Warranty Void If Removed watermark stamp.

You’ve seen the stickers that say “Warranty: Void If Removed.” They’re especially common on computers, Xboxes, and other consumer electronics. You may also have heard the recent news that the Federal Trade Commission (FTC) has declared these warning stickers illegal. What impact does this have on the food and beverage processing and packaging industry?

The short answer is: “not much.” Here’s a quick Q&A on the Magnuson-Moss Warranty Act (MMWA) for equipment manufacturers.

Note: This article does not constitute legal advice. It’s the responsibility of companies to understand their legal obligations and seek guidance from competent counsel when in doubt.

What is the MMWA?

The MMWA is the federal law governing warranties on consumer products. The main purpose of the law is to ensure that consumers have access to complete information about warranty terms and conditions so they can make better purchasing decisions.

Does the MMWA apply to industrial equipment?

The MMWA covers only warranties on consumer products. This means that only warranties on tangible property normally used for personal, family, or household purposes are covered. (This includes property attached to or installed on real property.) The MMWA does not apply to warranties on products sold for resale or for commercial purposes.

For more information, explore this resource from the FTC: Businessperson’s Guide to Federal Warranty Law