4-24-13
March 25, 2015

U.S. Senator Blumenthal Calls FTC Settlement with BMW Wake-Up Call for Auto Manufacturers

In a statement release following the announcement that the Federal Trade Commission (FTC) ruled that BMW violated the Magnuson-Moss Warranty Act (MMWA), U.S. Senator Richard Blumenthal called it a wake-up call for all car manufacturers.

According to Blumenthal, “BMW’s settlement with the FTC today should be a wake-up call to all car manufacturers that they can no longer get away with deceiving consumers into believing that their warranties will be voided if they do service or repair work at local shops. For too long, many auto manufacturers have misled customers with false information that bolsters their company’s bottom line. The FTC’s settlement with BMW is a critical step in ending this far-too common, shameful violation of consumer rights.”

Last October, Senator Blumenthal sent a letter to FTC Chairwoman Edith Ramirez urging the Commission to take action to protect consumers against the explicit and de facto warrantor tying practices in the auto service and repair industry and ensure auto companies are adhering to regulations under the Magnuson-Moss Warranty Act.

In February, Blumenthal also wrote a letter calling on the Department of Justice to investigate insurance company claim practices.

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