| REQUIREMENT
III: THE PRE-SALE AVAILABILITY RULE {16 C.F.R. PART 702}.
Written warranties must be
available for customers to read before buying. As explained on page 5, this requirement
applies to warranties on products costing more than $15.
You can display
warranties any way you choose, or post signs and have the warranties ready to give
customers when they ask to see them.
Mail Order and
Door-to-Door companies have different modes of compliance from in-store retailers.
Manufacturers must
provide warranty materials to their retailers. |
|
Making
Warranties Available Prior to Sale
The FTC's
Rule on Pre-Sale Availability of Written Warranty Terms requires that written warranties
on consumer products costing more than $15 be available to consumers before they buy. The
Rule has provisions that specify what retailers, including mail order, catalog, and
door-to-door sellers, must do to accomplish this. The Rule also specifies what
manufacturers must do so that sellers can meet their obligations under the Rule. These
provisions are explained in this section.
What Retailers Must Do
If you sell directly to consumers who come to your place of
business to buy, you must make written warranties available at the point of sale. You must
do this with all written warranties on the products you sell warranties from
manufacturers, as well as any written warranties you extend.
The Pre-Sale Availability Rule requires that
sellers make warranties readily available to prospective buyers either by displaying them
in close proximity to the warranted products, or by furnishing them upon request prior to
sale and posting prominent signs to let customers know that warranties can be
examined upon request. The Rule does not specify any particular method for fulfilling its
requirements. For example, an appliance retailer might post a refrigerator warranty on the
front of the appliance, or in the freezer compartment. Or, a retailer of small products,
such as watches or electric razors, might keep the warranties readily available behind the
counter, or keep them indexed in a binder near the warranted products, and post signs
stating their availability. Any of these methods is acceptable.
What Mail Order Companies Must Do
If you accept orders for warranted consumer products through the mail or by telephone,
your catalog or other advertising must include either the warranty or a statement telling
consumers how to get a copy. This information should be near the product description or
clearly noted on a separate page. If you choose the latter, you must provide a page
reference to the warranty statement near the product description.
What Door-to Door Sales
Companies Must Do
If you sell warranted products to consumers in their homes,
or in some place other than your place of business, you must offer the customer copies of
the written warranties before the sale is completed.
What Manufacturers Must Do
If you are a manufacturer and offer written warranties, you
must provide retailers of your product with the warranty materials they will need to meet
their requirements as described above. There are any number of ways to do this, including:
providing copies of the warranty to be placed in a binder; providing warranty stickers,
tags, signs, or posters; or printing the warranty on your product's packaging. As long as
you have provided retailers with the warranty materials they need to comply with the rule,
you are not legally responsible if they fail to make your warranties available.
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