UNITED STATESOF AMERICA

FEDERAL TRADE COMMISSION
WASHINGTON, D.C.

Lois C. Gn:isman
Associate Director
Bureau ofConsumer Protection
Division of Marketing Practices

April 9, 2018
Via Federal Express

Mr. Chen Lai Shen
ChiefExecutive Officer, Director & General Mana~er
ASUSTeK Computer Inc.
No. 15 Li-Te Road, Peitou
Taipei 112, Taiwan
Compliance Warning Re:.Magnuson-Moss Warranty Act
.

Dear Mr. Shen:
The Fede~al Trade Commission ("FTC"), the consumer protection agency (or the United
States, enforces the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 45, which prohibits
unfair or deceptive acts or practices in or affecting commerce. The FTC Act requires that any
representations be truthful and non-misleading. The FTC also enforces the Magnuson-Moss
Warranty Act ("the Warranty Act"), 15 U.S.C. §§ 2301-2312. The Warranty Act is a law that
governs consumer product warranties and, among other things, establishes disclosure standards for
written warranties. These laws apply to foreign companies when their business practices involve
material conduct in the United States or are likely to cause reasonably foreseeable injury within the
United States. See 15 U.S.C. § 45(a)(4)(A); see also 15 U.S.C. § 2310(b).
The Warranty Act prohibits warrantors ofconsumer products costing more than five dollius
from conditioning their written warranties on a consumer's use ofany article or service which is
identified by-brand, trade, or corporate name, unless provided to the consumer for free or the ·
warrantor has been granted a waiver by the CoillI!lission.t Similarly, warranty language that implies
to a consumer acting reasonably under the circumstances that warranty coverage requires the
consumer to purchase an article or service identified by brand, trade or corporate name is similarly
deceptive and prohibited.2 Aviolation of the Warranty Act is a violation of Section 5 of!he FTC
Act.

1
15 U.S.C. § 2302(c). The Commission may grant a waiver ifthe warrantor demonstrates to the Commission that the
warranted product will function properly only ifthe article or service so identified is used in connection with the
warranted product, and the waiver is·in the publicinten:st.
2
16 C.F.R. 700.10; 15 U.S.C. § 23 IO(c).
3
15 u.s.c. § 2310(b).

 In addition, claims by awarrantor that create a false impression that a warranty would be
void due to the use ofunauthorized parts or service may, apart from the Warranty Act, constitute a
deceptive practice under Section 5 ofthe FTC Act.4 Absent a Commission waiver pursuant to
Section 2302(c) ofthe Warranty Act, a warrantor claiming or suggesting that a warranty is void
simply because a consumer used unauthorized parts or service would have no basis for such a claim.

The FTC's Division ofMarketing Practices has reviewed written warranty materials related
to products offered by ASUSTek Computer Inc. (Asus), available on Asus's website,
www.asus.com, a website that markets phones, computers, and other products to consumers. Staff
has concerns about certain representations your company is making regarding its warranty
coverage. Staffis particularly concerned about the following statements in Asus's written warranty:
(The warranty] applies to finnware issues but not to any other software issues or
customer induced damages or circumstances such as but not limited to:
(a) The Product has been tampered wi~ repaired and/or modified by non-authorized
personnel;
·
(c) The warranty seals have been broken or altered;
Staff similarly would be concerned about anyadditional representations made by Asus that state or
imply that its warranty coverage requires a consumer to purchase an article or service identified by
Asus or another brand, trade or corporate name. Furthermore, staffwould be concerned if Asus, in
practice, denied warranty coverage based on the warranty provisions quoted above or similar
provisions.
This letter places you on notice that violations ofthe Warranty and FfC Acts may
result in legal action. FfC investigators have copied 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 FfC Ac~·and ifnecessary, revise your.
practices to comply with the Acts' requirements. By sending this letter, we do not waive the
FfC's right to take law enforcement action and seek appropriate injunctive and monetary
remedies against Asus based on past or future violations.
·

Thank you for your attention to this matter. Please direct any inquiries concerning this letter
to Christine M. Todaro at ctodaro@ftc.gov or (202) 326-3711.
Sij1°ely,

/\~ .

