When you buy a product, you expect it to work as promised, and warranties are there to give you that assurance. But what happens if a company refuses to honor its warranty? If you’ve faced this issue, you may be able to sue to ensure the company upholds its promises. In this blog, we’ll cover what constitutes a warranty, common issues with warranty claims, and how to take action when a company fails to honor its warranty.
What is a Warranty?
A warranty is a guarantee from the seller or manufacturer that the product will perform as expected or that certain repairs or replacements will be covered within a specific period. There are several types of warranties:
- Express Warranty: A written or spoken promise that guarantees a product’s quality or durability. For example, “This phone has a one-year warranty.”
- Implied Warranty: An unwritten guarantee that a product will work as intended, such as a car starting or a dishwasher cleaning dishes.
- Extended Warranty: Often purchased separately, it extends the manufacturer’s warranty period.
Warranties give you legal recourse if a product fails prematurely, but companies don’t always fulfill their obligations, which can leave consumers feeling helpless and frustrated.
Common Reasons for Warranty Disputes
When companies fail to honor warranties, they often claim:
- Misuse or Damage: Arguing that the product issue resulted from consumer misuse or wear and tear not covered by the warranty.
- Out-of-Warranty: Claiming that the warranty period has expired.
- Unauthorized Repairs: Refusing coverage due to prior repairs by unauthorized providers.
- Exclusions in the Warranty Terms: Saying that specific issues (e.g., cosmetic damages or parts replacements) are excluded from coverage.
If you’re facing any of these issues, make sure to review your warranty terms carefully to confirm that the company’s denial is legitimate. In some cases, companies use these reasons to avoid their obligations, even when they’re unjustified.
Steps to Take if a Company Won’t Honor Their Warranty
Here’s what to do if you feel the company’s denial is unfair:
1. Gather Documentation
The first step in building a strong case is gathering all documentation related to your purchase and warranty:
- The original purchase receipt
- The written warranty or extended warranty document
- Any communication with the company regarding the warranty issue
- Photos or evidence showing the product’s defect
These documents will serve as evidence if you decide to pursue legal action.
2. Review the Warranty Terms
Thoroughly review the warranty terms to understand what’s covered and any exclusions. If you find that the product issue is clearly within the warranty’s coverage, this will strengthen your case against the company.
3. Contact the Company’s Customer Service Department
Before escalating, try contacting the company’s customer service team. Politely explain your issue and mention any evidence that supports your claim (such as clear warranty terms and proof of purchase). Be sure to keep a record of these interactions, including emails or written communication, as well as the names of any representatives you speak with.
4. Escalate to Management or a Supervisor
If the initial contact doesn’t resolve the issue, ask to speak with a manager or supervisor. Let them know that you intend to pursue legal action if the warranty is not honored. Companies often take complaints more seriously when escalated to higher levels of management.
5. Send a Demand Letter
If the company still refuses to honor the warranty, consider sending a formal demand letter. A demand letter is a written statement requesting that the company fulfill its warranty obligations or else face legal consequences. In the letter:
- State your problem clearly and provide any supporting evidence.
- Reference the specific warranty terms that the company has failed to uphold.
- Indicate the actions you would like the company to take (e.g., repair, replacement, or refund).
- Include a deadline for response (e.g., 14 days).
Demand letters show the company that you are serious about the issue and prepared to pursue legal action if necessary.
Taking Legal Action Against a Company for Warranty Issues
If your efforts to resolve the issue directly with the company fail, you may need to take further steps, including legal action.
1. File a Complaint with the Better Business Bureau (BBB) or FTC
Filing a complaint with the BBB or the Federal Trade Commission (FTC) may put additional pressure on the company to honor the warranty. While the BBB can’t force the company to act, it can impact their public reputation, and the FTC has the power to investigate and penalize companies engaging in deceptive practices.
2. Consider Small Claims Court
If the amount in dispute is within your state’s small claims court limit (typically ranging from $2,500 to $10,000), you may file a small claims lawsuit. Small claims court is a cost-effective way to pursue legal action without a lawyer, and it’s designed to be accessible for individuals.
To file a case in small claims court, you’ll need:
- All documentation related to the warranty dispute.
- Evidence showing that you attempted to resolve the issue outside of court.
- A completed small claims complaint form, which you can obtain from your local courthouse or online.
3. Hire a Lawyer (for Larger Claims)
If the amount in dispute exceeds the small claims limit, or if the case is complex, you may need to hire an attorney. An attorney experienced in consumer rights or warranty law can help determine whether you have a strong case and represent you in court if necessary.
What to Expect in a Lawsuit Over Warranty Issues
If your case goes to court, you’ll need to prove that:
- The company provided a warranty (express, implied, or extended).
- Your product defect or issue is covered under that warranty.
- The company refused to honor the warranty despite reasonable requests to do so.
If you win your case, the court may award you compensation that could include:
- The cost of the product or any related repairs.
- Reimbursement for other expenses incurred as a result of the warranty failure.
- Additional damages if you experienced significant loss due to the company’s refusal to honor the warranty.
Conclusion
Warranties are there to protect consumers, and you have the right to demand fair treatment when a company doesn’t honor its warranty terms. If you’ve exhausted all other options, taking legal action may be necessary to hold the company accountable.
At Rapid Small Claims, we specialize in helping consumers resolve small claims disputes. If you’re dealing with a company that won’t honor its warranty, file your small claims now with our assistance, and take a stand for your consumer rights.