News: Consolidator Report
In a letter to Chairman Jon D. Leibowitz, the Automotive Recyclers Association (ARA) again called on the U.S. Federal Trade Commission (FTC) to investigate possible violations of the Magnuson-Moss Act by automotive manufacturers.
“Tying warranties to the use of new, authorized replacement parts is illegal under the Magnuson-Moss Act," said Michael E. Wilson, ARA CEO. "Automakers’ unfounded disparagement of recycled original equipment manufactured (OEM) parts is also a potential violation of the Lanham Act.”
ARA is taking aim at position statements released by OEMs recommending against the use of aftermarket or recycled parts in some repair circumstances. Late last year, ARA says Chrysler released a position statement implying that recycled parts may have invisible defects due to environmental and human error factors. The company stated that, “Chrysler Group LLC does not approve of or recognize structural repair procedures where Authentic Mopar Parts are not used for Chrysler, Jeep, Dodge and Ram vehicles,” suggesting that consumers’ warranties would be in doubt if parts other than Authentic Mopar Parts were used, ARA says. Similar statements have been released by American Honda, Toyota Motor Sales and Hyundai Motor America, ARA claims.
In its letter, the ARA asked the FTC chairman for additional action since the FTC’s December 2010 consumer alert “Auto Warranties, Routine Maintenance, and Repairs: Is Using the Dealer a Must?” did not specifically consider the issue of recycled OEM parts.
"These potential violations of federal law that harm consumers, especially those least likely to be able to afford expensive replacement parts, need to be completely examined," said Wilson.
Over the past several months, ARA says it has reached out to the appropriate federal agencies highlighting activity that could be a violation of the Magnuson Moss Act and has yet to receive a satisfactory response from the federal government.
Automotive Recyclers Association
FTC Issues Warranty Rights Consumer Alert in Response to Complaints about OEM Position Statements
Automotive Recyclers Association Blasts Toyota Position Statement on Recycled Parts
ARA Files Complaint with FTC Against Honda, Hyundai Over Statements on Recycled Parts