By Tess Stynes
The North American division of Bayerische Motoren Werke AG
agreed to settle accusations that its Mini division misled
consumers about their warranties, the Federal Trade Commission said
Thursday.
The U.S. agency had accused BMW of telling consumers that BMW
would void their warranties unless they used Mini parts and dealers
for maintenance and repairs.
"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,"
Jessica Rich, director of the FTC's Bureau of Consumer Protection,
said in a news release.
The FTC said BMW would change its practices and give Mini owners
information about their rights.
A BMW spokesman wasn't immediately available to comment.
The agreement bars BMW from telling consumers that they must use
Mini dealers or service centers, and it also requires the company
to inform consumers of their right to use third-party parts and
services.
The FTC said the proposed consent agreement will be open to
public comment for a 30-day period through April 20, after which
the commission will decide whether or not to issue the order on a
final basis. Each violation of such a final order could result in
civil penalties of as much as $16,000, the agency said.
Write to Tess Stynes at tess.stynes@wsj.com
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