Thursday, July 4th 2024

FTC Issues Warning to ASRock, Zotac, and GIGABYTE About Warranty Practices

The United States Federal Trade Commission (FTC) has taken action against three prominent PC companies, ASRock, Zotac, and GIGABYTE, for their unlawful warranty practices. The FTC has issued stern warnings, urging these companies to immediately cease their actions that have been found to be in violation of consumer protection laws. The trio has been engaging in practices that unfairly restrict consumers' ability to repair or modify their own devices with the "warranty void if removed" stickers. The FTC has made it clear that these companies cannot void warranties or deny service simply because a consumer has opened or repaired their product. "Consumers have a right to repair their own products, and companies shouldn't make that harder by putting up illegal barriers," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection, adding that "Manufacturers who try to circumvent the law will face the consequences."

The FTC's investigation revealed that these PC companies have been including deceptive warranty terms that claim consumers will void their warranties if they open or modify their devices. However, the Magnuson-Moss Warranty Act (MMWA), a federal law, prohibits such practices unless the company can demonstrate that the consumer's actions directly caused the need for repair. The FTC has ordered the companies to stop these unlawful warranty practices immediately and to clearly inform consumers of their right to repair their devices without voiding the warranty. All three manufacturers are given a 30-day period to update their promotional and warranty information on their websites to indicate the updated information. Failure to comply with the FTC's directives could result in significant fines and further legal action.
Sources: FTC, via Tom's Hardware
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13 Comments on FTC Issues Warning to ASRock, Zotac, and GIGABYTE About Warranty Practices

#1
_JP_
Fellow TPUers living in the States, is the FTC after "Warranty void if removed" stickers/seals or actually manufacturers that state that the warranty is gone the moment you do more than plug the cord and press "power"?

EDIT: I read the letters, but in ASRock's case, I cannot tell to what product that would apply. Zotac's seems like if just take off the lid of a miniPC to clean the dust, I'm their helpdesk's blacklist.
Posted on Reply
#2
Chrispy_
Good.

"Warranty void if removed stickers" were deemed illegal over a decade ago. It's about time that the companies still applying them were bitten so that they f*cking learn.
Posted on Reply
#3
umeng2002
_JP_Fellow TPUers living in the States, is the FTC after "Warranty void if removed" stickers/seals or actually manufacturers that state that the warranty is gone the moment you do more than plug the cord and press "power"?

EDIT: I read the letters, but in ASRock's case, I cannot tell to what product that would apply. Zotac's seems like if just take off the lid of a miniPC to clean the dust, I'm their helpdesk's blacklist.
Both. The stickers are misleading and their stated warranty policies are illegal. In fact, they can only deny warranty on damage you caused during repair.

So changing thermal paste won't void a warranty unless it was liquid metal that damaged the chip or you didn't apply the paste well enough and the chip overheated... or your fingers slipped and the screw driver damaged the GPU.
Posted on Reply
#4
Courier 6
Zotac had huge warranty issues here in brazil, they screwed a lot of people
Posted on Reply
#5
chrcoluk
FTC seems cool.

In UK our regulation is as light touch as possible and companies usually get 2-3 years to adjust to changes instead of 30 days. :laugh:
Posted on Reply
#6
DaemonForce
Well that's great and everything but JFC it would be helpful if it were first possible to DIAGNOSE whatever issues.
This month the only help I've gotten for warranty support in anything is through newegg and a company rep that directed me to the hotline.
Right to repair is important but so is having a product that actually throws error codes.
Mine didn't throw error codes, or have hardware detection, or anything outside of working lights.
The only thing I've learned out of everything is that no fan spin = no worky.
Everything else, good luck figuring it out because nobody knows anything without a test bench and a bunch of high $$$$$ tools that we don't have.
Posted on Reply
#7
bonehead123
AleksandarKAll three manufacturers are given a 30-day period to update their promotional and warranty information on their websites to indicate the updated information. Failure to comply with the FTC's directives could result in significant fines and further legal action.
Why 30 days to comply, when this crap has been illegal for over 10 years in the US, and those companies have never stopped doing this nonsense.....

And what EXACTLY does the "significant fines" crap even mean when dealing with multi-million/billion $$ companies ??

A few $10, 20, 50, or $100,000 slaps on the wrists won't do/mean shit to them, they'll just mark it/cover it up as something else & then write it off of their taxes, assuming they even pay any taxes in the 1st place...and then jack their prices up even more to cover the losses.. :(

Hello FTC, this is 1992 calling, and we want all our outdated, mickey-mouse fines and toothless legal actions back, like, yesterday

Posted on Reply
#8
RJARRRPCGP
I don't have those stickers on my Zotac GeForce GTX 1660 Super, but my XFX Radeon RX 580 has them. Same with all the other recent video cards I have.
Posted on Reply
#9
eidairaman1
The Exiled Airman
Louis Rossmann needs to know this, anyone have an email for the dude?
RJARRRPCGPI don't have those stickers on my Zotac GeForce GTX 1660 Super, but my XFX Radeon RX 580 has them. Same with all the other recent video cards I have.
Heatgun them
Posted on Reply
#10
RJARRRPCGP
eidairaman1Louis Rossmann needs to know this, anyone have an email for the dude?


Heatgun them
Zotac doesn't seem as likely to use those stickers. Unfortunately, MSI does for their cards, IIRC.
Posted on Reply
#12
Chaitanya
Courier 6Zotac...
I remember Gigabyte also went through something like that few years back. But for Zotac timining couldnt have been worse.
Posted on Reply
#13
Redwoodz
I don't get it. Here in the U.S. those stickers are on every single gpu I have ever bought in the last 30 yrs, from every manucturer. Why single out these 3 now?
Posted on Reply
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