Asked by Fahim Sultanzada on May 06, 2024

verifed

Verified

Pesky,Inc.employs numerous sales representatives who attempt to sell the company's products door-to-door.All of the products sold in this manner are designed for use in the home.They range in price from $29.95 to $149.95.Each Pesky sales representative has been instructed to provide customers the address from which warranty information about Pesky's products may be obtained.The sales representatives give customers this address before the sale of any product takes place.The FTC has sued Pesky in federal court,requesting appropriate injunctive relief on the theory that Pesky's practices (as just described)do not comply with the Magnuson-Moss Act and its implementing regulations.Is the FTC's position correct? Explain.

Magnuson-Moss Act

A federal law enacted to protect consumers from deceptive warranty practices, improving the enforceability of warranties on consumer products.

Injunctive Relief

A court order requiring a party to do or to refrain from doing specific acts.

  • Comprehend the control and breadth of the Federal Trade Commission's (FTC) influence in consumer protection and the prevention of unfair competition.
  • Become familiar with the legal safeguards and approaches utilized by entities in response to fraudulent advertising inquiries by the FTC.
verifed

Verified Answer

SS
Sarmed ShafiMay 10, 2024
Final Answer :
The FTC's position is correct.The Magnuson-Moss Act and its accompanying regulations are applicable because Pesky's products are of the consumer variety and cost more than $15.The pre-sale availability regulations require that prospective buyers in door-to-door sales settings be informed that the sales representative has copies of the seller's warranty for their inspection.These regulations also require warrantors to provide door-to-door sellers with the copies of the warranty that they need to meet the foregoing obligation.On the facts of this problem,Pesky would be both the seller and the warrantor.The practice of merely providing the address from which warranty materials may be obtained is insufficient to satisfy Pesky's duties.