[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR702.3]

[Page 534-535]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 702--PRE-SALE AVAILABILITY OF WRITTEN WARRANTY TERMS--Table of Contents
 
Sec. 702.3  Pre-sale availability of written warranty terms.

    The following requirements apply to consumer products actually 
costing the consumer more than $15.00:
    (a) Duties of seller. Except as provided in paragraphs (c) through 
(d) of this section, the seller of a consumer product with a written 
warranty shall make a text of the warranty readily available for 
examination by the prospective buyer by:
    (1) Displaying it in close proximity to the warranted product, or
    (2) Furnishing it upon request prior to sale and placing signs 
reasonably calculated to elicit the prospective buyer's attention in 
prominent locations in the store or department advising such prospective 
buyers of the availability of warranties upon request.
    (b) Duties of the warrantor. (1) A warrantor who gives a written 
warranty warranting to a consumer a consumer product actually costing 
the consumer more than $15.00 shall:
    (i) Provide sellers with warranty materials necessary for such 
sellers to comply with the requirements set forth in paragraph (a) of 
this section, by the use of one or more by the following means:
    (A) Providing a copy of the written warranty with every warranted 
consumer product; and/or
    (B) Providing a tag, sign, sticker, label, decal or other attachment 
to the product, which contains the full text of the written warranty; 
and/or
    (C) Printing on or otherwise attaching the text of the written 
warranty to the package, carton, or other container if that package, 
carton or other container is normally used for display purposes. If the 
warrantor elects this option a copy of the written warranty must also 
accompany the warranted product; and/or
    (D) Providing a notice, sign, or poster disclosing the text of a 
consumer product warranty. If the warrantor elects this option, a copy 
of the written warranty must also accompany each warranted product.
    (ii) Provide catalog, mail order, and door-to-door sellers with 
copies of written warranties necessary for such sellers to comply with 
the requirements set forth in paragraphs (c) and (d) of this section.
    (2) Paragraph (a)(1) of this section shall not be applicable with 
respect to statements of general policy on emblems, seals or insignias 
issued by third parties promising replacement or

[[Page 535]]

refund if a consumer product is defective, which statements contain no 
representation or assurance of the quality or performance 
characteristics of the product; provided that
    (i) The disclosures required by Sec. 701.3(a) (1) through (9) of 
this part are published by such third parties in each issue of a 
publication with a general circulation, and
    (ii) Such disclosures are provided free of charge to any consumer 
upon written request.
    (c) Catalog and mail order sales. (1) For purposes of this 
paragraph:
    (i) Catalog or mail order sales means any offer for sale, or any 
solicitation for an order for a consumer product with a written 
warranty, which includes instructions for ordering the product which do 
not require a personal visit to the seller's establishment.
    (ii) Close conjunction means on the page containing the description 
of the warranted product, or on the page facing that page.
    (2) Any seller who offers for sale to consumers consumer products 
with written warranties by means of a catalog or mail order solicitation 
shall:
    (i) Clearly and conspicuously disclose in such catalog or 
solicitation in close conjunction to the description of warranted 
product, or in an information section of the catalog or solicitation 
clearly referenced, including a page number, in close conjunction to the 
description of the warranted product, either:
    (A) The full text of the written warranty; or
    (B) That the written warranty can be obtained free upon specific 
written request, and the address where such warranty can be obtained. If 
this option is elected, such seller shall promptly provide a copy of any 
written warranty requested by the consumer.
    (d) Door-to-door sales. (1) For purposes of this paragraph:
    (i) Door-to-door sale means a sale of consumer products in which the 
seller or his representative personally solicits the sale, including 
those in response to or following an invitation by a buyer, and the 
buyer's agreement to offer to purchase is made at a place other than the 
place of business of the seller.
    (ii) Prospective buyer means an individual solicited by a door-to-
door seller to buy a consumer product who indicates sufficient interest 
in that consumer product or maintains sufficient contact with the seller 
for the seller reasonably to conclude that the person solicited is 
considering purchasing the product.
    (2) Any seller who offers for sale to consumers consumer products 
with written warranties by means of door-to-door sales shall, prior to 
the consummation of the sale, disclose the fact that the sales 
representative has copies of the warranties for the warranted products 
being offered for sale, which may be inspected by the prospective buyer 
at any time during the sales presentation. Such disclosure shall be made 
orally and shall be included in any written materials shown to 
prospective buyers.

[40 FR 60189, Dec. 31, 1975, as amended at 52 FR 7574, Mar. 12, 1987]