,

~ (),~
Lois C. Greisman
Associate Director

' 15 U.S.C. § 45(a); 80 Fed. Reg. 42710, 42713 (July 20, 2015) (citing Letter from James C. Miller 111, Chairman, Fed.
Trade Comm'n, eta!., to Rep. John D. Dingell (Oct. 14, 1983), reprinted in C/!ffda/eAssocs., Inc., 103 F.T.C. 110, 174
(1984), available at https://www.ftc.gov/publicstatements/1983/I0/ftc.policy-statement-deception, at 2).

2

 UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION
WASHlNGTON, D.C.

Lois C. Greisman
Associate Director
Bureau of Conswner Protection
Division ofMarketing Practices

April 9, 2018
Via Federal Express
Mr. Marcus Woo

General Counsel
HTC Corporation
No. 23, Xinghua Rd. Taoyuan City,
Taoyuan County 330, Taiwan
Compliance Warnmg Re: Magnuson-Moss Warranty Act

Dear Mr. Woo:

:c

'The Federal Trade Conmussion 'FTC"), the consumer protection agency for the United
States, enforces the Federal Trade.Commission Act ('.'FTC Act'\.15 ~.S.C. § 45~ whicp.
prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC: Act requires
that any representations be truthful and non-misleading. The FTC also enforces the Magnuson­
Moss Warranty Act ("the Warranty Act"), 15 U.S.C. §§ 2301-2312. The Warranty Act is a law
that governs consumer product warranties and, among other things, establishes disclosure
standards for written wananties. These laws apply toforeign companies when their business
practices involve material conquct in the United States or are likely to cause reasonably ·
foreseeable injury within the United States. See 15 U.S.C. § 45(a)(4)(A); see also 15 U.S.C. §
2310(b).
.
.
The Warranty Act prohibits warrantors of consumer products costing more than five
dollars from conditioning their written warranties on a consumer's use of any article or service
which is identified by brand, trade, or corporate name, unless provided to the consumer for free
or the warrantor has been granted a waiver by the Commission. 1 Similarly, warranty language
that implies to a consum~r acting reasonably under the circUtnstances that warranty coverage
requires the coDS1µI1er to purchase an article or service identified by brand, trade or corporate
name is similarly deceptive and prohibited.2 A violation ofthe Warranty Act is. a violation of
Section 5 ofthe FTC Act.3
1

15 U.S.C. § 2302(c). The Commission may grant a waiver ifthe warrantor demonstrates to the Commission that
the warranted product will function properly only ifthe article or service so identified is used in connection with the

.

warranted product, and the waiver is in the public interest.
16 C.F.R. 700.10; 15 U.S.C. § 23 I0(c).
I 15 u.s.c. § 23 lO(b),

2

1

 In addition, claims by a: warrantor that create a false impression that a warranty would be
void due to the use of unauthorized parts or service may, apart from the Warranty Act, constitute
4
a deceptive practice under Section 5 of the FTC Act. Absent a Commission waiver pursuant to
.Section 2302(c) of the Warranty Act, a warrantor claiming or suggesting that a warranty is void
simply because a consumer used unauthorized parts or service would have no basis for such a
claim.

The FTC's Division ofMarketing Practices has reviewed written warranty materials.
related to products offered by HTC Corporation (HTC), available on HTC's website, a website
that.markets phones and other products to consumers. Staff has concerns about certain
representations yow: company is making regarding its warranty coverage. Staff is particularly
concerned about the following representations, inclu4ed in HTC's written warranties:
EVEN WITH RESPECT TO THE PRODUCT OR ACCESSORY YOU
PURCHASED, THIS LIMITED WARRANTY SHALL NOT APPLY: 1. if ...
~e warranty seal (void label) has beeri removed, erased, defaced, or altered; or is
illegible; .. . 7.. t<;> unauthorized moc,lifications or connections, unauthori~ed
opening, repair by use of.unauthorized spare parts, or repair by an unauthorized
person or location.

