ASUS Already On Government's Radar for Warranty Issues
Summary
TLDRThe video script discusses issues with Asus's warranty practices, highlighting over a hundred consumer complaints and the FTC's involvement. The host offers to assist Asus with customer issues but is rejected. To aid consumers, a warranty toolkit is introduced on gamersnexus.net, providing legal definitions, rights information, and templated replies for warranty claims. The script also features an interview with Nathan Proctor from the Public Interest Research Group (PIRG), focusing on consumer rights and advocating for change in corporate behavior through education and potential policy changes. The conversation emphasizes the power of collective action and the importance of standing up against unfair practices.
Takeaways
- ๐ Asus has reportedly mistreated over a hundred customers with warranty issues, and the FTC has evidence of these actions.
- ๐ฒ The speaker offered to help Asus address customer complaints but was rejected, which is seen as a sign of disregard for customer satisfaction.
- ๐ก๏ธ A warranty click toolkit has been created on gamers nexus.net to help consumers understand their rights and how to respond to warranty issues effectively.
- ๐ The toolkit includes legal definitions, explanations of consumer rights, templated replies for warranty claims, and guidelines on documenting devices and manufacturer interactions.
- ๐ The video discusses consumer rights and protections, with a focus on US-specific laws, but also mentions broader principles applicable elsewhere.
- ๐ A Google form has been provided for Asus customers to compile evidence of warranty issues in a standardized way for potential FTC action.
- ๐ A shirt sale is mentioned as a way to fund consumer advocacy and reporting efforts, featuring a design with PC components and a golden foil finish.
- ๐ The speaker intends to investigate other manufacturers' warranty practices beyond Asus and has conducted undercover warranty investigations in the past.
- ๐ค The video emphasizes the importance of market leaders like Asus setting a positive example for customer support, which can influence the entire industry.
- ๐ค The discussion includes an interview with Nathan Proctor from the Public Interest Research Group (PERG) about consumer rights and the potential for legal action against companies like Asus.
Q & A
What is the main issue discussed in the video script regarding Asus?
-The main issue discussed is Asus' handling of warranty claims, where they have allegedly denied valid claims and pressured customers into paying for unnecessary repairs, affecting over a hundred people.
What action has the Federal Trade Commission (FTC) taken regarding Asus' warranty practices in the past?
-In 2018, the FTC sent a letter to Asus expressing concerns about their warranty coverage and practices, specifically mentioning issues like voiding warranties for firmware issues or if products were tampered with or repaired by unauthorized personnel.
What is the purpose of the warranty click toolkit created by Gamers Nexus?
-The warranty click toolkit on Gamers Nexus is designed to inform consumers of their rights and provide templated replies and guidelines to help them with warranty claims, ensuring they can get a productive and speedy response from manufacturers.
What is the role of Nathan Proctor in the discussion about consumer rights?
-Nathan Proctor is the Senior National Campaign Director for the Public Interest Research Groups (PIRG) Network, working on right to repair advocacy. He shares his expertise on consumer rights and discusses strategies for influencing corporate behavior.
How can consumers protect themselves from unfair warranty practices?
-Consumers can protect themselves by understanding their rights, using resources like the warranty click toolkit to draft responses for warranty claims, documenting their device issues, and seeking guidance from consumer rights organizations.
What is the significance of the FTC's updated policy statement in 2021 regarding warranties?
-The FTC's updated policy statement in 2021 emphasized their commitment to enforcing warranty laws and pursuing companies that violate terms of warranties, signaling a stronger stance on consumer protection in this area.
What steps can consumers take if they believe their warranty claim has been unfairly denied?
-Consumers can file a complaint with the FTC through reportfraud.ftc.gov, gather evidence, and use resources like the warranty click toolkit to construct a case, potentially leading to an FTC investigation.
How does the script suggest that companies like Asus could improve their warranty practices?
-The script suggests that companies should follow the law, treat customers fairly, and consider the long-term benefits of positive customer experiences and brand reputation over short-term cost savings.
What is the potential impact of a company like Asus being investigated by the FTC for unfair warranty practices?
-An FTC investigation could lead to the company being required to change its processes, provide compensation, and publicly acknowledge and rectify the issues, as seen in cases like Harley-Davidson's agreement with the FTC.
How can consumers contribute to changing corporate behavior regarding warranty practices?
-Consumers can raise awareness, file complaints, support advocacy groups, and use social media to share their experiences, which can influence public opinion and corporate behavior.
