SEPTEMBER 2011
                                        

FTC affirms use of recycled parts in repairs

In a letter to Automotive Recyclers Association (ARA) chief executive officer Michael Wilson, the Federal Trade Commission (FTC), affirmed the use of recycled automotive parts in warranty repairs. In the letter, the FTC said, “Warrantors may not claim that a warranty is void simply because a consumer has used an authorized or recycled part.”

To view the alert in pdf format, click here.

“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 their 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.