Recyclers Petition FTC Over Car Dealer Warranty Claims

by | Oct 31, 2011

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Trade body the Automotive Recyclers Association has filed comments with the Federal Trade Commission asking the agency to keep a close eye on potentially unfair language used by auto parts dealers regarding the use of recycled vehicle parts and their impact on car warranties, according to

As the recession has hit, and their market share has shrunk, ARA claims that automobile manufacturers have issued an increasing number of statements suggesting that recycled parts are inferior to their new counterparts and that their use can void warranties, reports.

This, ARA says, could be inconsistent with the Magnuson-Moss Warranty Act that covers such issues. The trade body says that large numbers of its members rely on the FTC to combat such practices.

ARA raised such concerns with the FTC earlier in the year. The FTC responded to the trade body’s concerns in July, affirming the use of recycled parts in warranty repairs.

In 2009, the trade body raised concerns that the government’s highly popular “Cash for Clunkers” car trade-in program would severely limit its members’ supply of two major replacement parts — the engine and drive train.

The group said that the reuse of automobile parts prior to their ultimate destruction is preferable to just recycling the metal as scrap.

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