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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. 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).

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.