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"You have a right to know!" Brochure
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It has come to our attention that certain O.E.M. manufacturers may have urged you not to sell or use aftermarket (non O.E.M.) parts. Federal and state anti-trust laws prohibit unfair sales practices. It is the purpose of this brochure to bring to your attention those sales practices which we believe to be unlawful.
Under the anti-trust laws, unless you have an exclusive franchise or dealer agreement that states that you may only sell for one manufacturer, you may sell aftermarket parts. Further, the antitrust laws do not allow a franchise agreement to prohibit you from selling or using aftermarket parts unless it also prohibits you from selling or using parts of all other manufacturers. If you are currently selling aftermarket parts and the parts of at least one other manufacturer, you can continue to sell aftermarket parts.
A manufacturer cannot stop you from using aftermarket parts in the repair of its products or of any other manufacturer's products. If your franchise or warranty agreement so states, a manufacturer can only insist that you use its replacement parts for repairs to its products under warranty, provided that the consumer is not being charged for these O.E.M. parts.
It is one thing for a manufacturer to insist that you use only his parts for warranty work on his manufactured products. It is an entirely separate and unlawful act for a manufacturer to demand that you exclude aftermarket parts from your store and keep you from selling them.
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Under the Magnuson-Moss Warranty Act and the Regulations of the Federal Trade Commission, a manufacturer giving a written warranty on a consumer product may not condition his warranty of such product on the consumer using any articles (other than an article provided without charge under the terms of the warranty) which are identified by brand or corporate name. Only the Federal Trade Commission can give a waiver of this prohibition to a manufacturer.
The same statute requires a manufacturer that has given a written warranty on a consumer product to provide a minimum remedy on a valid warranty claim for such consumer products within a reasonable time and without charge, where there is a defect, malfunction or failure of the product to conform with such written warranty. The statute also provides that the warrantor may not charge the consumer for any costs that the warrantor or his representatives incur in connection with the required remedy of a warranted consumer product. In other words, the manufacturer or his retail representatives, in honoring a warranty claim of a consumer product, cannot charge the consumer for the cost of any replacement parts needed in the repair of the consumer product, as a result of its defect or malfunction.
If an O.E.M. manufacturer attempts to prevent you from using aftermarket parts in the repair of its products or of any other manufacturer's products, you should take one or more of the following steps:
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- Insist that the manufacturer provide its O.E.M. part to the customer at no cost and inform the customer that the manufacturer must provide the part at no cost;
- If the manufacturer refuses to provide its part at no cost, insist that the manufacturer provide to you in writing its policy of allowing only its own parts to be used in the repair of its products or other products;
- Advise us of any instances where a manufacturer has insisted that you use its O.E.M. parts as repair parts;
- Report continuing incidents to the Federal Trade Commission, 601 Pennsylvania Avenue, N.W., Washington, DC 20580, telephone number (202) 326-2222.
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Please feel free to show this brochure to any manufacturer's representative or salesman who tries to boycott aftermarket parts. If we have the opportunity to talk to that manufacturer about the attempt to boycott aftermarket parts, we are confident we can put a stop to these unfair activities.
We want to hear from you. Write and let us know what you have experienced on this important subject.
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Outdoor Power Equipment Aftermarket Association
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