ASUS Already On Government's Radar for Warranty Issues

Gamers Nexus
29 May 202434:40

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

  • ๐Ÿ“‹ Asus has reportedly mistreated over a hundred customers with warranty issues, and the FTC has evidence of these actions.
  • ๐Ÿ“ฒ The speaker offered to help Asus address customer complaints but was rejected, which is seen as a sign of disregard for customer satisfaction.
  • ๐Ÿ›ก๏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.
  • ๐Ÿ“ The toolkit includes legal definitions, explanations of consumer rights, templated replies for warranty claims, and guidelines on documenting devices and manufacturer interactions.
  • ๐Ÿ“š The video discusses consumer rights and protections, with a focus on US-specific laws, but also mentions broader principles applicable elsewhere.
  • ๐Ÿ”— A Google form has been provided for Asus customers to compile evidence of warranty issues in a standardized way for potential FTC action.
  • ๐Ÿ‘• 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.
  • ๐Ÿ”Ž The speaker intends to investigate other manufacturers' warranty practices beyond Asus and has conducted undercover warranty investigations in the past.
  • ๐Ÿค The video emphasizes the importance of market leaders like Asus setting a positive example for customer support, which can influence the entire industry.
  • ๐Ÿค” 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

00:00

๐Ÿ“œ 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.

05:04

๐Ÿ›ก๏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.

10:05

๐ŸŒŸ 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.

15:06

๐Ÿ› ๏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.

20:08

๐Ÿ“ 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.

25:08

๐Ÿค 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.

30:11

๐Ÿ—ณ๏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

๐Ÿ’กFTC

The Federal Trade Commission (FTC) is a U.S. government agency that enforces consumer protection laws to prevent unfair and deceptive business practices. In the video, the FTC is mentioned as a regulatory body that could potentially take action against Asus for its warranty practices, indicating the role of government in consumer protection.

๐Ÿ’กConsumer Rights

Consumer rights refer to the legal rights designed to protect consumers from unfair treatment by businesses. The video discusses consumer rights in the context of warranty issues, emphasizing the importance of being informed about one's rights as a consumer, especially when dealing with companies like Asus that may not be honoring warranty claims appropriately.

๐Ÿ’กWarranty

A warranty is a guarantee provided by manufacturers or sellers that promises to repair or replace defective products within a certain period. The script focuses on warranty issues, particularly the problems consumers face when companies like Asus allegedly deny valid warranty claims, which is central to the video's theme of consumer advocacy.

๐Ÿ’กAsus

Asus is a multinational company known for its computer hardware and electronics. The video script discusses multiple instances where Asus has allegedly failed to honor its warranty commitments to customers, making Asus a key player in the narrative of consumer rights violations.

๐Ÿ’กRight to Repair

The right to repair is a consumer rights movement advocating for the ability of consumers and third-party repair shops to fix electronic devices instead of being forced to replace them. Nathan Proctor from the Public Interest Research Group (PIRG) discusses this concept in the video, emphasizing the importance of repairability and fair warranty practices.

๐Ÿ’กMagnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act is a U.S. federal law that governs warranties and guarantees on consumer products. The script references this act when discussing warranty laws and how companies like Asus may be violating them by denying warranty claims on consumer products.

๐Ÿ’กNon-Apology

A non-apology is a statement that appears to be an apology but does not admit fault or take responsibility. The video mentions Asus's non-apology, which is an example of a company's response to consumer complaints that does not adequately address the issues raised by consumers.

๐Ÿ’กConsumer Advocacy

Consumer advocacy involves actions taken to protect consumers' rights and interests. The video script details the efforts of the host and the Public Interest Research Group to advocate for consumers' rights, particularly in the context of warranty and repair issues with Asus products.

๐Ÿ’กTemplated Replies

Templated replies are pre-written responses that can be used to communicate in a standardized way. The video mentions the creation of a warranty click toolkit with templated replies to help consumers navigate warranty claims more effectively, showing a practical approach to consumer education and support.

๐Ÿ’กSystemic Problem

A systemic problem refers to an issue that is deeply rooted within a system or process. The script uses this term to describe the recurring nature of warranty issues with Asus, suggesting that the problem is not isolated but rather a pattern of behavior by the company.

๐Ÿ’กMarket Leader

A market leader is a company that holds the dominant position in its market. The video encourages Asus, as a perceived market leader in certain product categories, to set a positive example for consumer treatment and warranty fulfillment, impacting the entire industry's approach to customer service.

