Blumenthal Statement on FTC Settlement with BMW Over Conditioned Warranty Coverage

(Washington, DC) – Today, U.S. Senator Richard Blumenthal (D-Conn.) issued the following statement after the Federal Trade Commission (FTC) ruled that BMW violated the Magnuson-Moss Warranty Act (MMWA) by misleading consumers about ways in which their warranty could be voided:

“BMW’s settlement with the FTC today should be a wake-up call to all car manufacturers that they can no longer get away with deceiving consumers into believing that their warranties will be voided if they do service or repair work at local shops. For too long, many auto manufacturers have misled customers with false information that bolsters their company’s bottom line. The FTC’s settlement with BMW is a critical step in ending this far-too common, shameful violation of consumer rights.”

Last October, Senator Blumenthal sent a letter to FTC Chairwoman Edith Ramirez urging the Commission to take action to protect consumers against the explicit and de facto warrantor tying practices in the auto service and repair industry and ensure auto companies are adhering to regulations under the Magnuson-Moss Warranty Act.

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