The US Federal Trade Commission's request for comment on consumer product warranty legislation has been met with a forthright response from the lubes industry.
The federal legislator had asked for opinions surrounding the Magnuson-Moss Warranty Act in August this year. The Act effectively limits automakers and other OEMs from tying consumers to own-brand aftermarket products through warranty conditions.
The response, according to Lube Report's George Gill, was unequivocal from the lubricants industry. Goaded into action by GM's launch of its Dexos™ motor oil standard, the industry has been lobbying the FTC for more than a year to clarify the position over the warranty law. A number of US lubricant and fast fit trade associations set up the Uniform Standards in Automotive Products Coalition to respond to the FTC.
In essence, their position is to ensure that the wording of the Act is clarified to prevent warranty wording implying that branded products or services are required to maintain warranty coverage. Currently the Act is only explicit in prohibiting direct, explicit statements of brand ties.
Although GM is not the first manufacturer to link product specifications to warranties, the Dexos debate has been, arguably, the most significant. Separate comments to the FTC from companies such as BP, Ashland and ILMA have made it clear to the FTC that the clarification of the Act's wording is essential, as is the need for clear eduction of consumers regarding their rights under the Act and the prevention of misleading language relating to performance levels of branded products.
Unsurprisingly, the American Petroleum Institute (API which is primarily responsible for setting lubes and fuel specifications in the US and worldwide, stated that any change in the Act should reflect the consumer benefits of its existing licencing and certification programme.
The industry now awaits the FTCs next move with interest.