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

00:00

if Asus has done this exact thing to

00:02

more than a 100 people and the FTC has

00:04

receipts about it that is enough for

00:07

them to go after him you know you were

00:09

showing me your phone and you're just

00:10

there was just email after email after

00:12

email of people with complaints if all

00:14

those people filled out this form 100%

00:17

the FTC would do

00:19

something acus has posted a second

00:22

apology it's the classic recursive

00:24

apology apology from a corporation after

00:26

it's non-apology where it's apologizing

00:28

for that non-apology so we're not going

00:29

to give the light of day it mostly says

00:31

the same stuff there's nothing concrete

00:33

or substantially different in it it's a

00:35

longer version that is less accusatory

00:38

but it basically says the same thing so

00:40

uh this video is not only about Asus

00:42

we're going to be talking about how to

00:43

protect yourself from getting screwed as

00:44

a customer talking about some of your

00:45

consumer rights some of this is very us

00:47

specific some of it is wider reaching

00:49

applies basically anywhere we're in the

00:51

US those are the laws that are the

00:53

easiest for me to research and

00:54

understand uh but as far as the Asus

00:57

part because we do want to close it that

00:59

story line This is basically part three

01:01

it might be the final for now uh again

01:03

we did a a similar thing last year with

01:06

them so there's always room for more

01:08

especially with Asus and we'll see maybe

01:11

we talk to them in the future but just

01:13

to get it out there publicly I asked

01:15

Asus if I could try to help them with

01:18

their own customers by which I meant hey

01:22

I have an inbox full of very upset Asus

01:25

customers I would like to help you help

01:27

them and they rejected the offer which

01:31

is cowardice and uh in my opinion anyway

01:35

and in the very least kind of shows what

01:37

they think of their own customers um so

01:40

anyway what we're doing now this because

01:42

this does go beyond Asus we can do

01:44

something productive and help some of

01:46

the people with all of these warranty

01:48

issues in general uh maybe even get some

01:51

policy passed that's kind of one of the

01:53

next things I'm starting to look into

01:55

but we have something for you all first

01:57

so we've created a warranty click

02:00

toolkit on the gamers nexus.net website

02:02

this is freely available there are no

02:04

ads on the page for any thirdparty

02:06

services and this web page contains some

02:08

legal definitions some explanations for

02:10

a US audience to inform you of your

02:12

rights but it also contains templated

02:14

replies that you can use in any region

02:17

and adapt for your own warranty claims

02:19

these are written to help you get a

02:21

productive and hopefully Speedy response

02:23

to your warranty issues with any

02:24

manufacturer we also have guidelines on

02:26

how to document your device suggestions

02:29

on how you could confirm everything in

02:31

writing and seek manufacturer guidance

02:33

every step of the way so they can't

02:34

you out of a claim and how it's

02:36

a push back against rejections of valid

02:39

claims if you happen to face one like we

02:41

did our hope is that with this

02:42

information you'll have some confidence

02:44

to be able to successfully push back in

02:46

many common scenarios of rejection of a

02:48

valid claim and we've even pointed you

02:50

towards if you're in the US at least a

02:51

couple of laws that you can reference to

02:54

maybe just get escalated to a supervisor

02:56

and have it resolved further we're

02:57

compiling a report with the public

02:59

interest interest research group they

03:00

were recommended to me by LS Rosman

03:02

Nathan Proctor from it's pronounced perg

03:05

will be joining us today in most of this

03:07

video to talk about consumer rights so

03:09

the goal here is consumer education uh

03:12

and just trying to help people as much

03:14

as possible when the company is uh

03:17

acting in the way that Asus is so we're

03:19

also going to be filing that report that

03:21

we are working on which is Asus specific

03:24

with the Federal Trade Commission so I

03:25

am going to be either personally

03:27

submitting it or submitting it to the

03:29

public interest research group who will

03:31

then bring it up as high as I can to the

03:33

FTC these reports are pretty powerful so

03:35

they are important now for everyone in

03:37

our audience who has had an Asus

03:38

warranty issue even if you've already

03:40

emailed it to us and thank you we have

03:42

lots of them now please also visit this

03:44

genius link on the screen it's GE ni.

