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DEBUNKING THE WARRANTY MYTH DIRECTLY FROM THE FTC WEBSITE

UNDERSTANDING YOUR HD WARRANTY

 

WILL THE ADDITION OF- OR THE UPGRADE TO MY HARLEY DAVIDSON VOID MY VEHICLE MANUFACTURER'S WARRANTY?

This is one of the most-asked questions among all aftermarket product manufacturing queries.
From the Federal Trade Commission:
"No. An 'aftermarket' part is a part made by a company other than the vehicle manufacturer or the original equipment manufacturer. A 'recycled' part is a part that was made for and installed in a new vehicle by the manufacturer or the original equipment manufacturer, and later removed from the vehicle and made available for resale or reuse. Simply using an aftermarket or recycled part does not void your warranty. The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket or recycled part. Still, if it turns out that the aftermarket or recycled part was itself defective or wasn't installed correctly, and it causes damage to another part that is covered under the warranty, the manufacturer or dealer has the right to deny coverage for that part and charge you for any repairs. The FTC says the manufacturer or dealer must show that the aftermarket or recycled part caused the need for repairs before denying warranty coverage."
Source: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt192.shtm


Be Aware of Add-ons
Motorcycle service contracts and so-called extended warranties are common “add-ons,” optional products and services offered by the dealer in connection with a new or used motorcycle purchase. Often, add-ons like extended warranties and service contracts can cost thousands of dollars and are mentioned only at the end of an already difficult and time-consuming day at the dealership. Other times, dealers may try to include these and other add-ons in your deal without ever discussing them with you, and without your knowledge or approval. So you want to be sure that you ask questions, get answers in writing, know what you are paying for, and what you will get.
How Motorcyle Warranties and Service Contracts Differ
A motorcycle warranty is a contract to fix certain defects or malfunctions for specific amount of time after you buy a motorcycle . A manufacturer’s warranty typically is included in the purchase price when you buy a new motorcycle , but used motorcycles might come with some type of warranty coverage, too.
An motorcycle service contract is a contract to perform (or pay for) certain repairs or services. Service contracts are sometimes called an “extended warranty,” but they’re not a warranty as defined by federal law. They’re sold by motorcycle manufacturers, dealers, and independent companies, you can buy them anytime, and prices and coverage vary widely. For example, some of these contracts may extend the length or coverage of the included warranty, and others may cover some maintenance tasks like scheduled oil changes.
Important Warranty Facts
It’s always a good idea to know what your warranty covers and how long it lasts. But you certainly want to find out before you pay someone who’s trying to sell you a new one.
You don’t have to use the dealer for repairs or maintenance to keep your warranty in effect. In fact, it’s illegal for a dealer to deny your warranty coverage simply because you had routine maintenance or repairs done by someone else. That said, the dealer or manufacturer can make you use select repair facilities if the work is done for free under the warranty.
Using aftermarket or recycled parts won’t void your warranty. But the manufacturer or dealer can make you use certain parts if they’re free of charge under the warranty. 
An aftermarket part is a part made by a company other than your motorcycle’s manufacturer.
A recycled part is a part that was made for, and installed in, a new motorcycle by the manufacturer or the original equipment manufacturer, but later removed and made available for resale or reuse.If someone installs an aftermarket or recycled part that’s defective or wasn’t properly installed, it could damage another part that is covered under the warranty. If that happens, the manufacturer or dealer can deny coverage for that part and charge you for repairs. But, before they can deny warranty coverage, the manufacturer or dealer must first prove the aftermarket or recycled part caused the needed repairs.
Keep all your service records — no matter who does the service. This includes oil changes, tire rotations, belt replacement, new brake pads, and inspections. Create a file to keep track of repairs — it will come in handy if you have to use your warranty. If you ever have a warranty claim and it appears that you didn’t maintain your vehicle, your claim might be denied..

FTC ACTION AGAINST HD & WESTINGHOUSE FOR ILLEGAL RESTRICTION

 

FTC Takes Action Against Harley-Davidson and Westinghouse for Illegally Restricting Customers’ Right to Repair

Agency Orders Require Companies to Fix Warranties, Come Clean with Customers, and Compete Fairly with Independent RepairersJune 23, 2022The Federal Trade Commission took action against motorcycle manufacturer Harley-Davidson Motor Company Group, LLC and Westinghouse outdoor generator maker MWE Investments, LLC for illegally restricting customers’ right to repair their purchased products. The FTC’s complaints charge that the companies’ warranties included terms that conveyed that the warranty is void if customers use independent dealers for parts or repairs. The FTC is ordering Harley-Davidson and Westinghouse to fix warranties by removing illegal terms and recognizing the right to repair, come clean with customers, and ensure that dealers compete fairly with independent third-parties.