Staff similarly would be concerned about any additiona.l representations made by HTC that state
or imply that its warranty coverage requires a consumer to purchase an article or service
identified by HTC or another brand, trade or corporate name. Furthermore, staff would be
concerned if HTC, in practice, denied warranty coverage based on the warranty provisions
quoted above or any similar provi~ion.
This letter places you on notice that violations of the Warranty and FTC Acts may
result in legal action. FTC investigators have copied and preserved the online pages in
question, a11.d we plan to review your company's written warranty and promotional
_materials.after.30 days. You should review the Warranty and FTC Acts an4 if necessary,
revise your practices to comply with the Acts' requirements. By sending this letter, we do
not waive the FTC's right to take law enforcement action and seek appropriate injunctive
and monetary remedies against HTC Corpor~tion based on past or future violations.

Thank you for your attention to this matter. Please direct any' inquiries concerning this
-letter _to Christine M. Todaro at ctodaro@ftc.gov or (202) 326-3711.

S1!:.,y,C ti .. . _
Lois C. Greis:an~
Associate Director
4

15 U.S.C. § 45(a); 80 Fed. Reg. 42710, 42713 (July 20, 2015) (citing Letter from James C. Miller III, Chainnan,
Fed. Trade Comm'n, et al., to Rep. Jobp D, Dingell (Oct. 14, 1983), reprinted in Cliffdale Assocs., Inc. , 103 F.T.C.
n 0, 174 (1984), available at https:// www.ftc.gov/publicstatements/1983/10/ftc-policy-statement-deception, at 2).

2

 UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION
WASHINGTON, D.C.

Lois C. Greisman
Associate Director
Bureau of Consumer Protection
Division. ofMarketing Practices

April 9, 2018
Via Federal Express

Mr. W. Gerald Flannery
Executive Vice President & Chief Legal Officer
· ·
Hyundai Motor A,merica
10550 Talbert Avenue
.
Fountain Vall~y, California 92708
Compliance Warning Re: Mag:nuson-Moss Warranty Act
•

,

C

••

Dear Mr. Flannery:

the

natio.n 's consumer protection agency, .
The Federal Trade Commission(;'.FTC"),
enforces the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 45, which prohibits unfair
or deceptive acts or practices in or affecting commerce. The FTC Act requires that any
representations be truthful and non-misleading. The FTC also enforces the Magnuson-Moss
Warranty Act ("the Warranty Act"), 15 U.S.C. §§ 2301-2312. The Warranty Act is a law that
governs consumer product warranties and, among other things, establishes disclosure standards
for written warranties. The Warranty Act prohibits warrantors·ofconsumer products costing
mqre than five dollars from <;onditioning their written warranties on a .consumer's use ofany
article or service which is identified by brand, trade, or corporate name, unless provided to the
consumer for free or the warrantor has been granted a waiver by the Commission. 1 Similarly,
warranty language that implies to a consumer acting reasonably under the circumstances that
warranty coverage requires the consumer to purchase an article or service identified by brand~
trade or corporate name is similarly deceptive and prohibited.2 A violation ofthe Warranty.A.ct
is a violation of Section 5 ofthe FTC Act.3
·
In addition, claims by a warrantor that create a false impression ~t a warranty would be
void due to the use of unauthorized parts or service may, apart from·the Warranty Act, constitute

i 15 U.S.C. § 2302(c). The Commission may grant a waiver if the warrantor demonstrates to the Commission that
the warranted product will function properly only ifthe article or service so identified is used in connection with the
warranted product, and the waiver is in the public interest.
2
16 C.F.R. 700.10; 15 U.S.C. § 23IO(c).
3
•
15 u.s.c. § 2310(b).