03:49

us/ Asus claim that's just a link

03:53

shortener so g. us/ Asus claim and that

03:57

will bring you to a Google form we've

03:59

created the goal of this is to compile

04:01

evidence in a quickly referenceable and

04:04

standardized way so a form so that we

04:07

can use it going forward such as if we

04:09

want to bring any of these matters to

04:11

the attention of the FTC before that we

04:14

brought you this video our limited foil

04:16

cyers skeleton V2 shirt directly helps

04:19

fund our consumer advocacy and Reporting

04:21

efforts it features a skeletal outline

04:23

on the front comprised of PC components

04:25

pcie slots RGB strips water cooling

04:28

tubes and fittings and a pump pump block

04:30

heart the back has a spine made of

04:32

mosfets inductors and vrm components and

04:35

both sides have a shiny brilliant golden

04:37

blue foil with an updated fit from our

04:40

original artisian variant of the shirt

04:42

so if you want one and want to support

04:43

us head over to store. Gamers access.net

04:46

this issue goes far beyond Asus and

04:48

we'll be investigating other

04:49

manufacturers as well we've done a lot

04:50

of undercover warranty investigations

04:51

over the years Intel for example was one

04:54

of them in the past uh but I have

04:56

something to say to Asus directly as we

04:58

kind of close out their part of the

04:59

story line so our objective is for Asus

05:03

to be better and the reason I want Asus

05:05

to be better is not for Asus it's for

05:08

the customers or our viewers because our

05:11

really primary objective at GN is

05:14

consumer Focus who typically has the

05:16

least power in the whole chain of events

05:19

uh and if by the way of helping

05:22

consumers Asus also betters its own

05:24

reputation it gets some marketing then

05:26

great everyone's happy and Asus that is

05:30

our goal there is no other goal here so

05:34

if you claim to be a leader in the

05:36

market like you do then set the example

05:40

by sales Asus you are the leader in many

05:43

of these markets and no one is in a

05:46

better position to support the customer

05:48

than Asus they shouldn't feel threatened

05:50

by their competitors at least in things

05:52

like motherboards even handhelds they're

05:54

doing pretty well compared to their

05:55

competition uh regardless of total

05:57

market sales so if as if you suddenly

06:00

support your customers properly then all

06:03

of the manufacturers who compete with

06:05

you such as gigabyte ASRock MSI other

06:09

motherboard vendors they are going to

06:11

have to follow in order to compete

06:14

that's the great thing about when the

06:16

market leader does something right

06:18

everyone else is going to have to follow

06:20

it to compete whereas if someone smaller

06:23

does it that might just give them an

06:25

opportunity to Leap Frog Asus eventually

06:27

and get to the top so this can only help

06:30

Asus and we really want you Asus to set

06:35

the right example okay let's get into it

06:37

so we want to create a somewhat

06:38

permanent referential resource for you

06:40

to check for help with your warranty

06:42

claims it has basic guidelines how do

06:43

you successfully file a claim this is

06:45

assuming of course you have a valid

06:46

claim uh and that it's not a scam

06:50

because companies have to plan for that

06:51

too which we can respect and understand

06:53

that but the way to plan for that though

06:55

is not to just turn around and scam the

06:57

customer instead so there's the line to

06:58

be drawn we have the website page that's

07:01

made we're going to update that whenever

07:02

we think of something new to add some

07:04

kind of advice or suggestions to post

07:06

there so that's supposed to just be

07:08

there forever for you to help out

07:09

bookmarket or whatever for when you have

07:11

a warranty claim in the future uh

07:14

consumer rights differ between countries

07:15

as I said our focus is mainly the US

07:17

it's the market we're in selfishly uh

07:20

and it's the one I'm the most competent

07:21

about in terms of having access to

07:23

lawyers or people who know the laws so

07:25

we can inform ourselves so that's our

07:27

main focus but there's some generic

07:29

stuff in there too for everybody now uh

07:32

this video mostly is focused on an

07:34

interview with Nathan Proctor from the

07:36

public interest research group or again

07:37

perg uh again recommended by Lewis

07:40

Rossman and it's a companion piece to

07:43

our interview with attorney Vincent

07:45

Augusta where we discussed warranty laws

07:47

in the US Magnus and Moss the act from I

07:51

think it was the 1970s and some consumer

07:54

rights there so we've got these two

07:55

pieces where what we're trying to do

07:57

again is really take the opportunity to

07:59

to provide consumer education that is my

08:01

personal objective here because you know

08:03

this Asus thing uh it it sucks that

08:05

they're doing this it is upsetting and

08:08

it's frustrating at the same time

08:10

there's kind of a limit to how far you

08:12

can get with being frustrated and so the

08:14

thing to do once you hit that limit is

08:16

to try and turn it into education that

08:18

can be used broadly not just for this

08:20

one instance that we've been reporting

08:22

on so that's what we're doing here today

08:24

again to reference the article so it

08:26

talks through several of these aspects

08:27

we'll leave most of them there for you

08:29

to just read if you ever need it as one

08:31

example though we have some details on

08:32

how to convert a warranty support phone

08:34

call into something in writing so

08:36

everyone's on the same page that way

08:38

this is something that attorney Vincent

08:39

Augusta recommended in our discussion

08:42

with him where he's talking about