“Consumers deserve choices when it comes to repairing their products, and independent dealers deserve a chance to compete,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “These orders require Harley and Westinghouse to fix their warranties, come clean with consumers, and ensure fair competition with independent providers. Other companies that squelch consumers’ right to repair should take notice.”

Wisconsin-based Harley-Davidson sells motorcycles worldwide, and Ohio-based MWE Investments sells Westinghouse-brand outdoor power generators and related equipment. Each company offers limited warranties to consumers who buy their products that provide for no-cost repair or replacement, should the products have defects or other issues. 

The FTC has made it a priority to protect consumers’ right to repair their products. The Magnuson Moss Warranty Act is one of the FTC’s tools to address repair restrictions. It prohibits a company from conditioning a consumer product warranty on the consumer’s using any article or service which is identified by brand name unless it is provided for free. Following the FTC’s right to repair report Nixing the Fix, the Commission issued a Policy Statement on Repair Restrictions Imposed by Manufacturers pledging to ramp up investigations into illegal repair restrictions. 

According to the FTC’s complaints, both companies were imposing illegal warranty terms that voided customers’ warranties if they used anyone other than the companies and their authorized dealers to get parts or repairs for their products. The FTC also alleged that Harley-Davidson failed to fully disclose all the terms of its warranty in a single document, requiring consumers to contact an authorized dealership for full details. The FTC alleges that these terms harm consumers and competition in multiple ways, including:

  • Restricting consumers’ choices: Consumers who buy a product covered by a warranty do so to protect their own interests, not the manufacturer’s. The companies’ warranties improperly implied that as a condition of maintaining warranty coverage, consumers had to use the company’s part or services for any repairs.
  • Costing consumers more money: By telling consumers their warranties will be voided  if they choose third-party parts or repair services, the companies force consumers to use potentially more expensive options provided by the manufacturer. This violates the Warranty Act, which prohibits these clauses unless a manufacturer provides the required parts or services for free under the warranty or is granted an exception from the FTC.
  • Undercutting independent dealers: The Warranty Act’s tying prohibition protects not just consumers, but also independent repairers and the manufacturers of aftermarket parts. By conditioning their warranties on the use of authorized service providers and branded parts, the companies infringed the right of independent repairers and manufacturers to compete on a level playing field.  
  • Reducing resiliency: Consumers rely on the companies’ products for emergency power and transportation. Robust competition from aftermarket part manufacturers is critical to ensuring that consumers get the replacement parts they need when they need them and are not at the mercy of branded part supply chains. More resilient and repairable products also lead to less waste in the form of products that could otherwise be fixed.  

Enforcement Actions

Under the FTC Act and the Warranty Act, the FTC has the authority to take action against companies violating consumer protection laws, including those engaging in unfair or deceptive acts or practices. The FTC’s orders in these cases:

  • Prohibit further violations: The companies will be prohibited from further violations of the Warranty Act, and in Harley-Davidson’s case, the Disclosure Rule. They will also be prohibited from telling consumers that their warranties will be void if they use third-party services or parts, or that they should only use branded parts or authorized service providers. If the companies violate these terms, the FTC will be able to seek civil penalties of up to $46,517 per violation in federal court.
  • Recognize consumers’ right to repair: Both companies will be required to add specific language to their warranties saying, “Taking your product to be serviced by a repair shop that is not affiliated with or an authorized dealer of [Company] will not void this warranty. Also, using third-party parts will not void this warranty.”
  • Come clean with consumers: Both companiesmust send and post notices informing customers that their warranties will remain in effect even if they buy aftermarket parts or patronize independent repairers.
  • Alert dealers to compete fairly: Both companies are being required to direct authorized dealers to remove deceptive display materials, train and monitor employees, and not promote branded parts and dealers over third parties.

Your Warranty Rights

FTC Takes Action Against Harley-Davidson and Westinghouse for Illegally Restricting Customers’ Right to Repair

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