Deceptive Warranty Terms

A warranty is a promise that a product will work as expected or be fixed if something goes wrong. Warranty coverage protects your purchase and provides peace of mind. But sometimes, companies offer deceptive warranties. These are phony promises that can lead you to believe that you have more protection for your item than you do.

These deceptive practices can leave you with a product that isn’t covered when it malfunctions. Deceptive warranties are illegal. If you think your seller offered a deceptive warranty, a warranty lawyer can help.

Definition of a Deceptive Warranty

A deceptive warranty is a written warranty that contains false or misleading information or that fails to provide the coverage it promises. For example, if a warranty promises moving parts coverage for a product that doesn’t have any moving parts, the warranty is deceptive and unlawful.

Common Deceptive Warranty Terms

Read about these common deceptive warranty characteristics and know what to look out for:

False Promises

A warranty that promises service that the warrantor can’t or doesn’t intend to provide is a false promise. Some retailers promise a warranty period, but they don’t live up to these claims. For example, a company might offer a “lifetime guarantee,” which, they say, covers the product’s existence. But when you try to take advantage of the warranty, the company says the warranty coverage has expired.

Misleading Language

Some companies use vague or misleading language to trick you into thinking the warranty provides more coverage than it does. “Limited warranty” might suggest the product is covered for a certain period. However, the fine print reveals restrictions that mean the warranty covers very few parts or services.

Hidden Conditions

Some warranties come with strict conditions even though they look good at first glance. If you don’t follow these conditions exactly, the company might refuse to honor the warranty. For example, a dealership warranty might require you to perform periodic maintenance on a car. But the catch is—the dealer must perform all oil changes and tune-ups. This means you can’t take advantage of that special at the local oil and lube place.

How To Understand Warranties

Here are some tips to help you spot and avoid deceptive and misleading warranty offers:

Read the Entire Warranty, Including the Fine Print

Carefully read the warranty, especially the fine print. Restrictions and limitations are often hidden in the terms and conditions section of the warranty. Pay close attention to phrases such as “excluding,” “may not cover,” or “limited to.” They signal warranty waivers and disclaimers.

Look for Vague Terms

Look for warranties that include confusing language. Terms like “limited warranty” or “lifetime guarantee” can be vague. A limited warranty could have several meanings. It could mean that the product is only covered for certain parts, specific problems, or a short period.

Ask Questions

Don’t be afraid to ask the seller about the parts of the warranty you don’t understand. It’s a red flag if the seller can’t provide clear answers or hesitates to explain the warranty’s details.

Legal Protection Against Deceptive Warranties

State and federal consumer protection laws forbid deceptive warranties. The Magnuson-Moss Warranty-Federal Trade Commission Improvement Act of 1975 is a federal warranty law that protects consumers from deceptive warranties. A consumer product is a for-sale item of personal property that’s typically used for family, personal, or household purposes.

The Magnuson-Moss Warranty Act is also known as the “lemon law.” It governs written warranties, also known as express warranties. It requires that written consumer product warranties are clear and state all terms and conditions. The federal law governs express warranties, although it restricts attempts to waive and disclaim implied warranties.

Implied warranties are unspoken—they automatically apply to the purchase of consumer goods under state law. Implied warranties are regulated, for the most part, under state law.

What To Do if You Have a Deceptive Warranty

The law provides options for resolving warranty service matters. You can request repair, replacement, refund, or credit for the item.

You may have to allow the seller or manufacturer a chance to correct the issue before asking for a refund. Sellers are usually allowed a reasonable number of attempts to fix the problem under federal law. Generally, you can push for a refund only if they fail to fix the problem after a reasonable timeframe.

Always keep your receipts, warranty information, and copies of your communications with the seller. This documentation can be helpful if legal action becomes necessary.

Filing Complaints and Seeking Legal Help

If the seller refuses to honor the warranty, you can file a complaint with a government agency or take the matter to court.

You can file a complaint with the Federal Trade Commission (FTC) if you believe a company has violated the Magnuson-Moss Warranty Act. You can also file a complaint with a state consumer protection agency.

You can also hire a lawyer to handle your claim. A breach of warranty occurs when a product fails to meet the promises made in its warranty. Breach of warranty can be unlawful. A class action lawsuit is also possible if many consumers have the same complaint. The Warranty Act allows class action lawsuits.

If you win your lawsuit, you can recover attorneys’ fees, court costs, and consequential damages.

You should be aware that, while the Warranty Act establishes your right to take matters to court, it also favors informal dispute resolution procedures such as mediation and arbitration.

Need Legal Help?

The Magnuson-Moss Act provides legal protection against deceptive warranties. If you need legal help with a warranted consumer product, a warranty lawyer can guide you you on further legal action.