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As part of the systematic review of all Commission rules, on August 23, 2011, the Commission initiated its periodic review of the Rule Governing Informal Dispute Settlement Procedures (Rule 703) 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.

Rule 703 establishes minimum requirements for those informal dispute settlement mechanisms (IDSM) that are incorporated by the warrantor into its consumer product warranty. By incorporating the IDSM into the warranty, the warrantor requires the consumer to use the IDSM before pursuing any legal remedies in court. Among other things, the rule sets out the mechanism's structure, the qualifications of decision makers, the procedures for resolving disputes, and recordkeeping requirements of such IDSMs. The rule also prescribes the duties of the warrantor in making consumers aware of the IDSM and how to use it, as well as the warrantor's duties to comply with the IDSM's requests and decisions. The rule also requires IDSMs that operate under Rule 703 to submit annual audits to the Federal Trade Commission to determine their compliance with the rule.