FTC says Third Party Maintenance DOES NOT VOID Warranties

The Federal Trade Commission (FTC) has told manufacturers that their approach to monopolizing repair and support by putting warranty void stickers on products and in their disclaimers is illegal under the Magnuson-Moss Warranty Act, a law passed back in 1975.

The FTC scoured the websites of an unknown number of companies for their warranties and reported that its staff “saw language that raised concerns that some businesses were telling consumers that their warranty would be void if they used unauthorized parts or service.” The FTC also warns that such statements could be seen as “deceptive” under its own FTC Act.

Unless a company provides the part or service for free or specifically applies to the FTC for an exemption, then it is not allowed to tie a warranty to its parts, no matter how much it wants to.

The price between Third Party Maintenance and Manufacturer-Authorized Maintenance can be 40 to 80%.

Third Party Maintenance is capitalism at work, which is why it is protected under the law.

Something that the FTC has felt the need to remind large manufacturers this week. It has given each company 30 days to “correct any potential violations,” or it will take legal action against them.

XSi is ISO9001:2015 Certified and is a 27 year Federal Contractor and Sub Contractor in compliance with:

  • DFARS 252.246-7007 Counterfeit Electronic Part Detection and Avoidance Program
  • SAE AS5553 Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition Program
  • GIDEP Member
  • Compliance with NIST 800-171

We have a proven Federal performance history with over 40 agencies and Prime Contractors including Lockheed, NGC, CSC, CSRA and many others. References for our Third Party Maintenance program are available from Commercial and Government Customers.

We have a GSA schedule for our services and can sell via HUBZone and through Channel Partners on all IDIQ Contracts.

You can download our latest brochures showing other manufacturers and models we maintain.

About the Author

Todd founded XS International in 1990, helping to build an independent IT support organization led by pioneering executives with proven tenures at Cisco Systems and Juniper Networks. He holds a board of director positions with the world’s two most prominent associations for independent IT support providers – Service Industry Association (SIA) and ASCDI (hardware resellers). He was a founding member of the Digital Right to Repair Coalition (now known as Repair.org, and continues to serve on their Board of Directors. As a hobby, he also co-founded VinoApp, specifically for Argentine wines. Very much a serial entrepreneur, Todd earned his Bachelor’s in Finance from Ohio State University and later completed a three-year Entrepreneurial Masters Program, given by the Entrepreneurs’ Organization & MIT Enterprise Forum. He resides in the greater Atlanta area with his family.