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BMW Settles FTC Charges That It Required Consumers To Use Specific Parts, Service Centers Or Lose Warranties – Consumerist
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Apparently, a division of BMW didn’t follow that rule and now must change its practices to resolve charges from federal regulators. <span id="more-10199248"></span></p> <p><a href="https://www.ftc.gov/news-events/press-releases/2015/03/bmw-settles-ftc-charges-its-mini-division-illegally-conditioned" target="_blank">The Federal Trade Commission announced</a> this week that BMW agreed to settle charges that its Mini division – which handles all Mini Cooper sales – violated provisions of the Magnuson-Moss Warranty Act by telling vehicle owners that the company would void their warranties unless they used Mini dealers and parts for repairs.</p> <p>According to the FTC settlement [<a href="https://www.ftc.gov/system/files/documents/cases/150319bmwagree.pdf" target="_blank">PDF</a>], BMW told owners that in order to maintain a vehicle’s safe operation and value they must “have routine maintenance performed only by Mini dealers unless the representation is true and BMW can substantiate it with reliable scientific evidence.”</p> <p>In order to resolve the charges, BMW must provide affected BMW Mini owners with information about their right to use third-party parts and service without voiding warranty coverage, unless the manufacturer offers the parts and services free of charge.</p> <p>Additionally, the company is barred from representing that, to ensure a vehicle’s safe operation or maintain its value, owners must have routine maintenance performed only by Mini dealers or Mini centers, unless the representation is true and BMW can substantiate it with reliable scientific evidence.</p> <p>A spokesperson for BMW <a href="http://www.detroitnews.com/story/business/autos/foreign/2015/03/19/bmw-mini/25019553/" target="_blank">tells The Detroit News</a> that the company did not agree with the FTC’s claims but settled for the best interest of consumers. </p> <p><a href="https://www.ftc.gov/news-events/press-releases/2015/03/bmw-settles-ftc-charges-its-mini-division-illegally-conditioned" target="_blank">BMW Settles FTC Charges that Its MINI Division Illegally Conditioned Warranty Coverage on Use of Its Parts and Service </a>[Federal Trade Commission]</p> <blockquote><p>Want more consumer news? Visit our parent organization,<strong> <a href="https://www.consumerreports.org/cro/index.htm" target="_blank" target="_blank">Consumer Reports</a></strong>, for the latest on scams, recalls, and other consumer issues.</p></blockquote> <footer class="lf-post-footer"> <div class="lf-post-meta"> <p><span class="lf-post-footer--dates">3.20.15</span>By <span class="author vcard"><span class="fn"><a href="../../../../author/ashleekielerconsumerist/index.html" title="Posts by Ashlee Kieler" class="author url fn" rel="author">Ashlee Kieler</a><a href="https://twitter.com/akieler" title="akieler" class="twitter"><i class="fa fa-twitter"></i>@akieler</a></span></span></p><p class="lf-post-tags"><a href="../../../../tag/changing-practices/index.html" rel="tag">Changing Practices</a> <a href="../../../../tag/bmw-2/index.html" rel="tag">bmw</a> <a href="../../../../tag/mini-division/index.html" rel="tag">MINI Division</a> <a href="../../../../tag/federal-trade-commission/index.html" rel="tag">federal trade commission</a> <a href="../../../../tag/warranties/index.html" rel="tag">warranties</a> <a href="../../../../tag/service/index.html" rel="tag">service</a></p> </div> </footer> </div> </article><!-- .lf-post --> <div class="wpcom-related-posts widget widget_related_posts" id="wpcom-related-posts-10199248"> <div class="widget-wrap cs-related clearfix"> <h3>Related</h3> <ul> <li> <a href="../../../../tag/your-day-in-court/index.html" class="cs-tag" rel="tag"> your day in court </a> <a href="../../../05/26/ftc-affirms-consumers-right-to-go-to-court-over-warranty-disputes/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2015/05/courthouseduck.png%3Fw=360&);"></div> <span class="cs-related-title">FTC Affirms Consumers’ Right To Go To Court Over Warranty Disputes</span> </a> </li> <li> <a href="../../../../tag/another-day-another-nhtsa-fine/index.html" class="cs-tag" rel="tag"> Another Day Another NHTSA Fine </a> <a href="../../../12/21/bmw-to-pay-40m-for-failing-to-recall-mini-coopers-in-a-timely-manner/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2015/03/bmw1.png);"></div> <span class="cs-related-title">BMW To Pay $40M For Failing To Recall Mini Coopers In A Timely Manner</span> </a> </li> <li> <a href="../../../../tag/unobtainable-deals/index.html" class="cs-tag" rel="tag"> unobtainable deals </a> <a href="../../../06/30/hyundai-nissan-dealerships-in-las-vegas-settle-deceptive-advertising-complaints/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2015/06/screen-shot-2015-06-30-at-10-59-47-am.png%3Fw=360&);"></div> <span class="cs-related-title">Hyundai, Nissan Dealerships In Las Vegas Settle Deceptive Advertising Complaints</span> </a> </li> <li> <a href="../../../../tag/closing-a-chapter/index.html" class="cs-tag" rel="tag"> closing a chapter </a> <a href="../../../../2017/05/18/toyota-subaru-mazda-bmw-to-pay-553m-to-owners-of-vehicles-with-potentially-lethal-takata-airbags/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2016/03/airbag.jpg%3Fw=360&);"></div> <span class="cs-related-title">Toyota, Subaru, Mazda, BMW To Pay $553M To Owners Of Vehicles With Potentially Lethal Takata Airbags</span> </a> </li> <li> <a href="../../../../tag/cost-of-an-education/index.html" class="cs-tag" rel="tag"> cost of an education </a> <a href="../../../05/26/for-profit-educator-ashworth-college-settles-ftc-charges-it-misrepresented-career-opportunities-transfer-credits/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2015/05/ashworth.png%3Fw=360&);"></div> <span class="cs-related-title">For-Profit Educator Ashworth College Settles FTC Charges It Misrepresented Career Opportunities, Transfer Credits</span> </a> </li> </ul></div></div><div class="navigation next-previous-post"> <div class="alignleft"> <a href="../lawsuit-claims-several-brands-of-wine-contain-very-high-levels-of-arsenic/index.html"> <span class="pagination-previous-label">Previous </span> Lawsuit Claims Several Brands Of Wine Contain “Very High” Levels Of Arsenic </a> </div> <div class="alignright"> <a href="../5-food-prep-tips-for-reducing-pesticide-risks/index.html"> <span class="pagination-next-label">Next </span> 5 Food Prep Tips For Reducing Pesticide Risks </a> </div> </div><div class="after-post-ad"><div id="text-5" class="widget widget_text"><div class="widget-wrap"> <div class="textwidget"></div> </div></div> </div><!-- end .after-post-ad --></div></div><script type='text/javascript'> var _gaq = _gaq || []; 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