Outlines
๐ Asus FTC Complaints and Consumer Rights
The video script discusses the issue of Asus potentially mistreating customers with warranty claims, with over 100 people reportedly affected. The Federal Trade Commission (FTC) has evidence of these complaints. The script mentions an Asus apology that lacks substance. The focus then shifts to consumer protection, offering advice on how to safeguard against poor customer service, with a specific emphasis on US consumer rights. The video is part of a series addressing Asus's practices and aims to help customers with warranty issues. A warranty toolkit is introduced on gamersnexus.net to assist customers globally with legal definitions, rights information, and templated replies for warranty claims. The script also mentions the possibility of filing a report with the FTC and encourages affected Asus customers to share their experiences.
๐ก๏ธ Advocating for Consumer Rights and ASUS Improvement
The script continues the discussion on Asus's warranty issues, emphasizing the desire for the company to improve for the sake of its customers. The speaker offers assistance to Asus in resolving customer complaints but is rejected, which is seen as a sign of disrespect towards customers. The video's broader goal is to create a resource for consumers to successfully file warranty claims and to educate viewers on their rights. The US is the primary focus due to the speaker's familiarity with its laws. The script mentions an interview with Nathan Proctor from the public interest research group (PERG) to discuss consumer rights and the intention to file an Asus-specific report with the FTC. There's a call to action for affected customers to fill out a form to compile evidence for potential FTC attention.
๐ Positive Examples of Warranty Handling by Arctic and Fractal
The script contrasts Asus's approach with that of two companies, Arctic and Fractal, which have handled warranty issues exceptionally well. Arctic proactively addressed an issue with a liquid cooler pump, offering customers repair options, while Fractal recalled a product with a potential safety hazard and fixed it before widespread distribution. These examples demonstrate that companies can act in the best interest of consumers, which can also lead to increased sales and a better reputation. The speaker encourages Asus and other companies to learn from these examples and to prioritize customer satisfaction.
๐ ๏ธ The Importance of Right to Repair and Consumer Advocacy
Nathan Proctor, the senior national campaign director for the Public Interest Research Groups (PIRG) network, discusses his work on right to repair advocacy. He shares a success story involving Google Chromebooks, where PIRG's pressure led to Google extending the support period for security updates, benefiting schools with thousands of devices. The conversation highlights the challenges of advocating for consumer rights, especially when dealing with large corporations. The script underscores the need for regulations and laws to ensure companies treat customers fairly, even when they have already made their money from the sale.
๐ Addressing Warranty Issues and FTC Regulations
The script delves into the complexities of warranty issues, especially after a product has been purchased and the consumer is within the company's ecosystem. It discusses the role of competition law and antitrust law, specifically the concept of tying, which prevents companies from forcing customers to buy additional goods or services. The FTC has previously taken action against companies, including Asus, for violating warranty terms. The speaker suggests that if enough customers report issues, the FTC could investigate and potentially take action against Asus, as they have done with other companies.
๐ค Collaborating for Change: FTC's Role in Consumer Protection
The script outlines the process of how the FTC could potentially intervene in a company's warranty practices if there is a systemic issue affecting numerous customers. It uses the example of Harley-Davidson to illustrate how the FTC can investigate, evaluate processes against objective information, and work with the company to establish a fair resolution. The FTC aims to remedy the situation with firm standards and timelines, ensuring that companies comply with regulations and treat customers fairly.
๐ณ๏ธ Empowering Consumers and Encouraging Action
The final paragraph emphasizes the power consumers have in a democratic society to influence corporate behavior and shape regulations. It encourages viewers to take action, join organizations like PIRG, and support advocacy groups that work on their behalf. The script acknowledges the rarity of such democratic power and the importance of using it to effect change, as exemplified by the successful extension of Chromebook support by Google.
Mindmap
Keywords
๐กFTC
๐กConsumer Rights
๐กWarranty
๐กAsus
๐กRight to Repair
๐กMagnuson-Moss Warranty Act
๐กNon-Apology
๐กConsumer Advocacy
๐กTemplated Replies
๐กSystemic Problem
๐กMarket Leader
Highlights
Asus has allegedly mistreated over 100 customers according to FTC receipts, prompting potential legal action.
A public figure offers to mediate between Asus and its customers but is rejected, indicating Asus' disregard for customer satisfaction.
A warranty click toolkit is introduced on gamersnexus.net to assist consumers in dealing with warranty claims.
The toolkit includes legal definitions, consumer rights information, and templated replies for warranty claims.
Guidelines are provided for documenting devices and seeking manufacturer guidance to prevent claim denials.
A collaboration with the public interest research group aims to educate consumers on their rights and support them against uncooperative companies like Asus.
A report specific to Asus is being prepared for submission to the Federal Trade Commission to address warranty issues.
