Deceptive warranty advertising is unlawful.

The FTC's Guides for the Advertising of Warranties and Guarantees {16 C.FR. Part 239} can advise you on how to advertise your warranty.

Advertisements for products covered by the Pre-Sale Availability Rule need only state that the warranty can be seen where the product is sold. {16 C.F.R. 239.2}.

"Satisfaction" and "Money back" guarantees constitute an offer of a full refund for any reason.{16 C.F.R. §239.3}.

Clarify what you are talking about when you advertise a "lifetime" warranty. {16 C.F.R. §239.4}.

The Magnuson-Moss Warranty Act does not cover the advertising of warranties. However, warranty advertising falls within the scope of the FTC Act, which generally prohibits "unfair or deceptive acts or practices in or affecting commerce." Therefore, it is a violation of the FTC Act to advertise a warranty deceptively.

To help companies understand what the law requires, the FTC has issued guidelines called the Guides for Advertising Warranties and Guarantees. However, the Guides do not cover every aspect of warranty advertising, and cannot substitute for consultation with your lawyer on warranty advertising matters.

The Guides cover three principal topics: how to advertise a warranty that is covered by the Pre-Sale Availability Rule; how to advertise a satisfaction guarantee; and how to advertise a lifetime guarantee or warranty.

How to Advertise Warranties Covered by the Pre-Sale Availability Rule
In general, the Guides advise that if a print or broadcast ad for a consumer product mentions a warranty, and the advertised product is covered by the Pre Sale Availability Rule (that is, the product is sold in stores for more than $15) the ad should inform consumers that a copy of the warranty is available to read prior to sale at the place where the product is sold. Print or broadcast advertisements that mention a warranty on any consumer product that can be purchased through the mail or by telephone should inform consumers how to get a copy of the warranty.

For advertisements of consumer products costing $15 or less, the Guides do not call for the pre-sale availability disclosure. Instead, the Guides advise that the FTC's legal decisions and policy statements are the sole sources of guidance on how to avoid unfairness or deception in advertising warranties. Consult your attorney for assistance in researching and applying the FTC's case decisions and policy statements.

How to Advertise a Satisfaction Guarantee The Guides advise that, regardless of the price of the product, advertising terms such as "satisfaction guaranteed" or "money back guarantee" should be used only if the advertiser is willing to provide full refunds to customers when, for any reason, they return the merchandise.

The Guides further advise that an ad mentioning a satisfaction guarantee or similar offer should inform consumers of any material conditions or limitations on the offer. For example, a restriction on the offer to a specific time period, such as 30 days, is a material condition that should be disclosed.

How to Advertise a Lifetime
Warranty or Guarantee
"Lifetime" warranties or guarantees can be a source of confusion for consumers. This is because it is often difficult to tell just whose life measures the period of coverage. "Lifetime" can be used in at least three ways. For example, a warrantor of an auto muffler may intend his "lifetime" warranty's duration to be for the life of the car on which the muffler is installed. In this case, the muffler warranty would be transferable to subsequent owners of the car and would remain in effect throughout the car's useful life.

Or the warrantor of the muffler might intend a "lifetime" warranty to last as long as the original purchaser of the muffler owns the car on which the muffler is installed. Although commonly used, this is an inaccurate application of the term "lifetime."

Finally, "lifetime" can be used to describe a warranty that lasts as long as the original purchaser of the product lives. This is probably the least common usage of the term.

The Guides advise that to avoid confusing consumers about the duration of a "lifetime" warranty or guarantee, ads should tell consumers which "life" measures the warranty's duration In that way, consumers will know which meaning of the term "lifetime" you intend.