08:43

getting everything written down so the

08:44

manufacturer the customer everyone knows

08:47

what's supposed to happen here our guide

08:49

for example says to reaffirm with the

08:50

support rep on the phone that you

08:52

understand the agreement or the next

08:53

steps properly read it back to them from

08:55

your notes and then ask for their email

08:58

or a general support inbox so that you

09:00

can follow up at which point you would

09:02

confirm this understanding send the note

09:04

say just confirming that this is what we

09:06

agreed upon or what the next steps are

09:08

and that allows you to get it into some

09:10

form of writing now of course they can

09:12

respond and disagree but at least that's

09:14

written down and you can take it from

09:16

there now the reason for doing all this

09:17

or the I don't know the underlining

09:20

principle for GN from our sort of

09:22

standpoint is uh gan's grown enough at

09:24

this point and I've grown dissatisfied

09:26

enough with how a lot of these not all

09:27

of them but a lot of the companies

09:28

handle these situations where we're

09:30

starting the process of taking our

09:32

findings as far up the chain as we can

09:35

so you at first it was kind of talking

09:36

to lawyers about it getting some on

09:38

camera discussion educate the audience

09:40

and it's getting people like Nathan

09:41

Proctor on today to talk about even more

09:44

of the consumer right side but the next

09:47

step that I'm starting to look at is the

09:49

process of taking some of our findings

09:51

for things like this Asus claim and

09:53

whatever else we uh may run into to

09:56

lawmakers so I've already begun that

09:58

process of uh basically figuring out who

10:02

we want to connect with on the Congress

10:04

or Senate side of things who makes the

10:06

most sense to talk to I'm sure I'll be

10:08

having conversations with perg with Le

10:10

Rossman anyone else who can point me the

10:11

right direction who has experience with

10:12

it uh and also I'll be contacting the

10:15

Federal Trade Commission just in general

10:16

so not necessarily for Asus although

10:19

that's an option too but just more of a

10:21

hey I'd like to establish a line of

10:23

communication kind of like we did with

10:24

the US consumer protection the US cpsc

10:28

which is an agency

10:29

um that we worked with for the NZXT

10:32

cases catching on fire issue uh kind of

10:35

like that except on some of this

10:37

warranty and support side of thing so

10:39

that's kind of what we're looking at

10:40

right now which is because we've we've

10:41

done this enough we've complained enough

10:43

and um the goal isn't to just complain

10:46

it's to actually get something done and

10:48

if the companies aren't going to do it

10:49

themselves then we'll find a way to make

10:51

them do it that's that's where we're

10:53

going with it so anyway I want to

10:55

briefly talk about two times

10:56

specifically that we've covered where a

10:58

company did exceptionally well with a

11:00

warranty type issue the reason I'm

11:02

bringing these back up is because I want

11:03

to set a road map where Asus or just you

11:06

all anyone can look at it and say all

11:08

right we get it what do you want Steve

11:11

and there's two examples Arctic and

11:14

fractal both did phenomenally with their

11:16

own warranty issues they were of

11:17

different severities so uh quick recap

11:20

we already covered them in Fall we'll

11:21

link them below if you want those

11:22

details but Arctic had an issue with

11:24

corrosion of its one of its liquid

11:27

freezer 2 Series of pumps so the

11:28

previous generation they had a serial

11:30

number range and they actually contacted

11:33

us before we found out about it on our

11:35

own which is amazing already and they

11:37

said we' found this big problem uh the

11:40

pumps are getting gunked up and it's

11:42

causing temperatures to be too high or

11:44

feasibly could cause failure of the

11:46

liquid cooler product so they told us

11:48

about it they explained what the issue

11:50

was they I think gave me like some kind

11:53

of I x-ray analysis materials analysis

11:55

or whatever of the failure and with all

11:59

that detail they then said here's what

12:01

we would like uh we want everyone to

12:04

know about this and that's awesome

12:06

because their feeling was they want the

12:09

customer to have a good experience with

12:10

the product they would hate for anyone

12:11

to have this problem and not know they

12:13

can get help for it or that it's an own

12:14

issue and so they did a uh an option

12:18

where you could either send it in to get

12:19

repaired or you could take a repair kit

12:20

and repair it yourself and that was

12:22

great handled excellently um really

12:26

professional handling of that fractal

12:28

had an issue similar to XTS where it had

12:29

a PCB and I believe it was the torrent

12:32

that was uh a poor design and could

12:35

short in a way that could potentially

12:37

cause it to uh burn or maybe even catch

12:41

fire if you have the wrong conditions

12:42

just like the H1 fractal also contacted

12:45

us in advance and they said we have this

12:48

problem we are pulling all of the

12:49

shipments of the torrent back this is

12:51

like before it was really fully hitting

12:52

the market and we're fixing all of them

12:55

and we'll send them back out again with

12:56

the fixed one so those are two examples

12:58

not going to get them further we have

12:59

videos on them but the point is that

13:01

companies can do stuff well and I

13:04

actually I won't specify which one but I

13:06

spoke with one of those two companies

13:07

after it was all said and done and I

13:09

said so how'd it work out and they said

13:11

well we fixed all the claims and

