Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of Harley-Davidson Motor Company Group, LLC

File No. 2123140

The Federal Trade Commission (the “Commission”) has accepted, subject to final 

approval, an agreement containing a consent order from Harley-Davidson Motor 

Company Group, LLC (“Respondent” or “Harley-Davidson”).

The proposed consent order (“Proposed Order”) has been placed on the public 

record for thirty (30) days for receipt of comments by interested persons. Comments 

received during this period will become part of the public record. After thirty (30) days, 

the Commission will again review the agreement, along with any comments received, and 

will decide whether it should withdraw from the agreement and take appropriate action or 

make final the Proposed Order.

This matter involves the warranty that Harley-Davidson offers to purchasers of its 

motorcycles. According to the Commission’s complaint, Harley-Davidson’s warranty is 

conditioned on purchasers using authorized Harley-Davidson parts and accessories; 

otherwise, the warranty is void. In addition, the complaint alleges that HarleyDavidson’s warranty does not contain a clear explanation of all material terms; instead, 

the warranty informs purchasers that they must ask a Harley-Davidson dealer to get a full 

explanation of what is covered by the warranty, and what is not. 

Based on the foregoing, the Commission alleges that Respondent violated the 

Magnuson-Moss Warranty Act and regulations promulgated thereunder, including the 

Rule Governing Disclosure of Written Consumer Product Warranty Terms and 

Conditions, and engaged in deceptive acts or practices in violation of Section 5(a) of the 

FTC Act. 

 

The Proposed Order contains injunctive provisions addressing the alleged 

deceptive conduct. Section I prohibits Respondent from (1) expressly or implicitly 

conditioning a warranty on a consumer’s use of any article or service which is identified 

by brand, trade, or corporate name, unless the article or service is offered for free or the 

Commission has issued a waiver to the company, or from otherwise violating the 

Warranty Act or the Rules promulgated thereunder; and (2) failing to disclose all 

warranty terms in a single document that uses simple and readily understood terms to 

describe the warranty to consumers. Section I permits Respondent to not modify its 

existing calendar year 2022 warranty documents, provided that Respondent provides all 

purchasers of its calendar year 2022 motorcycles with a copy of the updated warranty and 

a customer notice and requires its authorized dealers to maintain copies of these records.

Section II prohibits Respondent from representing to consumers, expressly or by 

implication, (a) that its warranties will be void if they use third-party parts or services or 

if they modify or alter the product without authorization, or (b) as a condition of warranty 

coverage or in the written warranty, that consumers should only use branded parts or 

have their product repaired, altered or serviced by authorized service providers. 
Respondent will be permitted to exclude from its warranty coverage (1) damages caused 

by the use of unauthorized parts or services, the use of its vehicles for racing or 

competitions or the installation of parts designed for unauthorized uses of the vehicle, 

such as trailer hitches, and (2) all functional defects of powertrain components for any 

Harley-Davidson motorcycle registered in the United States if the vehicle was tuned 

using a tuning product not covered by a California Air and Resources Board Executive 

Order or that was otherwise approved by the Environmental Protection Agency, or if 

Harley-Davidson or any authorized Harley-Davidson dealer has any information to show 

that the vehicle was tuned using a tuning product not covered by a California Air and 

Resources Board Executive Order or that was otherwise approved by the Environmental 

Protection Agency.

Section II also requires Respondent to include language in the warranty that 

affirmatively notifies consumers of their rights to use third-party services and parts under 

the Magnuson-Moss Warranty Act and enjoins Respondent from misrepresenting any 

material facts to consumers about the warranty.

Sections III and IV require Respondent to inform its customers and authorized 

dealers and service providers that its warranty has been updated, and that the updated 

warranty is not conditioned on the use of authorized parts or services. Respondent must

clearly and conspicuously post and keep on its website the notice and its updated 

warranty terms, and it must submit reports regarding its notification program. 

Sections V through VII of the Proposed Order are reporting and compliance 

provisions, which include recordkeeping requirements and provisions requiring 

Respondent to provide information or documents necessary for the Commission to 

monitor compliance with the Proposed Order. Section IX states that the Proposed Order 

will remain in effect for twenty (20) years, with certain exceptions.

The purpose of this analysis is to aid public comment on the Proposed Order. It is 

not intended to constitute an official interpretation of the complaint or Proposed Order, or 

to modify in any way the Proposed Order’s terms.