Nintendo's hardware warranty states, "this warranty shall not apply if this product is used with products not sold or licensed by Nintendo." Nintendo has been using this warranty statement for a long time now, but it seems they're going to have to change things up. The FTC has now put out a statement saying that policies like this are illegal. The FTC states that, "unless warrantors provide the parts or services for free or receive a waiver from the FTC, such statements generally are prohibited by the Magnuson-Moss Warranty Act, a law that governs consumer product warranties." The FTC has since sent Nintendo a letter warning them of the illegal activity, which forces Nintendo to change their wording, or operate in a different fashion.