What "full warranty" and "limited warranty" actually mean under federal law

A "full" warranty is a written product warranty that meets a short list of federal minimum standards; "limited" just means it falls short of at least one of them — it does not mean the coverage is bad.

The short answer

The rule: a warrantor giving a written warranty on a consumer product must clearly and conspicuously label it a "full (statement of duration) warranty" if it meets the federal minimum standards, and a "limited warranty" if it does not (15 U.S.C. § 2303(a)).¹
The four core standards for "full": free repair within a reasonable time; no limit on how long implied warranties last; no exclusion of consequential damages unless it conspicuously appears on the face of the warranty; and a refund or free replacement after a reasonable number of failed repair attempts (§ 2304(a)). Section 2304(b) adds conditions rules, including that the duties extend to each person who is a consumer of the product, not only the first buyer (§ 2304(b)(4)).²
"Full" is not "covers everything." The FTC's own guide says a full warranty does not cover every type of defect, and the statute lets a warrantor decline the remedy where the damage was caused by the consumer or by unreasonable use.³²
A service contract carries neither label. The FTC says service contracts are not required to be titled "full" or "limited."³

Why it matters

The label is the quickest signal of which federal rules a warranty is working under. It decides, for example, whether the company can shorten how long the law's unwritten "implied" promises last, and whether it can make you jump through extra hoops such as returning a card (see the registration card rule). It is also a place where this site's thesis gets concrete: the "full" and "limited" labels belong to written warranties that come with a product. A home warranty or vehicle service contract sold for an extra charge is a separate product that, per the FTC, is not required to carry them.

Full vs. limited, side by side

Federal minimum standards for a "full" warranty (§ 2304), and what "limited" allows
Question	"Full" warranty must	"Limited" warranty
Repair	Fix a defect, malfunction or failure to conform to the warranty within a reasonable time and without charge²	May fall short of this standard on one or more points
Implied warranties	Not limit how long any implied warranty lasts²	May limit implied warranties to the duration of a written warranty of reasonable duration, if the limit is conscionable and set out in clear, unmistakable, prominent language on the face of the warranty (§ 2308(b))⁴
Consequential damages	Not exclude or limit them unless the exclusion conspicuously appears on the face of the warranty²	May differ
Refund or replacement	Let you choose a refund or a free replacement if the product still has a defect after a reasonable number of repair attempts²	May not offer it
Conditions on you	Impose no duty other than notifying the warrantor, unless it can show the duty is reasonable²	Not bound by this standard
Who is protected	Every person who is a consumer of the product during the warranty, not only the first buyer (§ 2304(b)(4); § 2301(3))²⁵	May be restricted

Because "limited" means only that at least one standard is not met, the FTC says a warranty can be both: its guide gives the example of a two-year full warranty followed by a limited warranty on parts only .³

What a full warranty still doesn't do

It doesn't cover damage you caused. The duty to repair does not apply if the warrantor shows the problem was caused by damage (not resulting from a defect or malfunction) while the product was in your possession, or by unreasonable use, including failing to provide reasonable and necessary maintenance (§ 2304(c)).²
It doesn't cover every defect. The FTC's example of a full warranty in its guide is one that "does not cover every type of defect in the product."³
It doesn't apply to a general satisfaction promise. Statements similar to expressions of general policy about customer satisfaction, with no specific limitations, are outside the labeling requirement (§ 2303(b)).¹

Which products and warranties are covered

The rules apply to a written warranty on a "consumer product" — tangible personal property normally used for personal, family or household purposes, including property meant to be attached to real property (§ 2301(1)).⁵ On price, the FTC's guide describes the titling requirement as applying to written warranties on consumer products costing more than $10, and the statute's own threshold provision, § 2303(d), uses the same $10 figure.³¹ The Commission may also exempt some warranties from the labeling requirement by rule (§ 2303(c)).¹

Where a service contract fits

The FTC's guide says service contracts "are not required to be titled 'full' or 'limited'" and that using warranty disclosures in a service contract could confuse customers about whether the agreement is a warranty or a service contract.³ The FTC's interpretation at 16 C.F.R. § 700.11 draws the line: a written warranty is part of the basis of the bargain, with no consideration beyond the product's price, while an agreement that costs extra or is made after the purchase is a service contract.⁶ A home warranty or vehicle service contract sold for an extra charge, or after the purchase, is a service contract under that interpretation, whatever it is called. See extended warranty vs. manufacturer warranty.

As of 30 September 2026: § 2303(d) reads "$10" in the U.S. Code (2023 edition on govinfo.gov).¹ The current statute is at the Office of the Law Revision Counsel and govinfo; we re-check it when Congress amends §§ 2303–2304 or the FTC changes its guidance.

Practical steps

Look for "full (statement of duration)" or "limited" in the warranty title, before you buy if you can (see reading a warranty before you buy).
On a limited warranty, read the parts the § 2304 standards point to: who pays labor and shipping, whether implied warranties are shortened, and whether refund or replacement is offered.
On a full warranty, expect a free fix within a reasonable time, but check what it says about damage and misuse.
If you are comparing this with a paid plan, read our guide on comparing vehicle service contracts or home warranty contracts.