- The act aimed to provide consumers with detailed information about warranties for different products. Warranty information allows consumers to understand exactly what happens when something goes wrong with their purchase and what can be done about it, thus helping consumers to make informed decisions about which product to buy. The act also aimed to encourage competition among companies with regard to warranty information, thus leading to improved satisfaction for consumers.
- When the act was passed, the Federal Trade Commission adopted three rules for companies to follow: the Disclosure Rule, the Pre-sale Availability Rule and the Dispute Resolution Rule. These rules state that the warrantor must clearly disclose all terms of the warranty in one easy to read document; the warrantor must title the warranty as "full" or "limited"; and the warrantor must make warranties available for consumers to read before buying in the same place where the goods are sold.
- The act applies to written warranties only and not to oral warranties. The act does not apply to warranties on services, only goods intended for personal, household or family use. It also does not apply to commercial goods.