Defective Products

Magnuson Moss Warranty Act

The Magnuson-Moss Warranty Act (MMWA), a piece of legislation passed by Congress in 1975, regulates the warranties of consumer merchandise. It requires manufacturers and vendors of these items to supply consumers with a comprehensive report of product warranty coverage. The act also has an impact on consumer rights and the responsibilities of the warrantor in accordance with a written contract.

To fully comprehend the MMWA, one must understand why Congress chose to pass it. First, Congress intended to make sure all consumers have access to each and every fact concerning warranty terms and conditions. By offering consumers a means to become informed of a product's warranty prior to a purchase, the MMWA enlightens them about what steps to take in the event the product is defective, malfunctions, or breaks. Consequently, customer satisfaction is positively impacted.

Second, Congress wanted to make certain that consumers had the chance to evaluate one warranty against another before a sale is made. Allowing consumers to make a comparison gives them the opportunity to select a product with the best blend of price, specs, and warranty coverage to suit their personal needs.

Third, Congress hoped to encourage competition among those companies that service consumers with warranties. By enabling consumers to access warranty information, the MMWA promotes increased product marketing on the basis of warranty coverage as well as competition between companies to satisfy consumer expectations through a variety of warranty options.

Last, Congress wanted to heighten motivation among companies to execute warranty duties in a prompt and exceptional manner by providing them with improved incentives. In order to be eligible for these incentives, companies are also asked to resolve disagreements at minimal cost to the customer and as timely as possible. In the end, the MMWA makes it a much simpler process for consumers to pursue compensation for damages caused by breach of warranty. Furthermore, it lays down the groundwork for companies to establish systems to settle disputes at lower costs without reaching the trial stage.