Consumers with Asus warranty issues are encouraged to fill out a Google form to compile evidence for FTC consideration.
The discussion includes a call to action for consumer education and advocacy, transcending the specific case of Asus.
Examples of companies like Arctic and Fractal are highlighted for their exceptional handling of warranty claims, serving as a contrast to Asus.
The potential positive impact on sales when companies address warranty issues correctly is discussed, using the examples of Arctic and Fractal.
The importance of setting industry standards for consumer rights and warranty claims is emphasized.
The role of competition law and antitrust regulations in ensuring consumer mobility and fair treatment is explained.
The concept of tying in antitrust law, which prevents manufacturers from forcing additional purchases, is discussed in relation to warranties.
Asus had previously been in trouble with the FTC for warranty violations, indicating a pattern of behavior.
The FTC's recent enforcement actions against companies like Harley-Davidson for illegal warranty practices are detailed.
The process for the FTC to investigate and enforce changes on companies found in violation of consumer protection laws is outlined.
The power dynamics between consumers and manufacturers are discussed, encouraging consumers to be proactive in asserting their rights.
Resources such as the Right to Repair campaign and organizations like the EFF and Consumer Reports are recommended for consumers seeking help.
Transcripts
if Asus has done this exact thing to
more than a 100 people and the FTC has
receipts about it that is enough for
them to go after him you know you were
showing me your phone and you're just
there was just email after email after
email of people with complaints if all
those people filled out this form 100%
the FTC would do
something acus has posted a second
apology it's the classic recursive
apology apology from a corporation after
it's non-apology where it's apologizing
for that non-apology so we're not going
to give the light of day it mostly says
the same stuff there's nothing concrete
or substantially different in it it's a
longer version that is less accusatory
but it basically says the same thing so
uh this video is not only about Asus
we're going to be talking about how to
protect yourself from getting screwed as
a customer talking about some of your
consumer rights some of this is very us
specific some of it is wider reaching
applies basically anywhere we're in the
US those are the laws that are the
easiest for me to research and
understand uh but as far as the Asus
part because we do want to close it that
story line This is basically part three
it might be the final for now uh again
we did a a similar thing last year with
them so there's always room for more
especially with Asus and we'll see maybe
we talk to them in the future but just
to get it out there publicly I asked
Asus if I could try to help them with
their own customers by which I meant hey
I have an inbox full of very upset Asus
customers I would like to help you help
them and they rejected the offer which
is cowardice and uh in my opinion anyway
and in the very least kind of shows what
they think of their own customers um so
anyway what we're doing now this because
this does go beyond Asus we can do
something productive and help some of
the people with all of these warranty
issues in general uh maybe even get some
policy passed that's kind of one of the
next things I'm starting to look into
but we have something for you all first
so we've created a warranty click
toolkit on the gamers nexus.net website
this is freely available there are no
ads on the page for any thirdparty
services and this web page contains some
legal definitions some explanations for
a US audience to inform you of your
rights but it also contains templated
replies that you can use in any region
and adapt for your own warranty claims
these are written to help you get a
productive and hopefully Speedy response
to your warranty issues with any
manufacturer we also have guidelines on
how to document your device suggestions
on how you could confirm everything in
writing and seek manufacturer guidance
every step of the way so they can't
you out of a claim and how it's
a push back against rejections of valid
claims if you happen to face one like we
did our hope is that with this
information you'll have some confidence
to be able to successfully push back in
many common scenarios of rejection of a
valid claim and we've even pointed you
towards if you're in the US at least a
couple of laws that you can reference to
maybe just get escalated to a supervisor
and have it resolved further we're
compiling a report with the public
interest interest research group they
were recommended to me by LS Rosman
Nathan Proctor from it's pronounced perg
will be joining us today in most of this
video to talk about consumer rights so
the goal here is consumer education uh
and just trying to help people as much
as possible when the company is uh
acting in the way that Asus is so we're
also going to be filing that report that
we are working on which is Asus specific
with the Federal Trade Commission so I
am going to be either personally
submitting it or submitting it to the
public interest research group who will
then bring it up as high as I can to the
FTC these reports are pretty powerful so
they are important now for everyone in
our audience who has had an Asus
warranty issue even if you've already
emailed it to us and thank you we have
lots of them now please also visit this
genius link on the screen it's GE ni.