13:13

actually our sales increased so much

13:15

that it even covered the cost of fixing

13:17

everything which is awesome because

13:20

companies should be recognized and

13:23

rewarded for doing the right thing like

13:25

that that is exactly how the system

13:27

should work and uh I I hope that's

13:30

encouraging for Asus to look at this and

13:32

go maybe we need to recalculate how we

13:35

view warranty claims and if they don't

13:37

if large corporations don't then keeping

13:40

in mind that you know these smaller

13:41

companies have the mobility and they

13:42

have the motive to act in the interest

13:44

of the consumers whereas large

13:45

corporations will be more calculating

13:47

and one thing that changes that

13:49

calculation is laws and policy and

13:52

legislation and things where it now

13:55

there is a potential uh punitive aspect

13:58

to it

13:59

and that that Waits the outcome for the

14:02

consumer enough of that so closing out

14:04

on the Asus side of things specifically

14:05

if you've been affected by their

14:07

warranty processes in the past even or

14:08

especially you emailed us please fill in

14:11

the survey we've linked the emails are

14:13

not going to be used for any kind of

14:15

marketing uh it is explicitly so that we

14:17

can collect data in a spreadsheet so the

14:20

inbox doesn't doesn't automatically sort

14:22

of spread sheet if I it uh and use that

14:25

to communicate with say the FTC and try

14:28

to help explain to them what is

14:31

happening in this segment of the market

14:33

and try to get something done about it

14:35

um for now though let's get into the

14:37

discussion with Nathan Proctor remember

14:38

this can be applied to other companies

14:40

it's an educational piece includes

14:42

details on how you can get involved as

14:44

well if you'd like uh uh if this all

14:47

motivates you so let's jump over to it

14:49

okay so now I am joined by Nathan

14:51

Proctor and you were recommended to me

14:54

by Lewis Rossman okay before we get into

14:56

some of the details a little bit of your

14:58

background I think would help help and

15:00

kind of where you've worked you know

15:01

within this field I am the senior

15:04

national campaign director for the perg

15:06

public interest research groups Network

15:08

working on right repair advocacy I've

15:11

been working on right repair almost

15:12

exclusively for seven years okay so some

15:15

of the campaigns you've worked on one

15:19

example you gave with the Chromebooks

15:21

give me some hope give me give me some

15:23

kind of optimism of like what is

15:26

something that has worked yeah and what

15:29

you know what does that look like at the

15:31

end you know Google is definitely a

15:33

bigger company than Asus right we were

15:36

starting we started getting calls in

15:37

like 2021

15:39

2022 from people who are at schools who

15:42

were having a lot of trouble keeping

15:44

Chromebooks in use and there's a whole

15:46

slew of problems that they had um you

15:50

know one of the big ones was that

15:52

Chromebooks have an end of support date

15:54

like an automatic expiration date for

15:57

the the security off for the security

15:59

updates that they provide um and this is

16:01

baked in like when they approve the

16:04

build at the very start of the process

16:06

you're going to get this much time after

16:08

which you won't get security updates and

16:11

the problem with that for schools is

16:13

mostly they use uh they need these

16:16

computers to be able to connect to these

16:18

secure State testing sites as well as

16:20

Enterprise tools like Google Classroom

16:22

which will will not work on an unsecured

16:25

device so schools are like literally

16:27

they had thousands and thousands of

16:29

Chromebooks totally working laptops at

16:32

the time where we released that report

16:34

you could go on Amazon on Walmart and

16:37

some of these other retailers you could

16:39

buy already software expired notebooks

16:43

as brand new with no disclosure that

16:46

that you would be totally incapable of

16:47

using them on a secure platform so we we

16:50

took we or you know we did a big thing

16:53

we we told Google we were going to do it

16:55

then we did it and um you know it's a

16:58

lot of headlines

16:59

uh there's a lot of pressure on Google

17:01

we kept on moving like we had a

17:03

secondary release of like here's all the

17:05

Chromebooks you can buy that are already

17:06

expired and you know and eventually um

17:10

there was the shareholder engagement

17:12

from people who you know from

17:13

shareholders at Google and eventually

17:14

they just said okay 10 years updates and

17:17

we're going to be retroactive we're

17:19

going to cover a bunch of things that

17:20

are coming off the AE date and um you

17:24

know I mean that was some work right but

17:27

it was the right thing

17:29

we had we had enough people engaged

17:32

Google is going to act in the best

17:34

interest of Google and if you can set up

17:37

a situation where it's in Google's

17:38

self-interest to do the right thing the

17:40

thing that's beneficial for us then then

17:43

then everybody is going to you know move

17:45

forward and that that's how you win when

17:48

you're trying to figure out how to move

17:49

a big company like that so the question

17:51

for Asus

17:53

is they they might view it as in their

17:57

self-interest to forced or to coer or to

18:00

whatever they're doing to get customers

18:04

to pay for repairs they don't need you

18:07

know I think that one to me fairly

18:09

plausible Theory would be that they have

18:13

to replace a bunch of the components in

18:15

these products because they're defective

18:18

and in order to help kind of lower the

18:20

cost they're losing money on this

18:22

they're kind of trying to you know not

