Magnuson-Moss Warranty Act:

FTC's and Better Business Bureau's Handling of Automobile Warranty Complaints

HRD-89-57: Published: Mar 14, 1989. Publicly Released: Mar 20, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

In response to a congressional request, GAO provided information on how the Federal Trade Commission (FTC) and a nonprofit organization handled an individual's claims under an automobile manufacturer's written warranty.

GAO found that: (1) the individual purchased a new automobile from an automobile dealer and received a written warranty that required consumers to use an informal dispute resolution program before seeking legal remedies; (2) after unsuccessfully trying to obtain repairs under the warranty, the individual submitted claims requesting that a local branch of the organization use certain FTC standards to settle his dispute and that the automobile manufacturer replace the vehicle; (3) FTC did not have the authority to intervene in individual consumer disputes; (4) FTC noted that its standards did not apply, since the automobile manufacturer made the use of the informal dispute program voluntary; (5) the nonprofit organization correctly did not use the FTC standards the claimant requested; and (6) FTC properly suggested that the claimant make a claim in a state or federal court under the Magnuson-Moss Warranty Act.

Nov 16, 2015

Oct 28, 2015

Sep 8, 2015

Jul 27, 2015

Jul 8, 2015

Jun 25, 2015

May 19, 2015

Apr 15, 2015

Feb 12, 2015

Dec 11, 2014

Looking for more? Browse all our products here