Microsoft, Sony, Nintendo, and three other major companies have received letters from the United States Federal Trade Commission (FTC). The letters were uncovered by Motherboard, and reveal that these companies may be violating federal law due to the way their product warranties currently work.
All of the letters explain that the companies could be violating the FTC Act and the Warranty Act, which in part details that warranties should not mention the use of specific parts and labor. “Warranty language that implies to a consumer acting reasonably under the circumstances that warranty coverage requires the consumer to purchase an article or service identified by brand, trade or corporate name is similarly deceptive and prohibited,” explains the letters.
All six letters appear to be the same, asides from the parts where each of the companies has gone wrong with their warranties. For Microsoft specifically, the FTC has an issue with the way the company represents its Xbox warranty coverage. As stated on the Xbox website: “Microsoft is not responsible and this warranty does not apply if your Xbox One or Accessory is (f) repaired by anyone other than Microsoft.”
Other companies such as HTC, Sony, and ASUS are in trouble for stickers which if removed would void warranties. None of the companies are in legal trouble yet, and the letters serve as a warning and potential notice for future legal action. All companies are being given 30 days to revise their warranty practices to comply with the laws.Further reading: FTC, Microsoft, Nintendo, Sony