Report: BMW Required Mini Owners To Service Vehicles At Franchise Dealerships
The FTC has filed its final consent order against BMW after the automaker told its Mini customers that the only way to keep their warranty in tact was to use Mini dealers and Mini factory parts.
The FTC has closed its comment period and filed its final consent order against BMW. The complaint on the part of the FTC against BMW is that the automaker’s Mini division told consumers their warranties would be void if they didn’t use both Mini parts and Mini dealerships for repair and maintenance on their vehicle. The allegation is BMW was in violation of the Magnuson-Moss Warranty Act when they required customers to use a certain part or service center to repair their vehicle, unless the service is free.
In an Federal Trade Commission press release on this subject dated March 19, Jessica Rich, Director of the FTC Bureau of Consumer Protection said, “It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car. As a result of this order, BMW will change its practices and give Mini owners information about their rights.â€
The FTC reports that their consent order against BMW is good for 20 years. The consent order also, “bars BMW, regarding the sale of any Mini Division good or service, from representing that, to ensure a vehicle’s safe operation or maintain its value, owners must have routine maintenance done only by Mini dealers or Mini centers.” The FTC consent order also requires BMW to notify Mini owners of their rights as they relate to using third party service centers and parts on their vehicles without violating the automaker warranty. BMW may require dealer-only service, but it must be done at no cost to the consumer.
What is your take on this action by the Federal Trade Commission? Do you agree with the ruling? Did the alleged actions on the part of BMW merit the action the FTC took against them?
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Wow, I didn’t think that BMW/Mini would be that far out of the loop. Other dealers and manufacturers have know about this for years and the worst thing they could ever say about getting something serviced elsewhere is that you’ll have to keep your documentation and that we can’t warranty non-factory parts or any related damage that may be caused by those parts.
Sounds like they’ve been drinking the same Kool-Aid as VW. Thinking they can ignore laws and do only what is best for their company at the time.
NOW they have to expressly tell their customers that they have options, when other manufacturers can focus on why you should want to bring all your repairs back to them. NOW they look like a company that overcharges for their repairs!