 a deceptive practice under Section 5 of the FTC Act.4 Absent a Commission waiver pursuant to
Section 2302(c) ofthe Warranty Act, a warrantor claiming or suggesting that a warranty is void
simply because a consumer used unauthorized parts or service would have no basis for such a
claim.
The FTC's Division ofMarketing Practices has reviewed written warranty-and
promotional materials related to Hyundai's vehicles and producis, on Hyundai Motor America's
website, a website that markets its Hyundai vehicles and products to consumers. Staff has
concerns about certain representations your company is making regarding its warranty coverage.
Staff is particularly concerned about the following _statement:

to

The use ofHyundai Genuine Parts is required keep your Hyundai
manufacturer's warranties and any extended warranties intact.
Staff similarly would be concerned about any additional representations made by Hyundai that
state or imply that its warranty coverage requires a consumer to purchase an article or service
.identified by Hyundai or another brand, trade or corporate name. Furthermore, staff would be
concerned if Hyundai, in practice, denied warranty coverage based on the warranty provisions
quoted above or any similar provision.
•

h

This letter places you on notice that violations of the Warranty and FTC Acts may
result in legal action. FTC investigators have copied 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. By sending this letter, we do
not waive the FTC's right to take law enforcement action and seek appropriate injunctive
and .._onetary remedies against Hyundai based on past or future violations.

any inquiries co~ceming this

Thank you_for your attention to this matter. . Please direct
letter to Christine M. Todaro at ctodarq@ftc.gov or (202).326-371 L

Sincerely,

~

i~· C-~

Lois C. Greisman
Associate Director

• 15 U.S.C. § 45(a); 80 Fed. Reg. 42710, 42713 (July 20, 2015) (citing Letter from James C.'Miller III, Chainnan,
Fed. Trade Comm'n, et al., to Rep. John D. Dingell (Oct. i4, 1983), reprinted in Cliffdale Assocs., Inc., l03 F.T.C
110, 174 (1984), available at https://www.ftc.gov/publicstatements/1983/10/ftc-policy-statement-deception, at 2).

2

 UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

(.)

WASHINGTON, D.C.

Lois C. Greisman
Associate Director
Bureau ofConsumer Protection
Division ofMarketing Practices

April 9, 2018

Via Federal Express
Mr. Brad Smith

Chief Legal·Officer
Microsoft Corporation
One Microsoft Way
Redmond, WA 98052
Compliance Warning Re: Magnuson-Moss Warranty Act
Dear Mr. Smith:
The F~deral Trade Commissio_n ("FTC"), the n~tio.n 's consumer protection agency,
enforces the Federal Trade Commission ("FTC Act"), 15 U.S.C. § 45, which prohibits unfair or
deceptive acts or practices in or affecting commerce. The FTC.Act requires that any
representations be truthful and non-misleading. The FTC also enforces the Magnuson-Moss
Warranty Act ("the Warranty Act"), 15 U.S.C. §§ 2301-2312. The Warranty Act is a law that
governs cQnsumer product warranties and, among other things, establishes disclosure standards
for written warranties. The Warranty Act prohibits warrantors ofconsumer products costing
more
five dollars from.conditioning their written warranties on a consumer's use ofany
article or service which is identified by brand, trade, or corporate name, unless provided to the
consumer for free or the warrantor has been granted a waiver by the Commission.1 Similarly,
warranty language that implies to a consumer acting reasonably under the circumstances that
warranty coverage requires the consumer to purchase an article or service identified by brand,
trade or corporate name is similarly deceptive and prohibited.2 A violation ofthe Warranty Act
is a violation ofSection 5 ofthe FTC Act.3

than

In addition, claims by a warrantor that create a false impression that a warranty would be
void due to the use of unauthorized parts or service may, apart from the Warranty Act, constitute

1

15 U.S.C. § 2302(c). The Commission may grant a waiver if the warrantor demonstrates to the Commission that
the warranted product will function properly only ifthe article or service so identified is used in connection with the
warranted product, and the waiver is in the public interest.
2
16 C.F.R 700.10; 15 U.S.C. § 23IO(c).
3
15 u.s.c. § 2319(b).