us/ Asus claim that's just a link
shortener so g. us/ Asus claim and that
will bring you to a Google form we've
created the goal of this is to compile
evidence in a quickly referenceable and
standardized way so a form so that we
can use it going forward such as if we
want to bring any of these matters to
the attention of the FTC before that we
brought you this video our limited foil
cyers skeleton V2 shirt directly helps
fund our consumer advocacy and Reporting
efforts it features a skeletal outline
on the front comprised of PC components
pcie slots RGB strips water cooling
tubes and fittings and a pump pump block
heart the back has a spine made of
mosfets inductors and vrm components and
both sides have a shiny brilliant golden
blue foil with an updated fit from our
original artisian variant of the shirt
so if you want one and want to support
us head over to store. Gamers access.net
this issue goes far beyond Asus and
we'll be investigating other
manufacturers as well we've done a lot
of undercover warranty investigations
over the years Intel for example was one
of them in the past uh but I have
something to say to Asus directly as we
kind of close out their part of the
story line so our objective is for Asus
to be better and the reason I want Asus
to be better is not for Asus it's for
the customers or our viewers because our
really primary objective at GN is
consumer Focus who typically has the
least power in the whole chain of events
uh and if by the way of helping
consumers Asus also betters its own
reputation it gets some marketing then
great everyone's happy and Asus that is
our goal there is no other goal here so
if you claim to be a leader in the
market like you do then set the example
by sales Asus you are the leader in many
of these markets and no one is in a
better position to support the customer
than Asus they shouldn't feel threatened
by their competitors at least in things
like motherboards even handhelds they're
doing pretty well compared to their
competition uh regardless of total
market sales so if as if you suddenly
support your customers properly then all
of the manufacturers who compete with
you such as gigabyte ASRock MSI other
motherboard vendors they are going to
have to follow in order to compete
that's the great thing about when the
market leader does something right
everyone else is going to have to follow
it to compete whereas if someone smaller
does it that might just give them an
opportunity to Leap Frog Asus eventually
and get to the top so this can only help
Asus and we really want you Asus to set
the right example okay let's get into it
so we want to create a somewhat
permanent referential resource for you
to check for help with your warranty
claims it has basic guidelines how do
you successfully file a claim this is
assuming of course you have a valid
claim uh and that it's not a scam
because companies have to plan for that
too which we can respect and understand
that but the way to plan for that though
is not to just turn around and scam the
customer instead so there's the line to
be drawn we have the website page that's
made we're going to update that whenever
we think of something new to add some
kind of advice or suggestions to post
there so that's supposed to just be
there forever for you to help out
bookmarket or whatever for when you have
a warranty claim in the future uh
consumer rights differ between countries
as I said our focus is mainly the US
it's the market we're in selfishly uh
and it's the one I'm the most competent
about in terms of having access to
lawyers or people who know the laws so
we can inform ourselves so that's our
main focus but there's some generic
stuff in there too for everybody now uh
this video mostly is focused on an
interview with Nathan Proctor from the
public interest research group or again
perg uh again recommended by Lewis
Rossman and it's a companion piece to
our interview with attorney Vincent
Augusta where we discussed warranty laws
in the US Magnus and Moss the act from I
think it was the 1970s and some consumer
rights there so we've got these two
pieces where what we're trying to do
again is really take the opportunity to
to provide consumer education that is my
personal objective here because you know
this Asus thing uh it it sucks that
they're doing this it is upsetting and
it's frustrating at the same time
there's kind of a limit to how far you
can get with being frustrated and so the
thing to do once you hit that limit is
to try and turn it into education that
can be used broadly not just for this
one instance that we've been reporting
on so that's what we're doing here today
again to reference the article so it
talks through several of these aspects
we'll leave most of them there for you
to just read if you ever need it as one
example though we have some details on
how to convert a warranty support phone
call into something in writing so
everyone's on the same page that way
this is something that attorney Vincent
Augusta recommended in our discussion
with him where he's talking about
getting everything written down so the
manufacturer the customer everyone knows
what's supposed to happen here our guide
for example says to reaffirm with the
support rep on the phone that you
understand the agreement or the next
steps properly read it back to them from
your notes and then ask for their email
or a general support inbox so that you
can follow up at which point you would
confirm this understanding send the note
say just confirming that this is what we
agreed upon or what the next steps are
and that allows you to get it into some
form of writing now of course they can
respond and disagree but at least that's
written down and you can take it from
there now the reason for doing all this
or the I don't know the underlining
principle for GN from our sort of
standpoint is uh gan's grown enough at
this point and I've grown dissatisfied
enough with how a lot of these not all
of them but a lot of the companies
handle these situations where we're
starting the process of taking our
findings as far up the chain as we can
so you at first it was kind of talking
to lawyers about it getting some on
camera discussion educate the audience
and it's getting people like Nathan
Proctor on today to talk about even more
of the consumer right side but the next
step that I'm starting to look at is the
process of taking some of our findings
for things like this Asus claim and
whatever else we uh may run into to
lawmakers so I've already begun that
process of uh basically figuring out who
we want to connect with on the Congress
or Senate side of things who makes the
most sense to talk to I'm sure I'll be
having conversations with perg with Le
