The Magnuson-Moss Warranty Act does not cover the advertising of warranties. However, warranty advertising falls within the scope of the FTC Act, which generally prohibits "unfair or deceptive acts or practices in or affecting commerce." Therefore, it is a violation of the FTC Act to advertise a warranty deceptively.
How to Advertise Warranties Covered by the Pre-Sale Availability Rule
In general, if a print or broadcast ad
for a consumer product mentions a warranty, and the advertised product is covered by the
Pre Sale Availability Rule (that is, the product is sold in stores for more than $15) the
ad should inform consumers that a copy of the warranty is available to read prior to sale
at the place where the product is sold. Print or broadcast advertisements that mention a
warranty on any consumer product that can be purchased through the mail or by telephone
should inform consumers how to get a copy of the warranty.
How to Advertise a Satisfaction Guarantee
Regardless of the price of the product,
advertising terms such as "satisfaction guaranteed" or "money back
guarantee" should be used only if the advertiser is willing to provide full refunds
to customers when, for any reason, they return the merchandise.
An ad mentioning a satisfaction guarantee or similar offer should inform consumers of any material conditions or limitations on the offer. For example, a restriction on the offer to a specific time period, such as 30 days, is a material condition that should be disclosed.
How to Advertise a Lifetime Warranty or Guarantee
"Lifetime" warranties or guarantees can be a source
of confusion for consumers. This is because it is often difficult to tell just whose life
measures the period of coverage. "Lifetime" can be used in at least three ways.
For example, a warrantor of an auto muffler may intend his "lifetime" warranty's
duration to be for the life of the car on which the muffler is installed. In this case,
the muffler warranty would be transferable to subsequent owners of the car and would
remain in effect throughout the car's useful life.
Or the warrantor of the muffler might intend a "lifetime" warranty to last as long as the original purchaser of the muffler owns the car on which the muffler is installed. Although commonly used, this is an inaccurate application of the term "lifetime."
Finally, "lifetime" can be used to describe a warranty that lasts as long as the original purchaser of the product lives. This is probably the least common usage of the term.
To avoid confusing consumers about the duration of a "lifetime" warranty or guarantee, ads should tell consumers which "life" measures the warranty's duration In that way, consumers will know which meaning of the term "lifetime" you intend.