18:25

so subtly twist your arm into paying for

18:28

stuff you don't need right

18:30

and that could they could view that as

18:33

their

18:34

self-interest there's definitely a

18:36

situation where it's very bad for Asus

18:38

to continue doing that or to do things

18:40

like that and so I think if you want to

18:42

think about how to change Asus as

18:44

Behavior you just create the conditions

18:46

where it's cheaper and better for their

18:49

brand for their company for their you

18:51

know their mission what they're trying

18:52

to do to treat their customers better

18:55

when it comes to warranties yeah I think

18:57

even cynically we're talking about this

18:59

before we started filming but even if

19:00

you have a cynical Outlook of the

19:02

company only wants to make money you can

19:05

still approach it from that Outlook and

19:07

okay fine how do we how do we let them

19:10

do that but in a way that's better for

19:11

everybody right I mean that's that's

19:13

that's why you know regulations and laws

19:17

are such so important right if there are

19:20

no rules and that you can do

19:22

anything that means if you're ethical if

19:25

if being ethical is more expensive

19:29

then you know if you're ethical it puts

19:31

you out of business so that's why if you

19:33

want them to behave well we need to set

19:35

the rules and so that even even the

19:38

companies that want to do the right

19:39

thing they don't lose market share

19:42

because they're like they're acting

19:44

kindly and being punished for it every

19:46

company's looking at what the other

19:48

companies are doing and if like the

19:51

number one most dominant company was

19:54

like treating customers great they'd all

19:56

be like hey we should do that so that we

19:58

look good I mean I would say the other

20:00

thing that's difficult about the

20:03

warranty part of the process and this is

20:05

true this is true in WR to repair

20:07

broadly is these things are typically

20:10

happening after they've made their money

20:13

so like you've already bought the thing

20:15

right you're already in the

20:17

ecosystem you've already got all these

20:19

games that you paid for and now they

20:22

don't have to treat you as nice and

20:24

that's why I mean competition law

20:26

broadly is really important so that

20:27

customers have the ability to move

20:29

around but then you have to rec I mean

20:31

there's this thing in antitrust law

20:32

called tying which is the core of it's a

20:36

huge part of Magnuson Moss and the idea

20:37

of tying is that if you have one

20:40

purchase if you make one purchase you

20:42

shouldn't be able to coers the person to

20:44

buying another good or service right so

20:46

if I buy a car it shouldn't secretly

20:49

have a built-in Arrangement where I have

20:50

to go only to the dealership to get oil

20:53

changes because there's no other way to

20:55

do it that's viewed as an

20:57

anti-competitive ative act the FTC has

21:00

rules around tying that is the reason

21:02

why in Magnuson Moss the warranty law

21:05

federal warranty law which you guys

21:07

discussed in your last

21:08

episode it says you're not allowed to

21:11

condition someone's warranty on

21:13

exclusive use of the

21:16

manufacturer's repair services or their

21:19

materials like if it used to some kind

21:21

of consumable um like batteries you

21:24

can't say you have to use our batteries

21:27

um but you know Asus has actually

21:29

already been in trouble for this very

21:31

thing right we were discussing this

21:32

before and yeah let's pull that up let's

21:35

pull this up so the background is in I

21:37

did check actually and we we covered it

21:39

in a news episode briefly but in 2018

21:43

the

21:43

FTC sent uh I guess what I'll describe

21:46

as aent assist to Asus along with

21:49

several other companies right right I I

21:52

think that that's a I don't I don't know

21:54

if that's the legal word but that

21:55

certainly describes what the FDC is

21:57

saying to Asus here um all right so I'm

22:01

just going to read a section of this and

22:03

and I'm sure you guys can put it up on

22:04

the screen here but the ftc's division

22:06

of marketing practices has reviewed

22:08

written warranty materials related to

22:10

products offered by Asus tech computer

22:13

Inc Asus available on asus's website

22:16

asus.com a website that markets phones

22:18

computers and other products to

22:19

Consumers staff has concerns about

22:22

certain representations your company is

22:24

making regarding its warranty coverage

22:26

staff is particularly concerned about

22:29

the following elements in asus's ridden

22:32

warranty quote the warranty applies to

22:34

Firmware issues but not to any other

22:36

software issues or customer induced

22:39

damages or circumstances such as but not

22:43

limited to the product has been tampered

22:45

with repaired Andor Modified by

22:47

non-authorized Personnel the warranty

22:51

seals have been broken or altered and

22:53

this is one of six letters that the FTC

22:55

sent to companies including Sony and

22:57

Nintendo and M Microsoft and HTC and

23:00

Hyundai um that basically said you can't

23:03

have these void if removed stickers or

23:06

policies like you're not allowed to tell

23:08

people that they can't open things does

23:10

it seem like there's a a situation where

23:14

Asus is in violation of some kind of FTC

23:17

rule or regulation or in other words for

23:21

all of the hundreds of people in the

23:22

audience who've emailed us just in the

23:24

last I don't know year alone it might be

23:27

more than hundreds but um for them

23:30

Beyond complaining about it to

23:33

us is there uh grounds to bring that to

23:37

an FTC complaint or or what might that

23:40

look like with that report fraud.

