Federal Lemon Law: The Magnuson-Moss Warranty Act

The key rules of the Magnuson-Moss Warranty Act

These are the Magnuson-Moss rules that matter most to a car owner.

Magnuson-Moss Warranty Act
Rule	What it means	Source
Right to sue	A consumer damaged by a breach of a written or implied warranty can sue in state or federal court	15 U.S.C. § 2310(d)(1)
Attorney fees	A court may award costs and attorney fees to a consumer who wins, unless it finds an award inappropriate	§ 2310(d)(2)
Federal court threshold	A federal suit needs at least $50,000 in controversy (and $25 per claim); otherwise you sue in state court	§ 2310(d)(3)
Implied warranties	A seller who gives a written warranty, or sells a service contract within 90 days, cannot disclaim implied warranties	§ 2308
Dispute programs first	Required only if the warranty says so and the program meets FTC Rule 703; decisions within 40 days and not binding on you	§ 2310(a)(3); 16 C.F.R. Part 703

Federal law vs your state lemon law

The federal law and your state lemon law work differently, and many owners rely on both.

Magnuson-Moss compared with a state lemon law
Feature	State lemon law	Magnuson-Moss
Repair test	Set number of repairs or days	None; the warrantor must remedy defects in a reasonable time
Remedy	Repurchase or replacement by formula	Damages; enforcing the warranty
Used cars	Limited	Yes, with a written warranty
Other products	Motor vehicles	Any consumer product with a written warranty

Many owners claim under both. For a new car, start with your state law: find your state lemon law, or get a quick state lemon law check.

Full vs limited warranty: why the label matters

The Magnuson-Moss Act sets federal minimum standards for any warranty labeled “full”. Under 15 U.S.C. § 2304, the warrantor must:

Remedy the product within a reasonable time and without charge.
Not limit how long implied warranties last.
Not exclude or limit consequential damages unless that exclusion is conspicuous on the warranty.
Let the consumer choose a refund or a free replacement if the defect remains after a reasonable number of repair attempts.

That fourth rule is a federal “lemon” provision. Most new-car warranties are labeled “limited”, which is why state lemon laws matter so much for cars. Check the label on your warranty booklet.

How a Magnuson-Moss claim works, step by step

A federal warranty claim follows these steps.

Read the written warranty: who gives it, what it covers and whether it requires a dispute program first.
Give the warrantor repair chances and keep every repair order.
If the warranty requires it, use the dispute program; under Rule 703 it must decide within 40 days and does not bind you.
Sue in state court, or in federal court if at least $50,000 is in controversy.
If you win, ask the court for costs and attorney fees.

Service contracts, online warranties and federal court

Three more federal rules often come up in warranty disputes.

Service contracts are not warranties. The FTC notes that an “extended warranty” sold as a service contract is a separate contract. But a dealer who sells you one within 90 days of the sale cannot disclaim implied warranties on the covered systems (15 U.S.C. § 2308).
Warranties can be posted online. Under the E-Warranty Act of 2015, a warranty on the manufacturer’s website complies if the product, packaging or manual tells you where to find it and offers a non-internet way to get it, and the seller makes it available before purchase.
Federal court needs $50,000. A Magnuson-Moss suit can go to federal court only if the amount in controversy is at least $50,000 across the claims in the suit, and each claim at least $25. Most car cases are filed in state court.

When does the federal lemon law help most?

The federal law is most useful in these situations.

A used car sold with a dealer warranty, a CPO warranty or a service contract bought within 90 days.
A vehicle your state lemon law excludes, such as a motorcycle or a boat.
A defect that appeared after your state’s window but while the warranty still applies.
A claim where attorney fees make it practical to hire a lawyer.

Frequently asked questions

Is there a federal lemon law?

Yes, in effect: the Magnuson-Moss Warranty Act. It lets consumers enforce written and implied warranties and recover attorney fees, but it has no fixed repair test like state lemon laws.

Does the Magnuson-Moss Act cover used cars?

Yes, when the used car comes with a written warranty or the dealer sells a service contract within 90 days, which also keeps implied warranties in place.

Do I have to use the manufacturer’s arbitration before suing under federal law?

Only if the warranty requires it and the program meets the FTC’s Rule 703. Its decisions are not binding on you.

Can I sue under Magnuson-Moss in federal court?

Only if at least $50,000 is in controversy across the claims in the suit. Smaller claims go to state court, where most Magnuson-Moss cases are filed.

Does Magnuson-Moss require a refund for a lemon?

Only under a warranty labeled “full”, which must let you choose a refund or replacement after a reasonable number of failed repairs. Most car warranties are “limited”, so state lemon laws usually provide the refund remedy.

What is the difference between a full and a limited warranty?

A warranty labeled “full” must meet federal minimum standards, including a refund or replacement after a reasonable number of failed repairs. A “limited” warranty does not have to meet those standards, but you can still enforce its terms.

Can a manufacturer void my warranty for using an independent shop?

Generally a warranty cannot be voided just because someone other than the dealer did routine work, according to the FTC. Keep receipts for all maintenance.

Who enforces the Magnuson-Moss Warranty Act?

The FTC writes the warranty rules under the Act, and consumers enforce their own rights by suing a warrantor that fails to honor a written or implied warranty.

Sources

Checked on October 12, 2026. Read how we verify every rule in our editorial policy.