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Costco Online - Refusing To Replace Faulty Item Inside Warranty
Townsmcp
Posts: 5 Forumite
Hi
Im looking for advice. I bought a Panasonic landline phone with 3 handsets in May 2016 from Costco's online website for around £55 (it was advertised on an email from them which is why I went with the phone set).
On the 17th December one of the handsets developed a fault - when its powered on and in the charging cradle the phone constantly reboots every 4 seconds - when not in the charge cradle the phone keeps showing just a white screen and doesnt work. I tried all the usual troubleshooting steps to find out if the batteries, handset or charger was at fault and it is the handset. On the Sunday (18th December) I called Costco to arrange for repair/replacement and was put through to Americans (seems to be ALL the Costco after sales is handled by the US). They told me that as it has been longer than 2 months since purchase they would contact Panasonic on my behalf to arrange for me to take the handset in for repair and to deal direct with Panasonic. I told them I dont think this should be what happens but I just wanted the phone fixed so agreed to it being as Panasonic should be in contact with me within 2 days. No contact from Panasonic.
Over the Christmas period I contacted Costco a few times and each time was told they had contacted Panasonic but will chase them again.
In the end I had enough waiting for Panasonic to get in contact with me so went via their support site last Monday (2nd Jan) with the case number asking for an update. Within 2 days Panasonic came back to me stating that Costco had advised me incorrectly about going direct to the manufacturer as the item is less than a year old and that Costco should be dealing with the problem but they cant replace the handset as its a model they dont sell anymore and dont have in stock (if they did sell it they were happy to replace the handset for me).
I went back to Costco with the message from Panasonic and pretty much the first thing Costco said was "We still sell the same phone (same model) set but the price has gone up to £95". They said the only thing they can do, as its after 2 months from the point of sale, is refund the money I paid and then I can purchase the same set again at the higher price. They said to refund me they would need the phone set back first. I explained this isnt acceptable as it would leave me without any home phones for a a few weeks while they sort out refunds etc and I just want what I paid for - all handsets working. The CS person said they would make the point to their dispatch team and i will be contacted soon.
A couple of days ago I got an email from the dispatch team at Costco with a returns shipping label and a message from them saying to basically buy a new phone set at the higher price (£95) and they will refund me the original amount I paid (£55) but they are refusing to send me a replacement even though they still have the same model in stock.
Can Costco legally do this? Are they not held accountable for selling a product that has become faulty and now they charge more money for the exact same thing expecting customers to just buy the inflated price even when the product is inside the warranty period? If they cant do this, can someone advice me what laws they are breaking so I can reply back to them? I know straight off they went against consumer law saying it was my problem to resolve the faulty phones direct with the manufacturer because it was outside of their 2 month purchase date.
Thanks
James
Im looking for advice. I bought a Panasonic landline phone with 3 handsets in May 2016 from Costco's online website for around £55 (it was advertised on an email from them which is why I went with the phone set).
On the 17th December one of the handsets developed a fault - when its powered on and in the charging cradle the phone constantly reboots every 4 seconds - when not in the charge cradle the phone keeps showing just a white screen and doesnt work. I tried all the usual troubleshooting steps to find out if the batteries, handset or charger was at fault and it is the handset. On the Sunday (18th December) I called Costco to arrange for repair/replacement and was put through to Americans (seems to be ALL the Costco after sales is handled by the US). They told me that as it has been longer than 2 months since purchase they would contact Panasonic on my behalf to arrange for me to take the handset in for repair and to deal direct with Panasonic. I told them I dont think this should be what happens but I just wanted the phone fixed so agreed to it being as Panasonic should be in contact with me within 2 days. No contact from Panasonic.
Over the Christmas period I contacted Costco a few times and each time was told they had contacted Panasonic but will chase them again.
