What is The Magnuson-Moss Warranty Act?
December 16, 2024
By: Robert Silverman
What Is the Magnuson Moss Warranty Act?
Is your car back in the shop again? State lemon laws can help. Federal law protects you too, and the Magnuson Moss Warranty Act may be your best bet.
Jan Jeffries bought a certified used Jaguar about a year ago. The trouble started almost right away. The antilock brakes kept failing and went back for repair after repair.
His problems didn’t fit his state’s lemon law. He still had rights under the federal Magnuson Moss Act.
“If the vehicle is under warranty and you’ve had problems with it, subject to repair, and it has not been resolved, you have federal Magnuson Moss warranty rights,” says attorney Craig Kimmel.
The Mag Moss Act reaches cars still covered by the original manufacturer’s warranty or an extended warranty. Kimmel says the list of qualifying problems is long. “We’re talking brakes, transmission, suspension, head lights, water leak, paint defect, any of these problems and more. Those issues the consumer should step up and force the manufacturer to comply with the warranty and if they can’t, call a lawyer.”
That’s what Jan did. “I got $6,000 from Jaguar as compensation for what would ultimately be reduced value of the vehicle.”
The Federal Magnuson Moss Warranty Act of 1975
The Magnuson Moss Warranty Act is the federal law that sets the rules for written warranties on consumer products. It became law on January 4, 1975. Its full name is the Magnuson Moss Warranty Federal Trade Commission Improvement Act, and you’ll find it in the U.S. Code at 15 U.S.C. §§ 2301 through 2312.
People call it a lot of things. The Magnuson Moss Act. The Mag Moss Act. The federal lemon law. Same law.
Here’s the short Magnuson Moss Warranty Act summary. According to the Federal Trade Commission, Title I of the Act does four things.
- It gives the FTC power to write rules for written warranties, including how warranty terms get disclosed.
- It sets the standards a warranty must meet to be called “full.”
- It limits a seller’s ability to disclaim implied warranties.
- It gives you a way to sue when a company breaks a warranty or service contract.
A 2015 amendment brought the law online. Manufacturers can now post warranty terms on their websites, as long as the product, packaging, or manual tells you where to find them and gives you an offline way to get a copy. Stores still have to make the terms available to you before you buy.
What Does the Magnuson Moss Warranty Act Apply To?
The Magnuson Moss Warranty Act applies to consumer products sold with a written warranty. The statute defines a consumer product as tangible personal property normally used for personal, family, or household purposes. The car you drive to work and the grocery store fits. So does your truck, SUV, or motorcycle.
A written warranty is a written promise that the materials and workmanship are free of defects, or that the product will perform at a certain level for a set time. It also covers a written promise to repair, replace, or refund if the product falls short. Your new car’s bumper to bumper and powertrain coverage both count.
The law protects more than the first buyer. It also covers anyone who gets the product while the warranty is still running, plus anyone the warranty or state law lets enforce it.
What the law doesn’t do matters too. It doesn’t force any company to offer a warranty, and it doesn’t set how long a warranty lasts. It sets the rules for the warranties companies choose to give. Those rules kick in for products that cost more than $5, so every car clears the bar.
What a warranty has to tell you
The Act requires warrantors to disclose warranty terms in simple, readily understood language, to the extent FTC rules require. Those rules can require the warranty to spell out
- the name and address of the company giving the warranty
- the parts and products covered
- what the company will do if something fails, at whose expense, and for how long
- what you have to do and what you have to pay
- exceptions and exclusions
- the step by step process for getting a repair
- any dispute program you must use before going to court
- a short description of your legal remedies
No brand name strings attached
A warrantor can’t make your warranty depend on using a certain brand of parts or service, unless it provides those parts or that service free under the warranty. The FTC can waive that rule only if the product won’t work right without them and a waiver serves the public interest. In plain terms, the manufacturer generally can’t void your car warranty just because an independent shop changed your oil.
Full vs. Limited Warranties
Every written warranty on a product over $10 has to carry one of two labels. “Full” or “limited.”
A full warranty has to meet the federal minimum standards in the Act. The warrantor must
- fix the product within a reasonable time and without charge
- leave any implied warranty in place for its full length
- print any limit on consequential damages right on the face of the warranty
- let you choose a refund or a free replacement if the defect is still there after a reasonable number of repair attempts
Anything short of that is a limited warranty. Most new car warranties carry the limited label.
That doesn’t leave you stuck. A limited warranty is still a written warranty, and the Act still lets you sue when the manufacturer fails to honor it.
What counts as a “reasonable number of attempts”? The statute doesn’t put a number on it. It lets the FTC set that by rule for different kinds of defects. In practice, your repair orders tell the story. Same problem, same complaint, back in the shop again and again.
The Magnuson Moss Warranty Act for Used Cars
Implied warranties come from state law. The big one is the implied warranty of merchantability, which is the basic promise that a product works the way that kind of product should.
