Earlier this month, the Federal Trade Commission ruled that stickers which warned customers that their warranties would be void if removed, were illegal. These stickers are common on video game consoles from Sony, Microsoft, and Nintendo.
Now it's been revealed that the FTC has given the three major video game companies, and three other companies, 30 days to review their warranties or face "legal action" from the FTC.
Motherboard obtained the letters the FTC sent out to Nintendo, Microsoft, Sony, as well as Hyundai, HTC and Asus, via the Freedom of Information Act. The letters were sent on April 9 and written by FTC associate director of marketing practices Lois Greisman. In those letters the FTC warns that the six companies had 30 days to change the prohibited warranty policies or prepare to face legal action by the FTC.
"This letter places you on notice that violations of the warranty and FTC Acts may result in legal action," states the FTC's letter. "FTC investigators have copies and preserved the online pages in question, and we plan to review your company's written warranty and promotional materials after 30 days. You should review the Warranty and FTC Acts and if necessary, revise your practices to comply with the Acts' requirements."
The Act in question is the 1975 Magnuson-Moss Warranty Act which made it so that no manufacturer charging more than $5 for a product could place restrictions on the repairer of the device.
Motherboard compiled all six letters sent out to the different companies, but the only difference between them is the specific examples the FTC has taken from a company's warranty page that violates the FTC acts. For example, the FTC cites the various third-party repair restriction notes on all three video game company's written warranty.
We have reached out to Nintendo, Microsoft, and Sony regarding the story and are awaiting responses.