty Act, and it’s not intended as legal advice. Consult your legal counsel for more detailed information.

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