Trade Associations Insist That FTC Take Action Against Kia - aftermarketNews

Trade Associations Insist That FTC Take Action Against Kia

The bulletin, which was referenced in an article posted by Consumer Reports, recommended that car owners either go back to the authorized dealer or use a Kia oil filter to avoid problems with oil- and filter-related warranty claims.

BETHESDA, Md. – The Auto Care Association, Automotive Oil Change Association, Service Station Dealers of America and Tire Industry Association have joined forces to call on the Federal Trade Commission (FTC) to take immediate action to have Kia withdraw a technical bulletin warning consumers not to use non-OEM filters, which the associations claim is a violation of the Magnuson-Moss Warranty Act (MMWA).
 
The bulletin, which was referenced in an article posted by Consumer Reports, recommended that car owners either go back to the authorized dealer or use a Kia oil filter to avoid problems with oil- and filter-related warranty claims.
 
Two years ago, the four associations submitted a complaint to the FTC regarding a technical service bulletin from Kia that authorizes dealers to deny warranty coverage simply based on the use of an aftermarket filter without any determination that the filter actually caused the problem with the vehicle. The letter pointed out the fact that this practice is a violation of the MMWA. Specifically, the letter stated:
 
The MMWA manufacturer’s burden of proof is not that it need merely show an aftermarket part “relates” to damage, but that it “caused” any alleged damage. As the FTC states in its consumer alert: “The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket or recycled part.” The alert goes on to say that if there is a problem with use of an aftermarket part or how it was installed, the manufacturer or dealer may deny a warranty claim. However, the manufacturer must first “show that the aftermarket or recycled part caused the need for repairs before denying warranty coverage.” Kia’s directives circumvent this process entirely: the mere presence of an aftermarket oil filter automatically voids warranty coverage for the oil change parts and services as well as any damage Kia says “relates” to oil filter function.
 
The May 27, 2014 letter to the FTC states, “Despite the complaint, the FTC has yet to do anything to enforce the MMWA requirements with Kia. Now, Consumer Reports (CR) is further promoting the Kia technical bulletin in an article that has been seen on the Yahoo’s front page, as well as other locations. If there was any doubt about how the technical bulletin is being interpreted by consumers, one only needs to read the recommendations from CR for motorists with Kia vehicles under warranty.”
 
The Consumer Reports article states:
 
1. When dropping your car off for service, make sure you don’t authorize the dealer to perform repairs without speaking with you first. This way you won’t get a surprise bill for an oil and filter change.
2. If your Kia is still under the powertrain warranty, considering taking it to the dealer for oil changes. Yes, it probably costs more than the quick-lube store, but you’ll avoid any potential problems with oil- and filter-related warranty claims.
3. Consider buying Kia-approved oil filters and either using them when you do your own oil changes, or have your mechanic or quick-lube store use the Kia filter and not their own.
 
The letter to the FTC also states, “Note that CR is specifically recommending that car owners either go back to the authorized dealer or use a Kia oil filter in direct contravention of the consumer options codified in MMWA. To arrive at that recommendation, the report perpetuates Kia’s sleight of hand regarding the manufacturer’s burden of proof. In Kia’s world, and now CR’s as well, it is the consumer who must prove that an aftermarket filter didn’t cause engine damage, which is exceptionally handy for Kia given their failure to establish a technical basis for their proprietary filter mandate.”
 
“The main loser of course is the consumer who, as the CR article states, must now pay more for an oil change. While CR clearly should have done more to research this issue before publishing the article, the fact remains that the FTC failed to undertake its responsibilities under the law and take action to halt Kia’s anticompetitive and anti-consumer actions. The absence of action by the Commission is now cascading, as evidenced by the CR posting, into additional misinformation to consumers and subsequently more harm to Kia owners and to those who service and supply parts for Kia vehicles.”
 
 
 

You May Also Like

Auto Care Voices Support for FTC, DOJ Comments on Right to Repair

The agencies asserted that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair and maintenance services.

bill hanvey right to repair

The Auto Care Association is voicing its support for recent comments from the Federal Trade Commission and Department of Justice advocating for regulations that would allow consumers and businesses to repair their own products.

In their comment to the U.S. Copyright Office, the Federal Trade Commission and the Justice Department’s Antitrust Division asserted that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair and maintenance services, as well as facilitate competition in markets for repairable products.

BendPak Launches Fusion ‘All-in-One’ Portal for Dealers

The new portal streamlines product research, ordering and marketing, and offers up-to-the-minute product availability and pricing.

Vehlo Acquires Shop Management Software, Shop-Ware

Shop-Ware is a cloud-based shop management platform catering to independent automotive aftermarket repair shops.

Vehlo Acquires Shop Management Software, Shop-Ware
Valvoline Celebrates Female Service Center Employees

Valvoline is launching a social media campaign led by its female experts who are sharing automotive preventive maintenance tips to promote accessible vehicle care for all.

TechForce Announces Winners of Techs Rock Awards

Misael Rodriguez and Dustin Thomas are the grand-prize winners.

Techs Rock Awards

Other Posts

ISN Expands Freedom Program for Mobile Tool Dealers

ISN’s Freedom Program is designed to provide experienced, successful mobile tool dealers with support to become an independent mobile dealer and expand their growth.

Freedom Program
Franchise Times Recognizes Take 5 Oil Change

Take 5 was recognized as the winner in the “Road Warriors” category of the Zor Awards.

Sun Auto Continues Growth in Houston

The winner of a Ford Bronco Sport giveaway was named as part of Sun Auto’s plans to invest in the community and show appreciation to its customers.

Sun Auto Continues Growth in Houston
Spark Car Wash Opens Fifth Location in Northeast

The new location “represents a milestone in Spark’s expansion and key progress toward its mission to modernize car washing with cutting-edge clean technology and membership-driven services in the Northeast region.”

Spark Car Wash