All new cars in the U.S. come with a warranty that covers repairs for a certain period of time and a certain number of miles, for example. B 3 years and 36,000 miles. An extended warranty offers similar coverage beyond these time or kilometer limits. Legally, only the original manufacturer can “extend” a warranty. Other providers often use the term “extended warranty” to refer to similar products, when they should technically be considered as transport service contracts and not as “guarantees”. The MMWA also limits the ability of a supplier to refuse an implied warranty for the underlying product if the supplier enters into a service contract with the consumer within 90 days of the date of sale of the underlying product.28 An extended warranty is coverage for electrical or mechanical failures. In the consumer electronics sector in retail, extended warranties cost between 20% and 30% of the price and give distributors up to 15% commission for some retailers.   The purchase of an extended warranty can be confusing. Failure to take into account the car warranty conditions used in the automotive industry does not make things any easier. My auto warranty glossary below helps you understand this information. To understand how the MMWA tackles extended warranties, unlike national legislation on service contracts, one must first consider two of the most important terms defined in the MMWA: “written warranty” and “service contract”. Under the MMWA, a “written warranty” means that if you believe you have been the victim of auto warranty fraud, you file a complaint with the FTC.
While the FTC does not intervene in individual disputes, the information you provide may indicate a pattern of potential infringements requiring Commission intervention. . . .