From BodyShop Business
The Automotive Recyclers Association (ARA) announced on Oct. 21 that it filed a formal complaint with the Federal Trade Commission (FTC) against Hyundai Motor America and American Honda over the carmakers’ comments regarding the use of recycled auto parts.
In Hyundai’s statement last August, the automaker said that using “aftermarket, imitation or recycled collision repair parts” could compromise a vehicle’s performance in a crash.
Honda went farther in its statement, saying that its new vehicle warranty and replacement parts warranty “doesn’t apply to any part which is not purchased from an authorized U.S. Honda dealer.” As a result of that statement, the Automotive Aftermarket Industry Association (AAIA) filed a formal complaint with the FTC against the automaker for violating the Magnuson-Moss Act.
The ARA letter to the FTC supports AAIA’s contention that the carmaker’s threat of warranty refusals could be in violation of the Magnuson-Moss Act.
The Magnuson-Moss Act prohibits companies from conditioning consumer warranties on the use of non-original equipment parts.