Rossman anyone else who can point me the
right direction who has experience with
it uh and also I'll be contacting the
Federal Trade Commission just in general
so not necessarily for Asus although
that's an option too but just more of a
hey I'd like to establish a line of
communication kind of like we did with
the US consumer protection the US cpsc
which is an agency
um that we worked with for the NZXT
cases catching on fire issue uh kind of
like that except on some of this
warranty and support side of thing so
that's kind of what we're looking at
right now which is because we've we've
done this enough we've complained enough
and um the goal isn't to just complain
it's to actually get something done and
if the companies aren't going to do it
themselves then we'll find a way to make
them do it that's that's where we're
going with it so anyway I want to
briefly talk about two times
specifically that we've covered where a
company did exceptionally well with a
warranty type issue the reason I'm
bringing these back up is because I want
to set a road map where Asus or just you
all anyone can look at it and say all
right we get it what do you want Steve
and there's two examples Arctic and
fractal both did phenomenally with their
own warranty issues they were of
different severities so uh quick recap
we already covered them in Fall we'll
link them below if you want those
details but Arctic had an issue with
corrosion of its one of its liquid
freezer 2 Series of pumps so the
previous generation they had a serial
number range and they actually contacted
us before we found out about it on our
own which is amazing already and they
said we' found this big problem uh the
pumps are getting gunked up and it's
causing temperatures to be too high or
feasibly could cause failure of the
liquid cooler product so they told us
about it they explained what the issue
was they I think gave me like some kind
of I x-ray analysis materials analysis
or whatever of the failure and with all
that detail they then said here's what
we would like uh we want everyone to
know about this and that's awesome
because their feeling was they want the
customer to have a good experience with
the product they would hate for anyone
to have this problem and not know they
can get help for it or that it's an own
issue and so they did a uh an option
where you could either send it in to get
repaired or you could take a repair kit
and repair it yourself and that was
great handled excellently um really
professional handling of that fractal
had an issue similar to XTS where it had
a PCB and I believe it was the torrent
that was uh a poor design and could
short in a way that could potentially
cause it to uh burn or maybe even catch
fire if you have the wrong conditions
just like the H1 fractal also contacted
us in advance and they said we have this
problem we are pulling all of the
shipments of the torrent back this is
like before it was really fully hitting
the market and we're fixing all of them
and we'll send them back out again with
the fixed one so those are two examples
not going to get them further we have
videos on them but the point is that
companies can do stuff well and I
actually I won't specify which one but I
spoke with one of those two companies
after it was all said and done and I
said so how'd it work out and they said
well we fixed all the claims and
actually our sales increased so much
that it even covered the cost of fixing
everything which is awesome because
companies should be recognized and
rewarded for doing the right thing like
that that is exactly how the system
should work and uh I I hope that's
encouraging for Asus to look at this and
go maybe we need to recalculate how we
view warranty claims and if they don't
if large corporations don't then keeping
in mind that you know these smaller
companies have the mobility and they
have the motive to act in the interest
of the consumers whereas large
corporations will be more calculating
and one thing that changes that
calculation is laws and policy and
legislation and things where it now
there is a potential uh punitive aspect
to it
and that that Waits the outcome for the
consumer enough of that so closing out
on the Asus side of things specifically
if you've been affected by their
warranty processes in the past even or
especially you emailed us please fill in
the survey we've linked the emails are
not going to be used for any kind of
marketing uh it is explicitly so that we
can collect data in a spreadsheet so the
inbox doesn't doesn't automatically sort
of spread sheet if I it uh and use that
to communicate with say the FTC and try
to help explain to them what is
happening in this segment of the market
and try to get something done about it
um for now though let's get into the
discussion with Nathan Proctor remember
this can be applied to other companies
it's an educational piece includes
details on how you can get involved as
well if you'd like uh uh if this all
motivates you so let's jump over to it
okay so now I am joined by Nathan
Proctor and you were recommended to me
by Lewis Rossman okay before we get into
some of the details a little bit of your
background I think would help help and
kind of where you've worked you know
within this field I am the senior
national campaign director for the perg
public interest research groups Network
working on right repair advocacy I've
been working on right repair almost
exclusively for seven years okay so some
of the campaigns you've worked on one
example you gave with the Chromebooks
give me some hope give me give me some
kind of optimism of like what is
something that has worked yeah and what
you know what does that look like at the
end you know Google is definitely a
bigger company than Asus right we were
starting we started getting calls in
like 2021
2022 from people who are at schools who
were having a lot of trouble keeping
Chromebooks in use and there's a whole
slew of problems that they had um you
know one of the big ones was that
Chromebooks have an end of support date
like an automatic expiration date for
the the security off for the security
updates that they provide um and this is
baked in like when they approve the
build at the very start of the process
you're going to get this much time after
which you won't get security updates and
the problem with that for schools is
mostly they use uh they need these
computers to be able to connect to these
secure State testing sites as well as
Enterprise tools like Google Classroom
which will will not work on an unsecured
device so schools are like literally
they had thousands and thousands of
Chromebooks totally working laptops at
the time where we released that report
