BMW AG on Thursday agreed to settle charges from the Federal Trade Commission that its Mini division violated the law by telling owners that the company would void their warranty unless they used Mini dealers and parts to perform repairs and maintenance.The FTC said BMW violated a 1975 federal law that bars companies from requiring that consumers – in order to maintain their warranties – use specific brands of parts or specified service centers — unless the part or service is provided to the consumer without charge.
“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,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “As a result of this order, BMW will change its practices and give MINI owners information about their rights.”
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