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Federal Trade Commission Affirms Use of Recycled Automotive Parts in Warranty Repairs

FOR IMMEDIATE RELEASE

CONTACT: Elizabeth Vermette
(571) 208-0428 Date: July 25, 2011

MANASSAS, VA - In a letter to ARA Chief Executive Officer (CEO) Michael Wilson, the Federal Trade Commission (FTC) this week affirmed the use of recycled automotive parts in warranty repairs. In the letter, the FTC says: "Warrantors may not claim that a warranty is void simply because a consumer has used an authorized or recycled part."

“Tying warranties to the use of new, authorized replacement parts is illegal under the Magnuson-Moss Act," said Wilson. "Several months ago we asked the FTC to review position statements by several automobile manufacturers that implied that recycled parts are lesser quality parts than new OEM parts and that there use could void a manufacturer warranty," said Wilson.

ARA raised concerns with the FTC that the position statements of the automobile manufacturers might mislead consumers into thinking that using recycled parts in a repair could void their warranty. As a result, the FTC announced the update of a consumer alert entitled Auto Warranties, Routine Maintenance, and Repairs: Is Using the Dealer a Must? The revised alert specifically notes that the mere use of recycled parts does not void a warranty and that it is illegal for warrantors to void a warranty or deny coverage simply because a recycled part was used. An updated version of the alert can be found here.

Since 1943, the Automotive Recyclers Association (“ARA”) represents an industry dedicated to the efficient removal and reuse of “green” automotive parts, and the proper recycling of inoperable motor vehicles. ARA represents the interests of over 4,500 auto recycling facilities in the United States and fourteen other countries around the world. With programs such as the Certified Auto-motive Recycler Program (CAR) and other partnerships, ARA members continue to provide consumers with quality, low-cost alternatives for vehicle replacement parts, while preserving our environment for a “greener” tomorrow.

To learn more about the Association, visit ARA’s Home Page at www.a-r-a.org or call (571) 208-0428.
 

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