you could go on Amazon on Walmart and
some of these other retailers you could
buy already software expired notebooks
as brand new with no disclosure that
that you would be totally incapable of
using them on a secure platform so we we
took we or you know we did a big thing
we we told Google we were going to do it
then we did it and um you know it's a
lot of headlines
uh there's a lot of pressure on Google
we kept on moving like we had a
secondary release of like here's all the
Chromebooks you can buy that are already
expired and you know and eventually um
there was the shareholder engagement
from people who you know from
shareholders at Google and eventually
they just said okay 10 years updates and
we're going to be retroactive we're
going to cover a bunch of things that
are coming off the AE date and um you
know I mean that was some work right but
it was the right thing
we had we had enough people engaged
Google is going to act in the best
interest of Google and if you can set up
a situation where it's in Google's
self-interest to do the right thing the
thing that's beneficial for us then then
then everybody is going to you know move
forward and that that's how you win when
you're trying to figure out how to move
a big company like that so the question
for Asus
is they they might view it as in their
self-interest to forced or to coer or to
whatever they're doing to get customers
to pay for repairs they don't need you
know I think that one to me fairly
plausible Theory would be that they have
to replace a bunch of the components in
these products because they're defective
and in order to help kind of lower the
cost they're losing money on this
they're kind of trying to you know not
so subtly twist your arm into paying for
stuff you don't need right
and that could they could view that as
their
self-interest there's definitely a
situation where it's very bad for Asus
to continue doing that or to do things
like that and so I think if you want to
think about how to change Asus as
Behavior you just create the conditions
where it's cheaper and better for their
brand for their company for their you
know their mission what they're trying
to do to treat their customers better
when it comes to warranties yeah I think
even cynically we're talking about this
before we started filming but even if
you have a cynical Outlook of the
company only wants to make money you can
still approach it from that Outlook and
okay fine how do we how do we let them
do that but in a way that's better for
everybody right I mean that's that's
that's why you know regulations and laws
are such so important right if there are
no rules and that you can do
anything that means if you're ethical if
if being ethical is more expensive
then you know if you're ethical it puts
you out of business so that's why if you
want them to behave well we need to set
the rules and so that even even the
companies that want to do the right
thing they don't lose market share
because they're like they're acting
kindly and being punished for it every
company's looking at what the other
companies are doing and if like the
number one most dominant company was
like treating customers great they'd all
be like hey we should do that so that we
look good I mean I would say the other
thing that's difficult about the
warranty part of the process and this is
true this is true in WR to repair
broadly is these things are typically
happening after they've made their money
so like you've already bought the thing
right you're already in the
ecosystem you've already got all these
games that you paid for and now they
don't have to treat you as nice and
that's why I mean competition law
broadly is really important so that
customers have the ability to move
around but then you have to rec I mean
there's this thing in antitrust law
called tying which is the core of it's a
huge part of Magnuson Moss and the idea
of tying is that if you have one
purchase if you make one purchase you
shouldn't be able to coers the person to
buying another good or service right so
if I buy a car it shouldn't secretly
have a built-in Arrangement where I have
to go only to the dealership to get oil
changes because there's no other way to
do it that's viewed as an
anti-competitive ative act the FTC has
rules around tying that is the reason
why in Magnuson Moss the warranty law
federal warranty law which you guys
discussed in your last
episode it says you're not allowed to
condition someone's warranty on
exclusive use of the
manufacturer's repair services or their
materials like if it used to some kind
of consumable um like batteries you
can't say you have to use our batteries
um but you know Asus has actually
already been in trouble for this very
thing right we were discussing this
before and yeah let's pull that up let's
pull this up so the background is in I
did check actually and we we covered it
in a news episode briefly but in 2018
the
FTC sent uh I guess what I'll describe
as aent assist to Asus along with
several other companies right right I I
think that that's a I don't I don't know
if that's the legal word but that
certainly describes what the FDC is
saying to Asus here um all right so I'm
just going to read a section of this and
and I'm sure you guys can put it up on
the screen here but the ftc's division
of marketing practices has reviewed
written warranty materials related to
products offered by Asus tech computer
Inc Asus available on asus's website
asus.com a website that markets phones
computers and other products to
Consumers staff has concerns about
certain representations your company is
making regarding its warranty coverage
staff is particularly concerned about
the following elements in asus's ridden
warranty quote the warranty applies to
Firmware issues but not to any other
software issues or customer induced
damages or circumstances such as but not
limited to the product has been tampered
with repaired Andor Modified by
non-authorized Personnel the warranty
seals have been broken or altered and
this is one of six letters that the FTC
sent to companies including Sony and
Nintendo and M Microsoft and HTC and
Hyundai um that basically said you can't
have these void if removed stickers or
policies like you're not allowed to tell
people that they can't open things does
it seem like there's a a situation where
Asus is in violation of some kind of FTC
rule or regulation or in other words for
all of the hundreds of people in the
audience who've emailed us just in the
last I don't know year alone it might be
more than hundreds but um for them
Beyond complaining about it to
us is there uh grounds to bring that to
an FTC complaint or or what might that
look like with that report fraud.