1

 a deceptive practice-under Section 5 of the FTC Act.4 Absent a Commission waiver pursuant to
Section 2302(c) ofthe Warranty Act, a warrantor claiming or suggesting that a·warranty is void
simply because a conswner used unauthorized parts or service would have no basis for such a
claim.
The FTC' s Division ofMarketing Practices has reviewed written warranty materials
related to products offered by Microsoft Corporation, available on Microsoft's website,
www.xbox.com, a website that markets gaming systems·and other products to consumers. Staff
has concerns about certain r~presentations your company is making regarding its warranty
coverage. Staff is particularly concerned about the following·statements, included in Microsoft's
written warranty:
·
Microsoft is not responsible and this warranty does not apply if Your Xbox One
or Accessory i:,: ... (f) repaired ~Y anyone other than Microsoft.
Staff similarly would be concerned about any additiorutl representations made by Microsoft that
state or imply that its warranty coverage requires a consumer to purchase an article or service
identified by Microsoft or another brand, trade or corporate name. Furthermore, staff would be
concerned ifMicrosoft, in practice, denied warranty coverage based on the warranty provisions
quoted above or any similar provisi~n.
This letter places you on notice that violations of the Warranty and FTC Acts may
result in legal action. FTC investigatol'.S have1 copied and preserved the onlioe pages in
question, and we plan to review your company's written warranty and promoti.o nal
materials after 30 days. You should review the Warranty and FTC Acts and if necessary,
revise your practices to comply with the Acts' requirements. By sending this letter, we do
not waive the FTC's right to take law enforcement action and seek appropriate injunctive
and monetary remedies against Microsoft based on past or future violations.

Thank you for your attention to this matter.. ·Please direct any inquiries concerning this
letter to Christine M. Todaro at ctodaro@ftc.gov or (202) 326-3711. ·
Sincerely,

dc~A4~
Lois C. Greisman
Associate Director

4
15 U.S.C. § 45(a); 80 Fed. Reg. 42710, 42713 (July 20, 2015) (citing Letter from James C. Miller HI, Chairman,
Fed. Trade Comm'n, et al., to Rep. John D. Dingell (Oct 14, 1983), reprinted in Clijfdale Assocs., Inc., 103 F.T.C.
110, 174 (1984), available at https://www.ftc.gov/publicstatements/l 983/l 0/ftc-policy-statement-deception, at 2).

2

 .•)
'

(

,

- ..... -

·-. ~.

UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

-.

. .

WASHINGTON, D.C.

,/

Lois C. Greisman
Associate Director
Bureau ofConsumer Protection
Division ofMarketing Practices

April 9, 2018
Via Federal Express
Ms. Carrie Schnelker
Senior Director and Deputy General Counsel
Nintendo of America Inc.
4600 150th Ave. NE
Redmond, _WA 98052
_Compliance Warning Re: Magnuson-Moss Warranty Act

Dear Ms. Schnelker:
The Fed~ral 'Trade Commissioll("FTC"), tlie ~ation's cons~er protectio~ agency,
enforces the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 45, whlch prohibits unfair
or deceptive acts or practices in or_affecting commerce. The F:TC Act requires that any
representations be truthful and non-misleading. The FTC also enforces the Magnuson-Moss
Warranty Act ("the Warranty Act"), 15 U.S.C. §§ 2301-23 12. The Warranty Act is a law that
governs consumer product warranties and, among other things, establishes disclosure standards
for wri~en warranties. The Warranty Act prohibits warrantors ofconsumer products costing
more than five doUars from conditioning their written warranties on a consumer's use ofany
article or service which is ·identified by brand, trade, or corporate name, unless provided to the
consumer for free or the warrantor has been granted a waiver by the Commission.1 Simµarly,
warranty language that implies to a consumer acting reasonably under the circumstances that
warranty coverage requires the consumer to purchase an article or service identified by brand,
trade or corporate name is similarly deceptiv:e and prohibited.2 A violation ofthe Warranty Act
is a violation ofSection 5 ofthe FTC Act.3

a

In addition, claims-by a warrantor that create a false impression that warranty would be
void due to the use ofunauthoi:ized parts or service may, apart from the Warranty Act, constitute -

