Remedies under the Magnuson-Moss Act Lawyer Manual

Remedies

Private right of action

A consumer has a private right of action and can sue, individually or as representative of a class, for violation of the Act. Possible violations of the Act arise when there is a failure to honor a written warranty, or to honor any implied warranty created by state law, or to comply with any requirement of the Act or regulations. 15 U.S.C. §2301(d). 

Parties who are liable

A consumer has a claim against any supplier, warrantor or service contractor who fails to comply with any obligation under the Act, the regulations, or with any written or implied warranty or service contract. 

Jurisdiction

Most suits under the Act will have to be brought in state court. 15 U.S.C. §2310(d) grants federal court jurisdiction only when the amount in controversy is $50,000 or more for an individual claim. In a class action, there is no federal court jurisdiction unless each claim is at least $25, the total amount in controversy is at least $50,000 and the class has at least 100 named plaintiffs, not just class members. 

Relief

A consumer with a cause of action can sue for "damages and other legal and equitable relief." 15 U.S.C. §2310(d)(1). The word damages are not defined, but presumably, it includes any monetary loss, including consequential and incidental damages, as well as personal or emotional injury. The measure of damages is not specified, but where appropriate, the Uniform Commercial Code will control. Punitive damages are not recoverable in Illinois. There are no statutory damages.

Attorneys fees and costs

A prevailing consumer may be awarded attorneys fees and costs. This provision is critical. It applies to the buyer who prevails on a claim for violation of the M-M disclosure rules or breach of any "written warranty." Most significantly, the buyer who prevails on a UCC implied warranty claim could obtain attorneys fees.

Preconditions To filing suit under the Act

If the suit is for failure to comply with a warranty obligation, and the warranty requires the use of a valid, informal dispute resolution mechanism, the consumer must use that mechanism before suing. The FTC has rules setting forth minimum requirements for any informal dispute settlement procedure which is incorporated into the terms of a written warranty.

The consumer must afford the warrantor a reasonable opportunity to cure.

Violations of Magnuson-Moss may be violations of the Illinois Consumer Fraud Act

Any person who violates any of the requirements or prohibitions of the Magnuson-Moss Act is deemed to have committed an unfair, deceptive practice in violation of the Federal Trade Commission Act, 15 U.S.C. §45(a)(1). Illinois courts must consider FTC Act violations when construing the CFA.