ftc.gov you know link yeah I don't have
the authority to say it's a violation
but you know yeah I don't think it was
the right thing to do and I think that
that it I think they have some real
exposure here um
my sense is that you know the reason why
you bring it to report fraud at
ftc.gov is twofold one this the FTC that
we have right now is really behind the
idea that we should companies should
follow the laws on the books and that
rights repair and the ability to fix
things and to protect consumers from
these kind of things is like their like
top goal so you know the C in
2021 issued an updated policy statement
and they were like yeah we're going to
go after you if you're screwing around
with warranties and that's that that
came after um like two years of
Investigation from the FTC and we
actually wrote a report where we went
and called like uh 50 Appliance
manufacturers and said hey we have this
Appliance uh I was wondering if I you
know if we were to do something and open
it up would that automatically avoid the
full warranty and 45 of the 50 you know
either said yes or they you know or
their warranty just totally said yes or
they basically implied that oh yeah 100%
you can't do that and um I was like
shocked right I remember I was working
with uh you know staff who were doing
these investigations and they were like
every day they were like I can't believe
these you know like I just read the law
and then I called the company and
they're just like oh yep no that law is
doesn't apply to us and so I think I
think it's been a while um since the FDC
had brought a case like this and so they
FDC ended up doing an investigation and
and and filing these uh I guess you know
orders of agreement with uh
Harley-Davidson Westinghouse and Weber
grills for illegally violating the terms
of the warranty and they had to come up
with a whole plan to not only stop doing
it but to like proactively like put up
disclosures at their stores and yeah
what what's the threshold I mean how
many people realistically need to be
affected and file a complaint to
actually get someone's attention right
like is is it thousands of people is it
I don't think so like I mean so what if
you look at what happened for us and
when when we started hearing from
Farmers right MH that they couldn't fix
their equipment that there was special
software and that every single time
anything went wrong the dealership
technician had to drive to their farm
and plug in a laptop and hit a button
and then all of a sudden everything
worked again right for 1,200 bucks MH um
we started hearing that story and so
okay you hear that story colloquially
you know you it's an anecdote you don't
know how how much this happens and then
at first we had two or three people
willing to go on record and talk to the
media about this and then their story
like you we have one person right and
then we have a couple other people and
then by the time we had like 50 people
it was like obvious like this thing was
happening and uh you know I would say
and then kind of you get past a 100 it's
obviously a systemic problem right if
Asus has done this exact thing to more
than 100 people and the FTC has receipts
about it that is enough for them to go
after it to investigate I mean and
probably lower than that but I would say
like if yeah I'm you know you were
showing me your phone and you're just
there was just email after email after
email of people with complaints if all
those people filled out this form 100 %
the FTC would do something what does
that look
like well so you you'd have to look at
what happened with you know
Harley-Davidson as the most recent
example right where they would come in
and say okay what are your processes how
do you handle these warranty claims they
have their investigators go in they look
at the process they evaluate it they
compare it to their objective
information that they've gotten from
customer complaints and other
information other other
testimony and they turn the screws until
they get exact they get all the
materials you know they can try to
figure out like has have there been
economic calculations about like maybe
if we turn away this number of repairs
that we should probably cover will make
this much more money you know that
information you know that the FTC has
powers to investigate and to get that
kind of information and something that
if it really is this uh um widespread
there's going to be communication
between the executives about what to do
how this is happening you know all of
that the training materials that they
use for their there's so much that that
could help the FTC evaluate and they can
really serve as an
independent you know body that says
what's your
process that's not good does the FTC
then prescribe you do they give them a
prescription like here's what you need
to do or and and if you don't do it by
this date then something happens yes
okay I
mean this they their job is to remedy
the situation and they are
experienced in doing that with companies
that they don't necessarily have a huge
amount of trust with so what they're
what they would do is you know they
would have you know kind of firm uh
objective standards for kind a behavior
and a a timeline to do it and this is