1

15 U.S.C. § 2302(c). The Commission may grant a waiver ifthe warrantor demonstrates to the Commission that
the warranted product will function properly only if the article or service so identified is used in connection with the
warranted product, and the waiver is in the public interest.
2
16 C.F.R. 700.10; 15 U.S.C. § 23 lO(c).
3
15 u,s.c. § 2310(b).

 a deceptive practice under Section 5 ofthe .F TC Act. 4 Absent a Commission waiver pursuant to
Section 2302(c) of the Warranty Act, a warrantor claiming or suggesting that a warranty is void
simply because a consumer used unauthorized parts or service would have no basis for such a
claim.
The FTC's Division ofMarketing Practices has reviewed written warranty materials
related to products offered by Nintendo of America, Inc., available on Nintendo's website,
www.nintendo.com, a website that markets gaming systems and other products to conswners.
Staff has concerns about certain representations your company is making regarding its warranty
coverage. Staff is particularly concerned about the following statements, included in Nintendo's
written warranty:
THIS WARRANTY SHALL NOT APPLY IF THIS PRO.DUCT: (a) IS USED
WITH PRODUCTS NqT SOLD OR LICENSED BY NINTEND.O
(INCLUDING BUT NOT LIMITED TO, NO~-LICENSED GAME
ENHANCEMENT AND COPIER DEVICES, ADAPTERS, SOFTWARE, AND
POWER Sl)PPLIES)
Staff similarly would be concerned about any additional representations made by Nintendo that
state or imply that its warranty coverage requires a conswner.to.purchase an article or service
identified by Nintendo or another brand, trade or corporate name. Furthermore, staff would be
concerned ifNintendo, in practice, denied warranty coverage based on the warranty provisions
quoted above or any similar provision.
.
. .
This letter p~aces yolll on notice that violations ofthe Warranty and FTC Acts may
result in legal action. FTC investigators have copied 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 1f necessary,
revise your practices ·to comply with the Acts' r'equirements. By sending this letter, we do
not waive the FTC's righHo take law enforcement action and· se~k appropriate injunctive
·
and monetary ren1edies ·against Nintendo based on past or future violation1'.
Thank you for your attention to this matter. Please direct any inquiries concerning this
letter to Christine M. Todaro at ctodaro@ftc.gov or (202) 326-3711.

~'t:J:i~

Lois C. Greisman
Associate Director

" 15 U.S.C. § 45(a); 80 Fed. Reg. 42710, 42713 (July 20, 2015) (citing Letter from James C. Miller III, Chairman,
Fed. Trade ·Comm'n, et al., to Rep. John D. Dingell (Oct. 14, 1983), reprinted in Cliffdale Assocs., Inc., 103 F.T.C.
110, 174 (1984), available at https://www.ftc.gov/publicstatements/1983/10/ftc-policy-statement-deception, at 2).

2

 UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION
WASHINGTON, D.C.

Lois C. Greisman
Associate Director
Bureau of Consumer ·Protection
Division ofMarketing Practices

