Aftermarket Insider Issue 68 - (Page 6)

govERNMENT AFFAiRS “read” alert New FTC Release on New Car Warranties, Must-Read for Car Owners and the Aftermarket AAIA also charged in the letter that statements made in the Honda release (FTC) has released an FTC Consumer regarding the quality of non-Honda Alert entitled “Auto Warranties, parts were misleading to consumers. Routine Maintenance and Repairs: Is Using the Dealer a Must?” after a “In fact, thousands of replacement complaint filed by the Automotive parts produced by companies other Aftermarket Industry Association than Honda are available and sold for (AAIA), Automotive Oil Change Honda vehicles. In the vast majority of Association (AOCA) and the Tire cases, the reality that these parts are Industry Association (TIA). The FTC installed and used without any related Alert was distributed in response to vehicle issues points to the clear fact a letter sent by AAIA, AOCA and that the quality of aftermarket parts TIA charging that Honda had issued are known and preferred by many a position statement, which appeared designed to give car owners the impres- U.S. consumers,” the letter states. sion that their warranty right would be The FTC Alert provides significant jeopardized if they used “aftermarket” guidance to consumers by spelling parts. Specifically, the Aug. 20, 2010 out a key provision of the MagnusonHonda release told its customers that Moss Warranty Act that it is illegal “only by purchasing Honda Genuine for manufacturers or dealers to claim parts through an authorized U.S. that a consumer’s warranty is void, Honda dealer can you be assured or to deny warranty coverage, simply of the replacement part’s authenbecause someone other than the dealer ticity, reliability and compatibility.” provided service. The alert further states that an independent techAAIA immediately responded to the Honda release, issuing a letter to the Federal Trade Commission (FTC) on Aug. 25, which charged that the Honda release was “in direct conflict with the MagnusonMoss statute,” which prohibits the conditioning of a warranty on the use of the manufacturer’s brand products. The Federal Trade Commission nician, a retail chain shop or even the car owner can do routine maintenance and repairs on their vehicle, without jeopardizing their new car warranty. “Most surveys have shown that absent the warranty, the vast majority of consumers choose the independent aftermarket based on quality, price and convenience,” said Kathleen Schmatz, AAIA president and CEO. “This FTC Alert will ensure they will have the peace of mind to exercise that choice.” A copy of the FTC Consumer Alert can be found on the agency’s Web site at http://www.ftc.gov/bcp/edu/ pubs/consumer/alerts/alt192.shtm. 6 | AFTERMARKET INSIDER | VOLUME 68 http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt192.shtm

Table of Contents for the Digital Edition of Aftermarket Insider Issue 68

Aftermarket Insider Issue 68
Contents
President’s Message
The Automotive Aftermarket’s Green Story
Consumer Alert: FTC Responds to Warranty Misinformation
Government Affairs
Industry News
Member Profile
Toolbox: Downtime at Work
Toolbox
International Focus
Industry News
Technology Update
Market Intelligence

Aftermarket Insider Issue 68