PART 239 -- GUIDES FOR THE ADVERTISING OF WARRANTIES AND GUARAN-

TEES

Sec.

239.1 Purpose and scope of the guides.

239.2 Disclosures in warranty or guarantee advertising.

239.3 "Satisfaction Guarantees" and similar representation in

advertising; disclosure in advertising that mentions "satis-

faction guarantees" or similar representations.

239.4 "Lifetime" and similar representations.

239.5 Performance of warranties or guarantees.

AUTHORITY: Secs. 5, 6, 38 Stat. 719 as amended, 721; 15

U.S.C. 45, 46.

SOURCE: 50 FR 18470, May 1, 1985, unless otherwise noted.

239.1 Purpose and scope of the guides.

The Guides for the Advertising of Warranties and Guarantees

are intended to help advertisers avoid unfair or deceptive prac-

tices in the advertising of warranties or guarantees. The Guides

are based upon Commission cases, and reflect changes in circum-

stances brought about by the Magnuson-Moss Warranty Act (15

U.S.C. 2301 et seq.) and the FTC Rules promulgated pursuant to

the Act (16 CFR Parts 701 and 702). The Guides do not purport to

anticipate all possible unfair or deceptive acts or practices in

the advertising of warranties or guarantees and the Guides should

not be interpreted to limit the commission's authority to proceed

against such acts or practices under section 5 of the Federal

Trade Commission Act. The Commission may bring an action under

section 5 against any advertiser who misrepresents the product or

service offered, who misrepresents the terms or conditions of the

warranty offered, or who employs other deceptive or unfair means.

Section 239.2 of the Guides applies only to advertisements

for written warranties on consumer products, as "written warran-

ty" and "consumer product" are defined in the Magnuson-Moss

Warranty Act, 15 U.S.C. 2301, that are covered by the Rule on

Pre-Sale Availability or Written Warranty Terms, 16 CFR Part 702.

The other sections of the Guides apply to the advertising of any

warranty or guarantee.

(50 FR 18470, May 1, 1985; 50 FR 20899, May 21, 1985)

239.2 Disclosures in warranty or guarantee advertising.

(a) If an advertisement mentions a warranty or guarantee

that is offered on the advertised product, the advertisement

should disclose, with such clarity ad prominence as will be

noticed and understood by prospective purchasers, that prior to

sale, at the place where the product is sold, prospective pur-

chasers can see the written warranty or guarantee for complete

details of the warranty coverage.

Examples: The following are examples of disclosures suffi-

cient to convey to prospective purchasers that, prior to sale, at

the place where the product is sold, they can see the written

warranty or guarantee for complete details of the warranty cover-

age. These examples are for both print and broadcast advertis-

ing. These examples are illustrative, not exhaustive. In each

example, the portion of the advertisement that mentions the

warranty or guarantee is in regular type and the disclosure is in

italics.

A. "The XYZ washing machine is backed by our limited 1 year

warranty. For complete details, see our warranty at a dealer

near you."

B. "The XYZ bicycle is warranted for 5 years. Some restric-

tions may apply. See a copy of our warranty wherever XYZ

products are sold."

C. "We offer the best guarantee in the business. Read the

details and compare wherever our fine products are sold."

D. "See our full 2 year warranty at the store nearest you."

E. "Don't take our word -- take our warranty. See our limited

2 year warranty where you shop."

(b) If an advertisement in any catalog, or in any other

solicitation for mail order sales or for telephone order sales

mentions a warranty or guarantee that is offered on the adver-

tised product, the advertisement should disclose, with such

clarity and prominence as will be noticed and understood by

prospective purchasers, that prospective purchasers can obtain

complete details of the written warranty or guarantee free from

the seller upon specific written request or from the catalog or

other solicitation (whichever is applicable).

Examples: The following are examples of disclosures suffi-

cient to convey to consumers how they can obtain complete details

of the written warranty or guarantee prior to placing a mail or

telephone order. These examples are illustrative, not exhaus-

tive. In each example, the portion of the advertisement that

mentions the warranty or guarantee is in regular typeface and the

disclosure is in italics.

A. "ABC quality cutlery is backed by our 10 year warranty.

Write to us for a free copy at (address)."

B. "ABC power tools are guarantees. Read about our limited 90

day warranty in this catalog."

C. "Write to us for a free copy of our full warranty. You'll

be impressed how we stand behind our product."

[50 FR 20899, May 21, 1985]

239.3 "Satisfaction Guarantees" and similar representations in

advertising; disclosure in advertising that mentions "satisfac-

tion guarantees" or similar representations.

(a) A seller or manufacturer should use the terms "Satisfac-

tion Guarantee," "Money Back Guarantee," "Free Trial Offer," or

similar representation in advertising only if the seller or

manufacturer, as the case may be, refunds the full purchase price

of the advertised product at the purchaser's request.

(b) An advertisement that mentions a "Satisfaction Guaran-

tee" or a similar representation should disclose, with such

clarity and prominence as will be noticed and understood by

prospective purchasers, any material limitations or conditions

that apply to the "Satisfaction Guarantee" or similar representa-

tion.

Examples: These examples are for both print and broadcast

advertising. These examples are illustrative, not exhaustive.

Example A: (In an advertisement mentioning a satisfaction

guarantee that is conditioned upon return of the unused portion

within 30 days) "We guarantee your satisfaction. If not com-

pletely satisfied with Acme Spot Remover, return the unused

portion within 30 days for a full refund."

Example B: (In an advertisement mentioning a money back

guarantee that is conditioned upon return of the product in its

original packaging) "Money Back Guarantee! Just return the ABC

watch in its original package and ABC will fully refund your

money."

239.4 "Lifetime" and similar representations.

If an advertisement uses "lifetime," "life," or similar

representations to describe the duration of a warranty or guaran-

tee, then the advertisement should disclose, with such clarity

and prominence as will be noticed and understood by prospective

purchasers, the life to which the representation refers.

Examples: These examples are for both print and broadcast

advertising. These examples are illustrative, not exhaustive.

Example A: (In an advertisement mentioning a lifetime

guarantee on an automobile muffler where the duration of the

guarantee is measured by the life of the car in which it is

installed) "Our lifetime guarantee on the Whisper Muffler

protects you for as long as your car runs -- even if you sell it,

trade it, or give it away!"

Example B: (In an advertisement mentioning a lifetime

guarantee on a battery where the duration of the warranty is for

as long as the original purchaser owns the car in which it was

installed) "Our battery is backed by our lifetime guarantee.

Good for as long as you own the car!"

239.5 Performance of warranties or guarantees.

A seller or manufacturer should advertise that a product is

warranted or guaranteed only if the seller or manufacturer, as

the case may be, promptly and fully performs its obligations

under the warranty or guarantee.