The Magnuson - Moss Warranty Act "requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranty coverage.” [1] The Act establishes “three basic requirements that may apply to you, either as a warrantor or a seller.

A. As a warrantor, you must designate, or title, your written warranty as either ‘full’ or ‘limited.’
B. As a warrantor, you must state certain specified information about the coverage of your warranty in a single, clear, and easy-to-read document.
C. As a warrantor or a seller, you must ensure that warranties are available where your warranted consumer products are sold so that consumers can read them before buying.” [1]

Penalties for non-compliance: “The Act allows warranties to include a provision that requires customers to try to resolve warranty disputes by means of the informal dispute resolution mechanism before going to court. … Most Magnuson-Moss lawsuits are brought in state court. However, major cases involving many consumers can be brought in federal court as class action suits under the Act.” [1]

“If a consumer finally prevails … he may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses (including attorneys’ fees based on actual time expended).” [2]

Helpful link(s)/Source(s):
1. http://www.ftc.gov/bcp/edu/pubs/business/adv/bus01.shtm
2. http://www.law.cornell.edu/uscode/15/usc_sec_15_00002310----000-.html

Please note: This is not legal advice and dealers should always seek the assistance of qualified legal counsel.

From "19 Laws, Rules and Regulations That Can Cost You More Than Money" in the September 2010 issue of Auto Dealer Monthly.