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FTC RIN: 3084-AB24 Publication ID: Fall 2015 
Title: Rule Governing Disclosure of Written Consumer Product Warranty Terms and Conditions 
Abstract:

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. On July 20, 2015, the Commission concluded its review of the Interpretations, Rules, and Guides under the Magnuson-Moss Warranty Act and announced it would keep the Rules and Guides in their present form (Rules at 16 CFR 701-703; Guides at 16 CFR 239) while modifying the Interpretations in 16 CFR 700.10 and 700.11(a). See 80 FR 42710 (Final Rule) (July 20, 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.

 
Agency: Federal Trade Commission(FTC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Completed Actions 
Major: No  Unfunded Mandates: No 
CFR Citation: 16 CFR 701   
Legal Authority: 15 U.S.C. 41 et seq.   
Legal Deadline:  None
Timetable:
Action Date FR Cite
ANPRM  08/23/2011  76 FR 52596   
Final Rule  07/20/2015  80 FR 42710   
Final Rule Effective  07/20/2015 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
International Impacts: This regulatory action will be likely to have international trade and investment effects, or otherwise be of international interest.
RIN Data Printed in the FR: No 
Related RINs: Previously reported as 3084-AA72 
Agency Contact:
Svetlana S Gans
Attorney
Federal Trade Commission
Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., CC-8528,
Washington, DC 20580
Phone:202 326-3708
Email: sgans@ftc.gov