FTC Reminds ASRock, Gigabyte, and Zotac about Illegal Warranty Practices

The Federal Trade Commission (FTC) recently issued warnings to ASRock, Gigabyte, and Zotac regarding the use of “warranty void if removed” stickers on their products. These stickers, commonly found covering screw holes on gadgets, are deemed illegal by the FTC.

In letters sent to the manufacturers, the FTC expressed concerns that go beyond just the surface level of these stickers. The agency urged the companies to revise their warranty policies and ensure that their customer support practices do not unlawfully threaten consumers’ warranties.

ASRock’s warranty explicitly states that the warranty will be void if products are tampered with in any way, such as opening the outer case or installing/removing additional parts. Similarly, Gigabyte’s warranty includes a clause that removes coverage if the manufacturing sticker inside the product is removed or damaged.

The specific law invoked by the FTC is the federal Magnuson-Moss Warranty Act, which aims to prevent companies from enforcing unfair warranties and misrepresenting them to consumers. This law prohibits companies from conditioning warranties on consumers using specific brands or services, unless provided for free or with FTC approval.

The FTC has informed the manufacturers that it will review their written warranties and promotional materials after 30 days. The agency has also preserved online pages related to the issue for further investigation.

While "warranty void if removed" stickers may be acceptable in some parts of the world, they are deemed illegal in the United States. Consumer rights advocates like iFixit have raised awareness about the unenforceability of these stickers.

Take Action Against Unlawful Warranty Practices

It is crucial for companies to comply with consumer protection laws and ensure that their warranty policies are fair and transparent. The FTC’s actions serve as a reminder to manufacturers to uphold their legal obligations and prioritize consumer rights.

By holding companies accountable for illegal warranty practices, the FTC is safeguarding consumers against deceptive tactics that may limit their rights. It is essential for consumers to be aware of their rights under the Magnuson-Moss Warranty Act and to report any violations to the appropriate authorities.

As consumers, it is important to research companies’ warranty policies before making a purchase and to question any unfair or restrictive terms. By staying informed and advocating for transparency in warranty practices, we can contribute to a more ethical and consumer-friendly marketplace.

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