(also called the Federal Trade Commission Improvement Act) legislation enacted in 1975 for the protection of consumers that requires full warranties on products to meet very specific minimum standards. These standards include free repair of the product within a reasonable time period and a full refund or replacement if the product does not work after a reasonable attempt at repair has been made. If product manufacturers are unwilling to offer such a warranty, according to the act, they must be clear that they are only offering a limited warranty. This legislation has led some manufacturers to stop using warranties on their products as marketing tools.

Dictionary of Marketing Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.