Federal Trade Commission "Voids" Hyundai's Warranty Terms

[Gunkk]

FTC determined that Hyundai and other manufacturers who market products in the US will no longer be able to require you to buy specific parts/services to keep your warranty. From http://fortune.com/2018/04/11/ftc-warranty-void-stickers/:

“Provisions that tie warranty coverage to the use of particular products or services harm both consumers who pay more for them as well as the small businesses who offer competing products and services,” said Thomas Paul, the FTC’s acting consumer protection chief.

Although the FTC did not identify the companies it’s warned, it did quote text from their offending terms. And a simple search for that phrasing at least points to possible culprits.

For example, the FTC quotes the phrase “The use of [company name] parts is required to keep your…manufacturer’s warranties and any extended warranties intact.” That language matches the warning used by auto-maker Hyundai.

Here's the Hyundai Page: https://www.hyundaiusa.com/myhyundai/manuals-and-how-tos/Getfaq?faqId=2&category=Consumer_Awareness

FAQs
Why is it important to insist on Hyundai Genuine Parts?

Choosing Hyundai Genuine Parts offers you better fit, finish, design, quality, safety, structural integrity, and resale value than alternative collision parts. The use of Hyundai Genuine Parts is required to keep your Hyundai manufacturer’s warranties and any extended warranties intact. Finally, all new cars leased through Hyundai require that Genuine Parts be used for collision repairs.

 

[QuantumRift]

Re: Federal Trade Commission "Voids" Hyundai's Warranty Terms

The Magnuson-Moss Warranty Act of 1975 states that a dealer must prove that aftermarket equipment caused the need for repairs before it can deny warranty coverage. However, if the reason for a parts failure is unclear, a dealer will usually charge you to diagnose the vehicle.

Basically, if you use a FRAM air filter instead a 'Genuine Hyundai Part' and subsequently you need engine repair work under warranty, they cannot claim that the Fram air filter caused the problem and deny coverage.

In a Consumer Alert issued by the Federal Trade Commission (FTC), the agency confirmed that “The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket part.” The alert outlines key provisions in the law that provides protections to car owners. As defined by the FTC, an “aftermarket' part is a part made by a company other than the vehicle manufacturer or the original equipment manufacturer.”

“The FTC’s reference to aftermarket parts is equally applicable to specialty parts,” said Russ Deane, SEMA’s General Counsel. “Under the Magnuson-Moss Warranty Act, the warranty cannot be conditioned to a specific brand of parts, services or vehicle modifications unless those parts or services are provided free of charge.”

The alert notes that a consumer has the right to patronize independent retail stores and repair shops for parts and service without fear of voiding the new car warranty. The dealer/vehicle manufacturer has the right to deny a warranty repair but they must demonstrate that the aftermarket part caused the problem. The warranty remains in effect for all other covered parts.


The FTC alert may be downloaded using this link.
https://www.sema.org/sema-enews/2011/01/ftc-validates-right-to-install-aftermarket-partshttp://www.semasan.com/semaga/images/warranty_ftc.pdf

The alert was issued in response to an FTC complaint filed last August (2010) by the Automotive Aftermarket Industry Association (AAIA), Automotive Oil Change Association (AOCA) and the Tire Industry Association (TIA).