In the end I had enough waiting for Panasonic to get in contact with me so went via their support site last Monday (2nd Jan) with the case number asking for an update. Within 2 days Panasonic came back to me stating that Costco had advised me incorrectly about going direct to the manufacturer as the item is less than a year old and that Costco should be dealing with the problem but they cant replace the handset as its a model they dont sell anymore and dont have in stock (if they did sell it they were happy to replace the handset for me).
I went back to Costco with the message from Panasonic and pretty much the first thing Costco said was "We still sell the same phone (same model) set but the price has gone up to £95". They said the only thing they can do, as its after 2 months from the point of sale, is refund the money I paid and then I can purchase the same set again at the higher price. They said to refund me they would need the phone set back first. I explained this isnt acceptable as it would leave me without any home phones for a a few weeks while they sort out refunds etc and I just want what I paid for - all handsets working. The CS person said they would make the point to their dispatch team and i will be contacted soon.
A couple of days ago I got an email from the dispatch team at Costco with a returns shipping label and a message from them saying to basically buy a new phone set at the higher price (£95) and they will refund me the original amount I paid (£55) but they are refusing to send me a replacement even though they still have the same model in stock.
Can Costco legally do this? Are they not held accountable for selling a product that has become faulty and now they charge more money for the exact same thing expecting customers to just buy the inflated price even when the product is inside the warranty period? If they cant do this, can someone advice me what laws they are breaking so I can reply back to them? I know straight off they went against consumer law saying it was my problem to resolve the faulty phones direct with the manufacturer because it was outside of their 2 month purchase date.
Thanks
James
0
Comments
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Yes Costco can legally do this. Within the first 6 months costco have to either replace, refund or repair the product unless they can prove that it's not a manufacturing defect. However they can choose what they do.
In the first instance they should have dealt with it themselves, but ultimately they opted for a replacement / repair via the manufacturer. When this didn't happen they enacted the only option left, refund.
The idea here is to put you back in the position you were before you bought the phone, so in this case £55.
The fact the price has gone up now is irrelevant as you are relating to this specific contract only. Also, if the price went down - presumably you'd want a full refund and you'd go buy it at a lower price no?0 -
See the comments on a very similar situation in this thread : Returned Goods on a Sale - Unfair Refund? https://forums.moneysavingexpert.com/discussion/55819740
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Others have pointed out your rights, but i would like to add that the discription of the fault you provide is exactly the description of a portable phone whos battery can no longer hold charge so are you sure its a faulty handset and not batterty?
How have you tested if you simply swapped the battery from a working handset into the none working one that might not give you a clear answer, as its possiable (in fact likley) that is 1 battery is end of life the others are proberlly close too and if the handset that is "faulty" is opperating at slightly higher output a working (but near eol) battery could lead to the same issue.
What type of battery dose the phone take most (though not all) portable phones use regular rechargable AA/AAA batterys if this one dose grab a couple of good quality NEW batterys and try.0 -
They are perfectly within their rights to do what they have done.0
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I shop at Costco regularly.
To the orignal OP. I hope you get it sorted out.
In the last 6 months I have had to return a couple of faulty things. I have noticed a change in their returns procedures. A bit more resistance in stores (considering they meant to guarantee satisfaction on everything you purchase). IE going through all your records then deciding to refund etc? It never used to be like that. It was more non quibble.
This might be a policy which varies store to store. I gather store managers have a lot of authority when it comes to store policys.
I purchased something online at Christmas via Costco. It developed a fault already. I have to phone the helpline Monday to discuss return & refund. I am already sensing this is going to be an ordeal. The Costco online is very different from instore. If I get any gyp about returning I won't be using Costco online ever again!0 -
I shop at Costco regularly.
To the orignal OP. I hope you get it sorted out.
In the last 6 months I have had to return a couple of faulty things. I have noticed a change in their returns procedures. A bit more resistance in stores (considering they meant to guarantee satisfaction on everything you purchase). IE going through all your records then deciding to refund etc? It never used to be like that. It was more non quibble.
This might be a policy which varies store to store. I gather store managers have a lot of authority when it comes to store policys.
