BMW Unit Settles U.S. Charges Linked to Mini Warranties

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 [e-mail]

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