New Jersey Introduces Bill to Require Warranty Disclosure

• The Magnuson-Moss Warranty Act regulates warranties for the protection of consumers and provides that vehicle manufacturers may not deny warranty coverage based on the use of an aftermarket part alone.      
   
• In December 2010, the Federal Trade Commission issued an Alert stating that the manufacturer or dealer must show that the aftermarket equipment caused the need for repairs before denying warranty coverage
   
• Consumers are generally unaware of the rights afforded them under the law and many are forced to absorb the costs for repairs that were properly covered under the warranty.  A.B. 2612 would simply provide that consumers be made aware in ten-point boldface type of these basic rights

Overview:  Legislation (A.B. 2612) to require new car dealers to provide purchasers a written statement declaring it is illegal for manufacturers or dealers to void a warranty or deny coverage because aftermarket or recycled parts were installed or because someone other than the dealer performed service was introduced.  The bill will be sent to the Assembly Consumer Affairs Committee for consideration.