what you can see and then they kind of
come to basically an agreement with the
company that deescalate you know so if
the if the if Asus tells the FTC to go
kick rocks I do not think that it's it's
in their self-interest to do that
there's a whole set of reasons why you
know you a very powerful FTC and an
important you know Mark like probably
the most important Market that Asus has
they're not going to just
throw it away yeah they they're they're
gonna they're going to it'll be in their
self-interest to resolve this with as
little damage to the brand as they can
possibly get and uh you know I think
it's it's in our interest to make sure
that that the that that that Tipping
Point comes quickly right right you know
and and then the FTC will just make sure
that yeah if you look at the if the the
agreement that was signed by
Harley-Davidson or whatever you can see
oh yeah they had to do a lot and um
including apologize and list yeah I
think I think there's disclaimers in the
stores now like you know we're not
allowed to do this thing with warranties
anymore cuz it was pretty widespread
that they were telling customers if you
get that aftermarket equipment for your
bikes I mean this is motorcycles like
people of course you know have different
attachments I mean it's like the whole
culture like just like gaming it's the
whole culture like oh you were saying
that for your car you have a bike rack
you you like a mountain bike and you
have a bike racker your car and your car
the car maker tried to tell you that it
would void your warranty to put on that
is yeah I seem to be a magnet for
warranty problems uh the hair yeah yeah
cuz even outside of this yeah when I was
speaking with the the uh manufacturer
about it they're like well that voids
the warranty and we didn't we didn't
discuss how much might this hitch be
carrying in terms of the capacity you
know it's a bike we're talking like 20
30 lbs or something
uh which seems ridiculous like void the
entire warranty because you've bolted
something into the back of the vehicle
yeah and it it the thing that's so
frustrating about these kind of cases is
it doesn't really hurt the
manufacturers that much there's not that
much risk for them to
just vaguely imply or threaten or you
know say oh you can't do that because of
the warranty
mhh then it becomes a very different
situation if they were like if you did
have a problem and you know you had a
head gasket failure and they're like oh
we're not going to fix your head gasket
fa bike rack on the back a bike rack on
the back oh there's your problem and it
avoids a warranty according to these you
know rules that we made up for ourselves
like that they obviously wouldn't do
that but maybe they can talk you out of
doing something that you want to do
because you just you
don't I think people have the wrong
sense of how the power Dynamic works
like they think that like oh these
manufacturers hold all the cards and I'm
just this little consumer and I just
have to let them just like smack me
around right and the truth is we have
all kinds of ways to smack them around
and if you kind of have if you know that
if you have that attitude like no no no
you're not going to do that to me that's
not not within your rights the
manufacturers will probably back off
pretty quickly and I think it's
important for you know for for this
Channel and for people like you know
people who are doing this work and
educating people like to remind people
in this country that like yeah we have
this thing we have this Society it's a
democracy we actually set the rules the
people and uh like we don't we shouldn't
just give up now we still have these
like every day we still have the power
to to organized Society free Society
like this we should take advantage of it
because you know it's definitely not
guaranteed not many people in human
history have had the had that right and
I think it's awesome like I can make
Google extend the life of Chromebooks
with you know my friend my friend Lucas
and and that's like that's great like
that's what the world needs okay so any
additional resources for people places
to go yeah well I I definitely encourage
people to check out um you know the
right repair campaign in my organization
at p.org um you know it's really
important uh you know to have Advocates
that are working on your behalf to help
solve these problems I mean that's what
I do professionally but I can only do
that you know because you know people
like your audience you know supports
what we do joins our email list takes
action with us so I'd encourage people
to you know take action with a group to
become members of perg and and to help
us to do more for you know the people in
the country and as another Point too uh
so for in the past we've worked with the
eff the Electronic Frontier Foundation
um I forget the the specifics when we
worked with them but there was an
important campaign of some kind it may
have been net neutrality we did an
interview with some people yeah so uh
Consumer Reports is another one uh so
we'll we'll link some resources below
for wants to check them out and thank
you for joining me yeah thanks so much
we'll see you all next time
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