FTC warns Gigabyte, ASRock, and Zotac about warranty stickers

The U.S. Federal Trade Commission sent letters to three computer companies, namely ASRock, Gigabyte, and Zotac, over their warranty policies. According to the agency, these policies violate the Magnuson-Moss Warranty Act, which prohibits companies from putting conditions on their warranties based on the use of a product or service, such as a repair service. Furthermore, the FTC said, “Warranty language that implies to a customer acting reasonably under the circumstances that warranty coverage requires the consumer to purchase an article or service identified by brand, trade, or corporate name is similarly deceptive and prohibited.”

The primary concern of the FTC with these companies is specific language within their warranty policies. For example, ASRock includes the following in their written warranty: “Manufacturer’s warrant will be null and void if products are modified, damaged, or otherwise tampered with, for example, the outer case is opened or additional option parts/components are installed/removed.”

Similar statements are also found on Gigabyte’s and Zotac’s warranties. The former says, “If the manufacturing sticker inside the product was removed or damaged, it would no longer be covered by the warranty.” While the latter indicates, “Warranty claims will be void if the user: … [t]ampers, defaces, or removes any stickers indicating void warranty if broken.”

These policies basically prevent users from opening their devices, as doing so will void the manufacturer’s warranty. Asus was hit with a similar issue earlier this year, when it quoted a $2,750 fee to replace a chipped GPU power connector. While the company released a statement vowing to improve its warranty communication practices, Gamers Nexus proceeded with an in-depth investigation which forced the company to revamp its warranty and service policies.

Today, the FTC is taking notice of issues like these in the tech world. While giant tech companies like Apple and Microsoft have been in the limelight for several years due to their anti-repair practices, these “smaller” but nonetheless important players in the consumer PC hardware industry should be taken into account, too.

The consumer protection agency gave the three companies 30 days to change and update their policies to comply with the warranty law. While the FTC sent the letters to the companies as a warning, they also included the following: " We do not waive the FTC’s right to take law enforcement action and seek appropriate injunctive and monetary remedies against [the companies involved] based on past or future violations.”