49–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–243 

E-WARRANTY ACT OF 2015 

SEPTEMBER 8, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. UPTON, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 3154] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 3154) to allow manufacturers to meet warranty and 

labeling requirements for consumer products by displaying the 

terms of warranties on Internet websites, and for other purposes, 

having considered the same, report favorably thereon without 

amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Committee Votes ...................................................................................................... 3 

Committee Oversight Findings ............................................................................... 3 

Statement of General Performance Goals and Objectives .................................... 3 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 3 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 3 

Committee Cost Estimate ....................................................................................... 3 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 4 

Duplication of Federal Programs ............................................................................ 5 

Disclosure of Directed Rule Makings ..................................................................... 5 

Advisory Committee Statement .............................................................................. 5 

Applicability to Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 6 


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PURPOSE AND SUMMARY

The purpose of H.R. 3154, E-Warranty Act of 2015, is to modernize the rules that manufacturers and sellers must follow to meet 

their warranty content and disclosure obligations by allowing online posting of such information in certain circumstances. The EWarranty Act of 2015 would require the Federal Trade Commission 

(FTC) to update its rules to comply with the bill. 

BACKGROUND AND NEED FOR LEGISLATION

Currently, manufacturers of consumer products must provide 

written warranty information to consumers where the consumer 

products are purchased. Under the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (15 U.S.C. 2301 et seq.), 

the FTC has rulemaking and enforcement authority over the content and availability of warranty disclosures at the point of sale 

where manufacturers choose to provide warranties. Today, the FTC 

does not permit manufacturers or sellers to meet their obligations 

by posting warranty information on their websites. 

In 1975, the FTC adopted its Disclosure of Written Consumer 

Product Warranty Terms and Conditions Rule (16 C.F.R. Part 701) 

(Disclosure Rule) and Pre-Sale Availability Rule (16 C.F.R. Part 

702) for products costing the consumer more than $15. Although 

there have been significant technological advancements since 1975, 

the FTC has not updated these provisions to reflect modern methods of communication. 

The Disclosure Rule requires that warranty disclosures must be 

clearly and conspicuously disclosed in a single document in simple 

and readily understood language with nine elements including: the 

identity of the party to whom the written warranty is extended 

(e.g. original consumer purchaser); a description of the product covered by and where necessary for clarification, excluded from the 

warranty; the warranty duration; and a step-by-step explanation of 

the procedure that the consumer should follow in order to obtain 

performance of any warranty obligation. 

The Pre-Sale Availability Rule outlines the duties of both warrantors and sellers. Sellers are required to make the text of the 

warranty readily available for examination by the prospective 

buyer by displaying it in close proximity to the product or providing 

it upon request subject to certain disclosure requirements. Warrantors are required to provide the written warranty materials necessary for sellers to comply with the Rule. The Pre-Sale Availability Rule also includes particularized requirements for catalog 

sales, mail order sales, and door-to-door sales. 

Under the plain language of the current rules, manufacturers 

may not satisfy the warranty requirements by making applicable 

warranty information available only online. The FTC has interpreted the Pre-Sale Availability Rule to allow for manufacturers to 

provide electronic versions of consumer product warranties at the 

point of sale, written warranties that are included on CDs, DVDs, 

or on the internal drives of warranted products would qualify as 

being ‘‘provided with’’ or as ‘‘accompanying’’ the products, in compliance with the Pre-Sale Availability Rule. 

H.R. 3154 would require the FTC to update the warranty rules 

to allow manufacturers to fulfill their obligations by making warVerDate Sep 11 2014 05:35 Sep 10, 2015 Jkt 049006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR243.XXX HR243

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ranty information available online or through other electronic 

means while ensuring that consumers’ and prospective consumers 

remain able to obtain copies of warranties at the point of sale without placing additional burdens on sellers. 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

COMMITTEE CONSIDERATION

On July 23, 2015, the Subcommittee on Commerce, Manufacturing, and Trade met in open markup session and forwarded H.R. 

3154 to the full Committee, without amendment, by a voice vote. 

On July 29, 2015, the full Committee on Energy and Commerce 

met in open markup session and ordered H.R. 3154 reported to the 

House, without amendment, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no 

record votes taken in connection with ordering H.R. 3154 reported. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has not held hearings on this 

legislation. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goal of H.R. 3154 is to allow manufacturers of consumer 

products to fulfill their warranty disclosure and labeling obligations 

through online or other electronic means in certain circumstances 

without limiting consumers’ access to the warranty information. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 3154 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the 

Rules of the House of Representatives, the Committee finds that 

H.R. 3154 contains no earmarks, limited tax benefits, or limited 

tariff benefits. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 


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CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, August 19, 2015. 

