The Auto Care Association, Automotive Oil Change
Association, Service Station Dealers of America and
Tire Industry
Association have joined forces to call on the
Federal Trade Commission (FTC) to take immediate action to have Kia withdraw a
technical bulletin warning consumers not to use non-OEM filters, which the
associations claim is a violation of the Magnuson-Moss Warranty Act (MMWA).

The bulletin, which was referenced in an
article posted by Consumer Reports, recommended that car owners either
go back to the authorized dealer or use a Kia oil filter to avoid problems with
oil- and filter-related warranty claims.

Two years ago, the four associations
submitted a complaint to the FTC regarding a technical service
bulletin from Kia that authorizes dealers to deny warranty coverage simply
based on the use of an aftermarket filter without any determination that the
filter actually caused the problem with the vehicle. The letter pointed out the
fact that this practice is a violation of the MMWA. Specifically, the letter
stated:

The MMWA manufacturer’s burden of proof
is not that it need merely show an aftermarket part “relates” to damage, but
that it “caused” any alleged damage. As the FTC states in its consumer alert:
“The Magnuson-Moss Warranty Act makes it illegal for companies to void your
warranty or deny coverage under the warranty simply because you used an
aftermarket or recycled part.” The alert goes on to say that if there is a
problem with use of an aftermarket part or how it was installed, the
manufacturer or dealer may deny a warranty claim. However, the manufacturer
must first “show that the aftermarket or recycled part caused the need for
repairs before denying warranty coverage.” Kia’s directives circumvent this
process entirely: the mere presence of an aftermarket oil filter automatically
voids warranty coverage for the oil change parts and services as well as any
damage Kia says “relates” to oil filter function.

The May 27, 2014 letter to the FTC
states, “Despite the complaint, the FTC has yet to do anything to enforce the
MMWA requirements with Kia. Now, Consumer Reports (CR) is further
promoting the Kia technical bulletin in an article that has been seen on the Yahoo’s front
page, as well as other locations. If there was any doubt about how the
technical bulletin is being interpreted by consumers, one only needs to read
the recommendations from CR for motorists with Kia vehicles under warranty.”

The Consumer Reports article
states:

1. When dropping your car off for service,
make sure you don’t authorize the dealer to perform repairs without speaking
with you first. This way you won’t get a surprise bill for an oil and filter
change.

2. If your Kia is still under the
powertrain warranty, considering taking it to the dealer for oil changes. Yes,
it probably costs more than the quick-lube store, but you’ll avoid any
potential problems with oil- and filter-related warranty claims.

3. Consider buying Kia-approved oil
filters and either using them when you do your own oil changes, or have your
mechanic or quick-lube store use the Kia filter and not their own.

The letter to the FTC also states, “Note
that CR is specifically recommending that car owners either go back to the
authorized dealer or use a Kia oil filter in direct contravention of the
consumer options codified in MMWA. To arrive at that recommendation, the report
perpetuates Kia’s sleight of hand regarding the manufacturer’s burden of proof.
In Kia’s world, and now CR’s as well, it is the consumer who must prove that an
aftermarket filter didn’t cause engine damage, which is exceptionally handy for
Kia given their failure to establish a technical basis for their proprietary
filter mandate.”

“The main loser of course is the consumer who, as the
CR article states, must now pay more for an oil change. While CR clearly should
have done more to research this issue before publishing the article, the fact
remains that the FTC failed to undertake its responsibilities under the law and
take action to halt Kia’s anticompetitive and anti-consumer actions. The
absence of action by the Commission is now cascading, as evidenced by the CR
posting, into additional misinformation to consumers and subsequently more harm
to Kia owners and to those who service and supply parts for Kia vehicles.”