I purchased something online at Christmas via Costco. It developed a fault already. I have to phone the helpline Monday to discuss return & refund. I am already sensing this is going to be an ordeal. The Costco online is very different from instore. If I get any gyp about returning I won't be using Costco online ever again!
That is worrying to hear.
They have always been brilliant in store with returns.0 -
I shop at Costco regularly.
To the orignal OP. I hope you get it sorted out.
In the last 6 months I have had to return a couple of faulty things. I have noticed a change in their returns procedures. A bit more resistance in stores (considering they meant to guarantee satisfaction on everything you purchase). IE going through all your records then deciding to refund etc? It never used to be like that. It was more non quibble.
This might be a policy which varies store to store. I gather store managers have a lot of authority when it comes to store policys.
I purchased something online at Christmas via Costco. It developed a fault already. I have to phone the helpline Monday to discuss return & refund. I am already sensing this is going to be an ordeal. The Costco online is very different from instore. If I get any gyp about returning I won't be using Costco online ever again!
If you "have had to return a couple of faulty things in the last 6 months" then I would fully expect a bit of hassle... In fact, you'd be running the risk of an account closure if they were all online purchases! With in-store purchases you just have to hope that you aren't known to them
At the end of the day but the more you return, the more unprofitable you are to Costco. They don't *have to* sell items to you, and sometimes it is much more profitable to ban customers with a high returns % than it is to keep accepting their business.
So you should be more focused on keeping your head down a bit if you continue to buy from Costco despite them selling a high number of faulty items...0 -
If you "have had to return a couple of faulty things in the last 6 months" then I would fully expect a bit of hassle... In fact, you'd be running the risk of an account closure if they were all online purchases! With in-store purchases you just have to hope that you aren't known to them
At the end of the day but the more you return, the more unprofitable you are to Costco. They don't *have to* sell items to you, and sometimes it is much more profitable to ban customers with a high returns % than it is to keep accepting their business.
So you should be more focused on keeping your head down a bit if you continue to buy from Costco despite them selling a high number of faulty items...
To be honest I am not sure if you are a costco member not? You are missing the point. This isn't high street retailer. I pay a membership fee to Costco. It's a cash and carry.
Costco have a big sign up. They guarentee my satisfaction on everything I buy.
Simples as that!
If I purchase it and I am not satisfied I have a right to return. If Costco don't like that then change the policy. However they know if they do people won't be attracted to their prices!
A lot of people especially trade return a heck a of lot more then 2 items.
A couple of items is a drop in the ocean.
After Diwali this year the queue was out of the door at one Costco I visited with people taking back all chairs, party equipment & 1 person returning a trolley full of unused food!
So it's probably store to store policy!0 -
To be honest I am not sure if you are a costco member not? You are missing the point. This isn't high street retailer. I pay a membership fee to Costco. It's a cash and carry.
Costco have a big sign up. They guarentee my satisfaction on everything I buy.
Simples as that!
If I purchase it and I am not satisfied I have a right to return. If Costco don't like that then change the policy. However they know if they do people won't be attracted to their prices!
A lot of people especially trade return a heck a of lot more then 2 items.
A couple of items is a drop in the ocean.
I didn't know that Costco were still charging for a membership! Learn something new everyday!
That aside, they presumably have lower profit margins than high street retailers on their items due to the lower prices? I suppose the membership fees would compensate for that somewhat.
Still, depending on your returns % you may very well be an unprofitable customer for them and run the risk of them refusing your business in the future. Talking about other people in a hypothetical situation is a bit academic..0 -
I didn't know that Costco were still charging for a membership! Learn something new everyday!
That aside, they presumably have lower profit margins than high street retailers on their items due to the lower prices? I suppose the membership fees would compensate for that somewhat.
Still, depending on your returns % you may very well be an unprofitable customer for them and run the risk of them refusing your business in the future. Talking about other people in a hypothetical situation is a bit academic..
Yes, anything from £28 to £62 + vat p.a.
And they are not always cheaper.0
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