Hon. FRED UPTON, Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3154, the E-Warranty Act 

of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 3154—E-Warranty Act of 2015 

Under current law, manufacturers of consumer products must 

provide written warranty information to consumers at the place 

where those goods are purchased. H.R. 3154 would allow those 

manufacturers to make such warranty information available on the 

Internet and remain in compliance with the law. The bill would require the Federal Trade Commission (FTC) to revise rules to reflect 

the new notification standards. 

Based on information from the FTC, CBO estimates that implementing the rulemaking requirement in H.R. 3154 would not have 

a significant effect on discretionary costs. Enacting H.R. 3154 

would not affect direct spending or revenues; therefore, pay-as-yougo procedures do not apply. 

H.R. 3154 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

On June 10, 2015, CBO transmitted a cost estimate for S. 1359, 

the E-Warranty Act of 2015, as ordered reported by the Senate 

Committee on Commerce, Science, and Transportation on May 20, 

2015. The two pieces of legislation are similar and the estimated 

budgetary effects are the same. 

The CBO staff contact for this estimate is Susan Willie. The estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 


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DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 3154 establishes or reauthorizes a program 

of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The Committee estimates that enacting H.R. 3154 specifically directs to be completed 1 rule making within the meaning of 5 U.S.C. 

551. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 provides that the Act may be cited as the ‘‘E-Warranty 

Act of 2015.’’ 

Section 2. Findings 

This section includes Congressional findings that (1) manufacturers and consumers prefer to have the option to provide or receive 

warranty information online; (2) modernizing warrant notification 

rules is necessary to allow the United States to compete globally 

in manufacturing, trade, and the development of consumer products connected to the Internet; and (3) expanding consumer access 

to relevant consumer information in an environmentally friendly 

way and providing manufacturers flexibility to meet labeling and 

warranty requirements would be achieved by allowing an electronic 

warrant option. 

Section 3. Electronic display of terms of written warranty for consumer products 

This section would amend existing warranty disclosure provisions of the Magnuson-Moss Warranty Act to allow a seller to make 

written warranty terms available in an accessible digital format on 

the Internet website of the manufacturer of the consumer product 

and providing the consumer, or prospective consumer, with information about how to obtain and review the warranty terms by indicating on the product, the product packaging, or in the product 

manual the Internet website of the manufacturer where the warranty terms can be obtained and viewed and the phone number, 

postal mailing address, or other reasonable non-Internet based 


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means of contacting the manufacturer to obtain and review the 

warranty terms. 

This section requires that, in the case where the terms of any 

written warranty must be disclosed to the consumer prior to the 

sale of the product at a retail location, by catalog, or through doorto-door sales, the option to provide the terms in an accessible digital format shall only apply if the seller makes the terms of the 

warranty available, through electronic or other means, at the location of the sale to the consumer. 

This section requires the Federal Trade Commission to revise the 

relevant rules to comply with the Act within one year of enactment. 

The Commission may waive the requirement of section 109(a) of 

the Magnuson-Mass Warranty-Federal Trade Commission Improvement Act (15 U.S.C. 2302(b)) to give interested persons an opportunity for oral presentation if the Commission determines that giving interested persons such opportunity would interfere with the 

ability of the Commission to revise the rules in a timely manner. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italics 

and existing law in which no change is proposed is shown in 

roman): 

MAGNUSON-MOSS WARRANTY—FEDERAL TRADE 

COMMISSION IMPROVEMENT ACT 

* * * * * * * 

WARRANTY PROVISIONS

SEC. 102. (a) In order to improve the adequacy of information 

available to consumers, prevent deception, and improve competition 

in the marketing of consumer products, any warrantor warranting 

a consumer product to a consumer by means of a written warranty 

shall, to the extent required by rules of the Commission, fully and 

conspicuously disclose in simple and readily understood language 

the terms and conditions of such warranty. Such rules may require 

inclusion in the written warranty of any of the following items 

among others: 

(1) The clear identification of the names and addresses of the 

warrantors. 

(2) The identity of the party or parties to whom the warranty 

is extended. 

(3) The products or parts covered. 

