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FTC Confirms Recycled Parts are OK for Warranties

Posted by admin on July 29th, 2011 in Category Auto Industry, Going Green, Scrap Cars in the USA (no responses)

Michael Wilson of the Federal Trade Commission confirmed in a letter to the ARA the use of recycled automotive parts is OK for warranties!

In the letter, the FTC says: “Warrantors may not claim that a warranty is void simply because a consumer has used an authorized or recycled part.”

“Tying warranties to the use of new, authorized replacement parts is illegal under the Magnuson-Moss Act,” said Wilson. “Several months ago we asked the FTC to review position statements by several automobile manufacturers that implied that recycled parts are lesser quality parts than new OEM parts and that there use could void a manufacturer warranty,” said Wilson.

ARA raised concerns with the FTC that the position statements of the automobile manufacturers might mislead consumers into thinking that using recycled parts in a repair could void their warranty. As a result, the FTC announced the update of a consumer alert entitled Auto Warranties, Routine Maintenance, and Repairs: Is Using the Dealer a Must? The revised alert specifically notes that the mere use of recycled parts does not void a warranty and that it is illegal for warrantors to void a warranty or deny coverage simply because a recycled part was used.

This is great news for the environment and also for the auto recycling industry.  Using used green auto parts is a great way to keep the planet green and save some cash on repairs!

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