April 9, 2018
Via Federal Express
Mr..Mark E. Khalil
Executive Vice President,.General Counsel and Secretary
Sony Computer Entertainment America LLC
550 Madison Avenue
·
·
New York, New York 10022
Compliance Warning Re: Ma_gnuson-Moss Warranty Act
Dear Mr. Khalil:
The Federal Trade Commission (''FTC"), the nation's consumer protecti~n ag~ncy,
enforces the Federal Trade Commisi;ion Act ("FTC Act"), 15 u.s.c. § 45, which prohibits unfair
or deceptive acts or practices in or affecting commerce. The FTC Act requires that any
representations be truthful and non-misleading. Th~ FTC also enforces the Magnuson-Moss
Warranty Act ("the Warranty Act"), 15 U.S.C. §§ 2301-2312; The Warranty Act is a law that
governs consumer product warranties and, among other things, establishes disclosure standards
for written warranties. The w·arranty Act prohibits warrantors ofconsumer products costing
more than five dollars from conditioning their written warranties on a consumer's use ofany
article or service which is identified by brand, trade, or corporate name, unless provided to the
consumer for free or the warrantor has been granted a waiver by the Commission. 1 Simiiarly,
warranty language that implies to a consumer acting reasonably under the circumstances that
warranty coverage requires the consumer to purchase an article or service identified by brand;
trade or corporate name is similarly deceptive and p.rohibited.2 A violation qfthe Warranty Act
is a violation of Section 5 ofthe FTC Act.3
In addition, claims by a warrantor that create a false impression that a warranty would be
void due to the use of unauthorized parts or service may, apart from the Warranty Act, constitute

1

15 U.S.C. § 2302(c). The Commission may grant a waiver ifthe warrantor demonstrates to the Commission that
the warranted product will function properly only ifthe article or service so identified is used in connection with the
warranted product, and the waiver is· in the public interest.
2
16 C.F.R. 700.10; 15 U.S.C. § 2310(c).
3
15 u.s.c. § 2310(b).

1

 a deceptive practice W1der Section 5 ofthe FTC Act.4 Absent a Comniission waiver pursuant to
Section 2302(c) ofthe Warranty Act, a warrantor claiming or suggesting that a warranty is void
simply because a consumer used unauthorized parts or service would have no basis for such a
claim.
The FTC's Division ofMarketing Practices
written warranty materials
. bas reviewed
.
related to products offered by Sony Computer Ente~ainment America LLC ("SCEA") available
on SCEA's website, www.playstation.com, a website that markets gaming systems ·and other
products to consumers. Staff has concerns about certain representations your company is making
regarding its warranty coverage. Staff is particularly conc_emed about the following statements,
included in SCEA's· written warranty:
·
THIS wARRANTY DOES NOT APPLy IF THIS PRODUCT: ' .. (B) rs USED
WITH PERIPHERALS SCEA. DOES NOT LICENSE OR SELL, INCLUl?ING
NON-LICENSED GAME ENBANCE11ENT DEVICES, CONTROLLERS,
ADAPTORS .AND POWER SUPPLY DEVICES ("NON-LICENSED
PERIPHERALS"); ....(G) HAS HAD THEWARRA.NTY SEAL ON THE PS4™
SYSTEM ALTERED, DEFACED, OR REMOVED.
I

'

•

'

Staff similarly would be concerned about any additional representations made by SCEA that
state or imply that its warranty coverage requires a consumer to purchase an article or service
id~ntified by SCEA or another brand, trade or corporate name. Furthermore, staff would be
concerned ifSCEA, in practice, denied warranty coverage based on the warranty provisions
quoted above or any similar provision.
This letter places you on notice that violations of the Warran~ and FTC Acts may
result in legal action. FTC investigators have copied 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 yo11r pr~ctices comply wit~.the A,cts' requirementii. By send.ing _thi~ letter, w~ do
not waive the FTC's right to take Jaw enforcement action and seek appropriate injunctive
and mone~ary remedies against SCEA based on past or future violations.

~o

Thank you for your attention to this matter. Please direct any inquiries concerning this
letter to Christine_M. Todaro at ctodaro@ftc.gov or (202) 326-3711.

~ely,~

f!i{d~:ismrui

'

Associate Director
4
15 U.S.C. § 45(a); 80 Fed. Reg. 42710, 42713 (July 20, 2015) (citing Letter from James C. Miller IIl, Chairman,
Fed. Trade Comm'n, et al., to Rep. John D. Dingell (Oct. 14, 1983), reprinted in Clijfdale A.ssocs., Inc., 103 F.T.C.
l l 0, 174 (1984), available at https://www.ftc.gov/publicstatements/1983/10/ftc-policy-statement-deception, at 2).

2