23:42

ftc.gov you know link yeah I don't have

23:45

the authority to say it's a violation

23:47

but you know yeah I don't think it was

23:51

the right thing to do and I think that

23:53

that it I think they have some real

23:56

exposure here um

23:59

my sense is that you know the reason why

24:02

you bring it to report fraud at

24:04

ftc.gov is twofold one this the FTC that

24:09

we have right now is really behind the

24:12

idea that we should companies should

24:15

follow the laws on the books and that

24:18

rights repair and the ability to fix

24:22

things and to protect consumers from

24:24

these kind of things is like their like

24:26

top goal so you know the C in

24:29

2021 issued an updated policy statement

24:32

and they were like yeah we're going to

24:33

go after you if you're screwing around

24:34

with warranties and that's that that

24:36

came after um like two years of

24:38

Investigation from the FTC and we

24:40

actually wrote a report where we went

24:43

and called like uh 50 Appliance

24:46

manufacturers and said hey we have this

24:48

Appliance uh I was wondering if I you

24:50

know if we were to do something and open

24:52

it up would that automatically avoid the

24:54

full warranty and 45 of the 50 you know

24:57

either said yes or they you know or

25:00

their warranty just totally said yes or

25:02

they basically implied that oh yeah 100%

25:05

you can't do that and um I was like

25:08

shocked right I remember I was working

25:10

with uh you know staff who were doing

25:12

these investigations and they were like

25:14

every day they were like I can't believe

25:15

these you know like I just read the law

25:17

and then I called the company and

25:18

they're just like oh yep no that law is

25:21

doesn't apply to us and so I think I

25:23

think it's been a while um since the FDC

25:26

had brought a case like this and so they

25:28

FDC ended up doing an investigation and

25:31

and and filing these uh I guess you know

25:34

orders of agreement with uh

25:37

Harley-Davidson Westinghouse and Weber

25:40

grills for illegally violating the terms

25:43

of the warranty and they had to come up

25:44

with a whole plan to not only stop doing

25:47

it but to like proactively like put up

25:50

disclosures at their stores and yeah

25:53

what what's the threshold I mean how

25:54

many people realistically need to be

25:56

affected and file a complaint to

25:58

actually get someone's attention right

26:01

like is is it thousands of people is it

26:04

I don't think so like I mean so what if

26:05

you look at what happened for us and

26:09

when when we started hearing from

26:11

Farmers right MH that they couldn't fix

26:14

their equipment that there was special

26:16

software and that every single time

26:18

anything went wrong the dealership

26:20

technician had to drive to their farm

26:22

and plug in a laptop and hit a button

26:24

and then all of a sudden everything

26:25

worked again right for 1,200 bucks MH um

26:29

we started hearing that story and so

26:31

okay you hear that story colloquially

26:34

you know you it's an anecdote you don't

26:36

know how how much this happens and then

26:40

at first we had two or three people

26:42

willing to go on record and talk to the

26:43

media about this and then their story

26:46

like you we have one person right and

26:48

then we have a couple other people and

26:50

then by the time we had like 50 people

26:54

it was like obvious like this thing was

26:56

happening and uh you know I would say

26:58

and then kind of you get past a 100 it's

27:02

obviously a systemic problem right if

27:05

Asus has done this exact thing to more

27:07

than 100 people and the FTC has receipts

27:10

about it that is enough for them to go

27:13

after it to investigate I mean and

27:15

probably lower than that but I would say

27:17

like if yeah I'm you know you were

27:20

showing me your phone and you're just

27:21

there was just email after email after

27:23

email of people with complaints if all

27:25

those people filled out this form 100 %

27:28

the FTC would do something what does

27:30

that look

27:31

like well so you you'd have to look at

27:34

what happened with you know

27:37

Harley-Davidson as the most recent

27:39

example right where they would come in

27:41

and say okay what are your processes how

27:45

do you handle these warranty claims they

27:47

have their investigators go in they look

27:49

at the process they evaluate it they

27:51

compare it to their objective

27:53

information that they've gotten from

27:55

customer complaints and other

27:56

information other other

27:59

testimony and they turn the screws until

28:02

they get exact they get all the

28:03

materials you know they can try to

28:05

figure out like has have there been

28:08

economic calculations about like maybe

28:12

if we turn away this number of repairs

28:14

that we should probably cover will make

28:16

this much more money you know that

28:17

information you know that the FTC has

28:21

powers to investigate and to get that

28:23

kind of information and something that

28:26

if it really is this uh um widespread

28:29

there's going to be communication

28:31

between the executives about what to do

28:34

how this is happening you know all of

28:37

that the training materials that they

28:39

use for their there's so much that that

28:41

could help the FTC evaluate and they can

28:44

really serve as an

28:45

independent you know body that says

28:48

what's your

28:49

process that's not good does the FTC

28:52

then prescribe you do they give them a

28:55

prescription like here's what you need

28:57

to do or and and if you don't do it by

29:00

this date then something happens yes

29:02

okay I

29:03

mean this they their job is to remedy

29:08

the situation and they are

29:11

experienced in doing that with companies

29:15

that they don't necessarily have a huge

29:18

amount of trust with so what they're

29:20

what they would do is you know they

29:23

would have you know kind of firm uh

29:26

objective standards for kind a behavior

29:29

and a a timeline to do it and this is