The Act protects those implied warranties. A seller can’t disclaim them if it gives you a written warranty, or if it sells you a service contract at the time of sale or within 90 days after. The seller can limit an implied warranty to the length of the written warranty, but only in clear language printed prominently on the warranty. A disclaimer that breaks these rules doesn’t count under federal or state law.
This matters most when you buy a used car. Plenty of used cars get sold “as is.” But if the dealer handed you a written warranty or sold you a service contract within 90 days of the sale, the dealer can’t strip away your implied warranties.
Used car buyers get a few more protections.
Your car may still be under the factory warranty. The Act covers anyone who gets a product while the warranty is still running, so that coverage follows the car to you. Jan’s certified used Jaguar is a good example.
Congress also told the FTC to write rules for used car warranties. Those rules can require a dealer to tell you in writing when a used car comes with no warranty at all. That’s where the Buyers Guide sticker on a dealer’s window comes from.
What Does the Magnuson Moss Warranty Act Do When Repairs Fail?
It lets you sue. If a manufacturer, dealer, or service contract company fails to live up to a written warranty, an implied warranty, or a service contract, you can bring a claim for damages and other relief. You can file in state court. You can also file in federal court if the case meets the federal limits, which are at least $25 per individual claim and at least $50,000 for all claims in the suit, not counting interest and costs.
A few rules shape every Magnuson Moss claim.
The company gets a chance to fix it first. The Act requires you to give the warrantor a reasonable opportunity to cure the problem before you sue. Every trip to the service department builds that record. Keep every repair order.
Some warranties require a dispute program first. If your warranty sets up an informal dispute program that meets FTC rules and requires you to use it, you have to go through that program before you file an individual lawsuit. The program’s decision can be used as evidence later. We’ll tell you whether that step applies to your car.
You bring the claim against the company that made the promise. Only the company that actually wrote the warranty is on the hook for it. For a factory warranty, that’s the manufacturer.
The Act defines the fix, too. A remedy means repair, replacement, or refund. A refund means the actual purchase price, less reasonable depreciation for use where FTC rules allow it.
The manufacturer can end up paying your lawyer
This is the part of the Magnuson Moss Warranty Act that changes everything for car owners. If you win, the court can order the company to cover your costs and expenses, including attorneys’ fees “based on actual time expended.” The court decides the amount, and it can deny fees if it finds an award inappropriate. That fee award sits on top of what you win, whatever the size of the case.
Congress had good reason for it. You shouldn’t have to spend thousands on a lawyer just to make a manufacturer keep its own promise. And an automaker writes off the cost of fighting you as a business expense. You don’t have that kind of staying power. Most state lemon laws carry similar fee rules.
The Magnuson Moss Warranty Act and Your State Lemon Law
You don’t have to pick one. The Act says plainly that nothing in it limits any right you have under state law or any other federal law. So a Magnuson Moss Warranty Act lemon law claim can run side by side with a state lemon law claim.
The two work differently. Most state lemon laws set a specific test, usually a set number of repair attempts for the same defect or a set number of days out of service. Meet it and you’re typically entitled to a refund or a replacement vehicle. Some, like the Texas Lemon Law, treat that threshold like a bright line. Once you cross it, you’re owed relief.
The Magnuson Moss Act fills the gaps. Your car might fall outside your state’s lemon law window. It might be used. The problem might not hit the lemon law’s exact numbers. If the car is still under warranty and the manufacturer can’t fix it, the federal law can still get you paid. That’s how Jan walked away with $6,000.
You may also have warranty rights under the Uniform Commercial Code. In most states, though, the UCC won’t let you recover attorneys’ fees, and it isn’t as consumer friendly as the Magnuson Moss Warranty Act or the state lemon laws.
Magnuson Moss Warranty Act FAQ
Does the Magnuson Moss Warranty Act cover used cars?
Yes, in the right situation. It covers a used car still under the factory warranty, a used car the dealer sold with its own written warranty, and a used car sold with a service contract. In the last two cases, the dealer also can’t disclaim your implied warranties.
Is the Magnuson Moss Act the federal lemon law?
People call it that, and it works like one for cars. It’s a federal warranty law that covers all kinds of consumer products. For an automobile, it lets you go after the manufacturer when warranty repairs keep failing.
How many repair attempts do I need?
The federal law doesn’t set a number. It asks whether the manufacturer had a reasonable number of attempts and a reasonable chance to fix the problem. Your state lemon law may set a specific number.
Can the dealer void my warranty if I use my own mechanic?
Generally no. The Act bars a warrantor from tying your coverage to a brand name part or service unless it provides that part or service free.
When did the Magnuson Moss Warranty Act pass?
It became law on January 4, 1975, and took effect six months later.
Still Fighting the Same Repair?
Three trips to the dealer for the same problem is three too many. Open a free claim or call us. We’ll tell you whether the Magnuson Moss Warranty Act, your state lemon law, or both fit your car.
Related links
Sources
Magnuson Moss Warranty Federal Trade Commission Improvements Act, Federal Trade Commission
15 U.S.C. Chapter 50, Consumer Product Warranties, Office of the Law Revision Counsel