HOME | bmwftc

Background

In May 2014, BMW of North America LLC (BMW NA) and the US Federal Trade Commission (FTC) reached an agreement on the terms and conditions of a consent order.

The FTC alleged that certain language contained in owner literature for certain BMW motor vehicles violated the Magnuson Moss Warranty Act and/or was misleading. Essentially, the FTC took issue with statements that it claimed: (1) would lead BMW owners to believe that they would not be eligible for warranty service unless they used a BMW dealer for maintenance and repair service and/or used genuine BMW parts; or (2) overstated the importance of having oil changes performed at BMW centers.

BMW NA disagreed with the FTC’s allegations and contested that the actual language in the owner literature violated the statute, but agreed to resolve the matter by entering into a consent order in order to avoid a dispute with the FTC.

The order requires, among other things, that BMW NA send a letter to owners who received certain owner’s manuals. While BMW NA negotiated with the FTC on some of the language, the content of the letter was effectively written by the FTC staff. The letter requirement is consistent with the FTC’s practice in similar circumstances.

BMW NA was not required to pay any fine or monetary penalty in connection with the resolution or to provide any refunds to consumers.

FAQ:

Question: I received a letter from BMW that says something about the FTC and a consent decree. What’s this all about?

Response: BMW NA agreed to resolve allegations by the FTC that the particular language used in certain owner literature did not comply with certain provisions of federal law. The letter includes stickers that you should insert in your owner’s manual as indicated.

Question: I no longer have a manual. What should I do? How do I get one?

Response: At this moment in time we do not have access to updated manuals. We are working diligently to revise the content. If you require information on a particular topic, please contact us at 800-516-8500. When revised manuals are produced, we will make them available at bmwusa.com for viewing and printing.

Question: What is BMW accused of doing? Why is the FTC going after BMW?

Response: The FTC claimed that certain statements in certain BMW NA owner literature would lead customers to believe that they had to have their vehicle serviced at a BMW center, or use genuine BMW parts, in order to be eligible to receive warranty service or that they had to use BMW service centers for oil changes. BMW disagreed with the FTC, but did agree to provide notices to customers that provide more precise language on these points.

Question: Why did you agree to settle?

Response: While BMW NA disagreed with the FTC, BMW NA thought it was in the best interest of our customers to provide them with more precise language rather than to have a dispute with the FTC over this issue.

Question: Do I have to service my car with an authorized dealer?

Response: Service at an authorized BMW center is not required, but is recommended by BMW NA. Warranty service and service under the Maintenance Program are provided at no cost to consumers when service and maintenance work is performed at an authorized BMW dealer during the applicable coverage period. If you go to another service center during the warranty period and they damage the vehicle or perform improper repair or maintenance, it may affect your eligibility for warranty coverage.

Question: Will you reimburse me for an oil change or other maintenance done at a third party/independent since I have a maintenance plan?

Response: No. The maintenance plan, by its terms, only covers service at the dealer’s service center.

Question: If I don’t have to have service performed at a BMW dealer, who can I go to?

Response: BMW suggests that you choose a service provider with experience working on BMW vehicles and with the necessary tools and equipment to work on BMW vehicles and recommends that repair and maintenance be performed at an authorized BMW dealer.
If your maintenance plan or warranty is still in effect, please note that you have the availability of no-cost maintenance and/or warranty repair service at an authorized BMW dealer.

Question: Will I be eligible for a Maintenance Program Upgrade (MPU) if I service at a third party?

Response: The MPU does not pay for service at a third party. You are still eligible for an MPU contract if you had prior service at a third party - - unless the third party caused damage to the vehicle.

Question: I continued to maintain my vehicle at an authorized dealer even after the included maintenance expired, and now you’re telling me I didn’t have to do that. Since my dealer is more expensive than my local independent, will you reimburse me the difference?

Response: BMW NA will not reimburse consumers for any post-Maintenance Program maintenance work. As you may know, many BMW centers participate in the Value Line Service program, which offers service for your BMW vehicle at competitive prices after the expiration of the applicable Maintenance Program or Maintenance Program Upgrade contract, so you may want to check out that program and the competitive dealer maintenance service pricing.

Question: What maintenance proof should I keep in my records if I choose to service at a third party?

Response: We recommend that you keep records of all maintenance and repairs performed on your vehicle, regardless of where the service is performed. Remember, if you are within the Maintenance Program period, maintenance is provided at no additional cost at an authorized BMW dealer.

If you have any additional questions, you may contact us at: 800-516-8500