29:31

what you can see and then they kind of

29:32

come to basically an agreement with the

29:35

company that deescalate you know so if

29:38

the if the if Asus tells the FTC to go

29:41

kick rocks I do not think that it's it's

29:44

in their self-interest to do that

29:46

there's a whole set of reasons why you

29:48

know you a very powerful FTC and an

29:53

important you know Mark like probably

29:54

the most important Market that Asus has

29:56

they're not going to just

29:59

throw it away yeah they they're they're

30:01

gonna they're going to it'll be in their

30:03

self-interest to resolve this with as

30:06

little damage to the brand as they can

30:08

possibly get and uh you know I think

30:10

it's it's in our interest to make sure

30:13

that that the that that that Tipping

30:16

Point comes quickly right right you know

30:18

and and then the FTC will just make sure

30:20

that yeah if you look at the if the the

30:22

agreement that was signed by

30:23

Harley-Davidson or whatever you can see

30:25

oh yeah they had to do a lot and um

30:27

including apologize and list yeah I

30:30

think I think there's disclaimers in the

30:32

stores now like you know we're not

30:34

allowed to do this thing with warranties

30:35

anymore cuz it was pretty widespread

30:36

that they were telling customers if you

30:39

get that aftermarket equipment for your

30:41

bikes I mean this is motorcycles like

30:43

people of course you know have different

30:44

attachments I mean it's like the whole

30:47

culture like just like gaming it's the

30:49

whole culture like oh you were saying

30:51

that for your car you have a bike rack

30:55

you you like a mountain bike and you

30:57

have a bike racker your car and your car

30:59

the car maker tried to tell you that it

31:00

would void your warranty to put on that

31:02

is yeah I seem to be a magnet for

31:06

warranty problems uh the hair yeah yeah

31:10

cuz even outside of this yeah when I was

31:12

speaking with the the uh manufacturer

31:15

about it they're like well that voids

31:16

the warranty and we didn't we didn't

31:19

discuss how much might this hitch be

31:21

carrying in terms of the capacity you

31:23

know it's a bike we're talking like 20

31:26

30 lbs or something

31:28

uh which seems ridiculous like void the

31:30

entire warranty because you've bolted

31:33

something into the back of the vehicle

31:36

yeah and it it the thing that's so

31:38

frustrating about these kind of cases is

31:41

it doesn't really hurt the

31:42

manufacturers that much there's not that

31:45

much risk for them to

31:48

just vaguely imply or threaten or you

31:51

know say oh you can't do that because of

31:53

the warranty

31:54

mhh then it becomes a very different

31:56

situation if they were like if you did

31:59

have a problem and you know you had a

32:01

head gasket failure and they're like oh

32:03

we're not going to fix your head gasket

32:04

fa bike rack on the back a bike rack on

32:06

the back oh there's your problem and it

32:09

avoids a warranty according to these you

32:11

know rules that we made up for ourselves

32:13

like that they obviously wouldn't do

32:15

that but maybe they can talk you out of

32:17

doing something that you want to do

32:19

because you just you

32:21

don't I think people have the wrong

32:23

sense of how the power Dynamic works

32:25

like they think that like oh these

32:27

manufacturers hold all the cards and I'm

32:29

just this little consumer and I just

32:31

have to let them just like smack me

32:32

around right and the truth is we have

32:35

all kinds of ways to smack them around

32:38

and if you kind of have if you know that

32:40

if you have that attitude like no no no

32:42

you're not going to do that to me that's

32:43

not not within your rights the

32:45

manufacturers will probably back off

32:46

pretty quickly and I think it's

32:49

important for you know for for this

32:52

Channel and for people like you know

32:54

people who are doing this work and

32:55

educating people like to remind people

32:58

in this country that like yeah we have

32:59

this thing we have this Society it's a

33:01

democracy we actually set the rules the

33:04

people and uh like we don't we shouldn't

33:09

just give up now we still have these

33:10

like every day we still have the power

33:13

to to organized Society free Society

33:15

like this we should take advantage of it

33:17

because you know it's definitely not

33:19

guaranteed not many people in human

33:20

history have had the had that right and

33:23

I think it's awesome like I can make

33:26

Google extend the life of Chromebooks

33:28

with you know my friend my friend Lucas

33:30

and and that's like that's great like

33:33

that's what the world needs okay so any

33:36

additional resources for people places

33:38

to go yeah well I I definitely encourage

33:40

people to check out um you know the

33:42

right repair campaign in my organization

33:45

at p.org um you know it's really

33:47

important uh you know to have Advocates

33:50

that are working on your behalf to help

33:51

solve these problems I mean that's what

33:53

I do professionally but I can only do

33:55

that you know because you know people

33:57

like your audience you know supports

33:59

what we do joins our email list takes

34:01

action with us so I'd encourage people

34:03

to you know take action with a group to

34:05

become members of perg and and to help

34:07

us to do more for you know the people in

34:09

the country and as another Point too uh

34:13

so for in the past we've worked with the

34:15

eff the Electronic Frontier Foundation

34:18

um I forget the the specifics when we

34:20

worked with them but there was an

34:22

important campaign of some kind it may

34:24

have been net neutrality we did an

34:25

interview with some people yeah so uh

34:29

Consumer Reports is another one uh so

34:31

we'll we'll link some resources below

34:34

for wants to check them out and thank

34:36

you for joining me yeah thanks so much

34:38

we'll see you all next time

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