(4) A statement of what the warrantor will do in the event 

of a defect, malfunction, or failure to conform with such written warranty—at whose expense—and for what period of time. 

(5) A statement of what the consumer must do and expenses 

he must bear. 

(6) Exceptions and exclusions from the terms of the warranty. 

(7) The step-by-step procedure which the consumer should 

take in order to obtain performance of any obligation under the 


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warranty, including the identification of any person or class of 

persons authorized to perform the obligations set forth in the 

warranty. 

(8) Information respecting the availability of any informal 

dispute settlement procedure offered by the warrantor and a 

recital, where the warranty so provides, that the purchaser 

may be required to resort to such procedure before pursuing 

any legal remedies in the courts. 

(9) A brief, general description of the legal remedies available to the consumer. 

(10) The time at which the warrantor will perform any obligations under the warranty. 

(11) The period of time within which, after notice of a defect, 

malfunction, or failure to conform with the warranty, the warrantor will perform any obligations under the warranty. 

(12) The characteristics or properties of the products, or 

parts thereof, that are not covered by the warranty. 

(13) The elements of the warranty in words or phrases which 

would not mislead a reasonable, average consumer as to the 

nature or scope of the warranty. 

(b)(1)(A) The Commission shall prescribe rules requiring that the 

terms of any written warranty on a consumer product be made 

available to the consumer (or prospective consumer) prior to the 

sale of the product to him. 

(B) The Commission may prescribe rules for determining the 

manner and form in which information with respect to any written 

warranty of a consumer product shall be clearly and conspicuously 

presented or displayed so as not to mislead the reasonable, average 

consumer, when such information is contained in advertising, labeling, point-of-sale material, or other representations in writing. 

(2) Nothing in this title (other than paragraph (3) of this subsection) shall be deemed to authorize the Commission to prescribe 

the duration of written warranties given or to require that a consumer product or any of its components be warranted. 

(3) The Commission may prescribe rules for extending the period 

of time a written warranty or service contract is in effect to correspond with any period of time in excess of a reasonable period 

(not less than 10 days) during which the consumer is deprived of 

the use of such consumer product by reason of failure of the product to conform with the written warranty or by reason of the failure of the warrantor (or service contract) to carry out such warranty (or service contract) within the period specified in the warranty (or service contract). 

(4)(A) Except as provided in subparagraph (B), the rules prescribed under this subsection shall allow for the satisfaction of all 

requirements concerning the availability of terms of a written warranty on a consumer product under this subsection by— 

(i) making available such terms in an accessible digital 

format on the Internet website of the manufacturer of the 

consumer product in a clear and conspicuous manner; and 

(ii) providing to the consumer (or prospective consumer) 

information with respect to how to obtain and review such 

terms by indicating on the product or product packaging or 

in the product manual— 


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(I) the Internet website of the manufacturer where 

such terms can be obtained and reviewed; and 

(II) the phone number of the manufacturer, the postal mailing address of the manufacturer, or another 

reasonable non-Internet based means of contacting the 

manufacturer to obtain and review such terms. 

(B) With respect to any requirement that the terms of any 

written warranty for a consumer product be made available to 

the consumer (or prospective consumer) prior to sale of the product, in a case in which a consumer product is offered for sale 

in a retail location, by catalog, or through door-to-door sales, 

subparagraph (A) shall only apply if the seller makes available, 

through electronic or other means, at the location of the sale to 

the consumer purchasing the consumer product the terms of the 

warranty for the consumer product before the purchase. 

(c) No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer’s using, 

in connection with such product, any article or service (other than 

article or service provided without charge under the terms of the 

warranty) which is identified by brand, trade, or corporate name; 

except that the prohibition of this subsection may be waived by the 

Commission if— 

(1) the warrantor satisfies the Commission that the warranted product will function properly only if the article or service so identified is used in connection with the warranted product, and 

(2) the Commission finds that such a waiver is in the public 

interest. 

The Commission shall identify in the Federal Register, and permit 

public comment on, all applications for waiver of the prohibition of 

this subsection, and shall publish in the Federal Register its disposition of any such application, including the reasons therefor. 

(d) The Commission may by rule devise detailed substantive warranty provisions which warrantors may incorporate by reference in 

their warranties. 

(e) The provisions of this section apply only to warranties which 

pertain to consumer products actually costing the consumer more 

than $5. 

* * * * * * * 

Æ 


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