What are the benefits and negative effects of the Magnuson-Moss Act?

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pohnpei397 eNotes educator| Certified Educator

The most important benefits of this act have to do with giving consumers more information about the warranties that come along with the things they are buying.  The act requires the seller to be much more precise about what things are covered by warranties, what are not, and how long they are covered.  

The major negative impact of the act has been in the increase in length and legalism of warranties.  The act has helped to lead to an environment in which everything must be spelled out very precisely.  This can lead to very long warranties that are difficult to understand.  Consumers may buy a product assuming that some aspect of it is under warranty (without reading the warranty because it is too long and hard to read).  They then find out that the warranty is not as comprehensive as they would have thought it would be.

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