Block Exemption

Block Exemption Explained

The Office Of Fair Trading is responsible for setting out the rules applying to car warranties. At one time the major manufacturers had set servicing restrictions forcing consumers to have their cars serviced by the manufacturer to maintain their warranty.

"Widespread confusion among consumers about the terms attached to their warranties, with most believing they must have their car serviced at a franchised dealer for the warranty to remain valid, when this is not necessarily the case."

After the Office Of Fair Trading review they enforced the Block Exemption rule forcing manufacturers to sell their vehicles without servicing ties in their warranties.

"All major makes of new car in the UK were to be sold without servicing ties as part of their warranties. The remaining manufacturers whose new car warranties included servicing ties lifted their servicing restrictions."

This enabled any private garage to service and maintain vehicles while retaining the customers manufacturers warranty as long as original parts had been used in the repairs and servicing.

Block exemption explained from the Office Of Fair Trading: