View Rule

As part of the systematic review of all Commission rules, on August 23, 2011, the Commission initiated its periodic review of the Consumer Warranty Rule (or the Rule Governing the Disclosure of Written Consumer Product Warranty Terms and Conditions, Rule 701) by publishing a notice seeking public comments on the effectiveness and impact of the rule. 76 FR 52596. The comment period closed on October 24, 2011. Staff forwarded its recommendation to the Commission in March 2015 and Commission action is anticipated by May 2015.

The Consumer Warranty Rule establishes requirements for warrantors for disclosing the terms and conditions of written warranties on consumer products actually costing the consumer more than $15.00. Rule 701 specifies the information that must appear in the written warranty, as well as the exact language that must be used for certain disclosures. Under Rule 701, the information must be disclosed in simple, easily understood, and concise language in a single document. In addition to specifying the information that must appear in a written warranty, Rule 701 also requires that, in instances where the warrantor uses a warranty registration or owner registration card, the warranty must disclose whether that registration card is a condition precedent to warranty coverage. Finally, it provides that, in connection with some "seal of approval" programs, the disclosures do not have to be given in the actual seal itself, if they are made in a publication with a general circulation.