Warranty Question

GJQ

Hi, I have a TV under a warranty with Costco. Their warranty is ‘repair or replace’; they have said that it is beyond economic repair, and that they can’t offer a replacement as they no longer stock the make and model (I’d have assumed that the product bought no longer being available would be a given over the term of a five year warranty?). They apparently no longer stock Panasonic OLED TVs, and my suggestion of an alternative LG tv (the lowest priced Oled tv of the same size as my own available in the warehouse) was declined because (a) it wasn’t same make and model, and (b) it was more expensive than the price I paid 3.5 years ago. And there in lays the crux of my problem and query; whilst Costco have offered a full refund, to get an equivalent tv now will cost me several hundred £s more and will leave me considerably out of pocket. Costco only make provision for repair or replacement in their warranty terms; with a refund only being offered if the replacement offered is declined by the customer and the refund being the value of the replacement. There’s no referenced provision for a full refund of the price paid (which for example a Richer Sounds do) I guess at the time of writing this clause was felt to protect Costco (an era of declining prices meant that a replacement was usually cheaper), but with inflation this is no longer the case. Is Costco within its rights to offer a full refund only, or could/should it offer a replacement of a comparable tv from an alternative manufacturer? Many thanks.

Bradden

Televeisions have generally improved in quality with the costs being relatively flat so it doesn't make sense that an older spec. of TV would cost more now? What was the model of TV you purchased?

born_again

GJQ said:

Hi, I have a TV under a warranty with Costco. Their warranty is ‘repair or replace’; they have said that it is beyond economic repair, and that they can’t offer a replacement as they no longer stock the make and model (I’d have assumed that the product bought no longer being available would be a given over the term of a five year warranty?). They apparently no longer stock Panasonic OLED TVs, and my suggestion of an alternative LG tv (the lowest priced Oled tv of the same size as my own available in the warehouse) was declined because (a) it wasn’t same make and model, and (b) it was more expensive than the price I paid 3.5 years ago. And there in lays the crux of my problem and query; whilst Costco have offered a full refund, to get an equivalent tv now will cost me several hundred £s more and will leave me considerably out of pocket. Costco only make provision for repair or replacement in their warranty terms; with a refund only being offered if the replacement offered is declined by the customer and the refund being the value of the replacement. There’s no referenced provision for a full refund of the price paid (which for example a Richer Sounds do) I guess at the time of writing this clause was felt to protect Costco (an era of declining prices meant that a replacement was usually cheaper), but with inflation this is no longer the case. Is Costco within its rights to offer a full refund only, or could/should it offer a replacement of a comparable tv from an alternative manufacturer? Many thanks.

Take the full refund. It is more than they have to offer, they could take 3.5 years use into account & reduce the refund.

Just because the TV you picked, was the same size, does not make it the same spec.

Manxman_in_exile

I agree with @Bradden - doesn't sound quite right as you'd expect a TV of similar spec to one 3 years ago to be cheaper today(?).

If you are going to rely on the warranty then you are bound by the written terms of the warranty.  Depending on the precise wording of the warranty you may or may not be entitled to a partial refund.  If the wording doesn't mention one, you aren't entitled to one.

In which case you will have to fall back on your consumer rights under the legislation.  You'd have to demonstrate* the TVdid not conform to contrcat when you bought it (not of satisfactory quality or durability perhaps?) but after 3.5 years of use Costco could reduce your refund to account for that use

*Not at all easy to do after 3.5 years but not necessarily impossible

GJQ

Bradden said:

Televeisions have generally improved in quality with the costs being relatively flat so it doesn't make sense that an older spec. of TV would cost more now? What was the model of TV you purchased?

It was a flagship Panasonic tv, that is no longer available. Costco have made an issue of the fact that I bought it as ex display (and hence getting it at a significant discount), where I contest that the price paid is irrelevant as I was assured at the time of purchase it would have no bearing on the warranty. The LG set is a mid range tv, which with advances in tech mean that it is of a broadly comparable spec, a few additions and a few omissions. I only suggested it in an attempt to be reasonable as it was the lowest priced oled of the same size!

GJQ

born_again said:

GJQ said:

Hi, I have a TV under a warranty with Costco. Their warranty is ‘repair or replace’; they have said that it is beyond economic repair, and that they can’t offer a replacement as they no longer stock the make and model (I’d have assumed that the product bought no longer being available would be a given over the term of a five year warranty?). They apparently no longer stock Panasonic OLED TVs, and my suggestion of an alternative LG tv (the lowest priced Oled tv of the same size as my own available in the warehouse) was declined because (a) it wasn’t same make and model, and (b) it was more expensive than the price I paid 3.5 years ago. And there in lays the crux of my problem and query; whilst Costco have offered a full refund, to get an equivalent tv now will cost me several hundred £s more and will leave me considerably out of pocket. Costco only make provision for repair or replacement in their warranty terms; with a refund only being offered if the replacement offered is declined by the customer and the refund being the value of the replacement. There’s no referenced provision for a full refund of the price paid (which for example a Richer Sounds do) I guess at the time of writing this clause was felt to protect Costco (an era of declining prices meant that a replacement was usually cheaper), but with inflation this is no longer the case. Is Costco within its rights to offer a full refund only, or could/should it offer a replacement of a comparable tv from an alternative manufacturer? Many thanks.

Take the full refund. It is more than they have to offer, they could take 3.5 years use into account & reduce the refund.

Just because the TV you picked, was the same size, does not make it the same spec.

Thanks, I wasn’t aware that they could do this - the warranty only sets out for repair and replacement and makes no provision for a reduction in value for use and or wear and tear. Is this an established legal position in relation to warranties?

DullGreyGuy

Ultimately would need to read the full terms of the warranty but if its unrepairable and there is no suitable replacement available then the contract is potentially frustrated and so a full refund is more than reasonable outcome. 

Under your statutory rights they could deduct the 3.5 years use you've had out the TV and whilst the law doesnt say how this should be calculated in practice it'd mean less than a 50% refund based on the methodologies most retailers use.


I am very surprised that you say the TV has gone up in price however I am guessing you arent factoring in the market cycle and the fact the 2023 models were launched in Mar-Apr and so we are at the peak of the prices. In 6 months time most TVs will be at least 30% discounted in preparation for the 2024 models being announced at CES in early January. 

For LG at RicherSounds and 55"

2023 C3 = £1,899 now £1,899 at launch
2022 C2 = £1,169 now £1,899 at launch
2021 C1 = £799   now £1,699 at launch
2020 CX = unavailable £1,799 at launch

Manxman_in_exile

born_again said:

GJQ said:

Hi, I have a TV under a warranty with Costco. Their warranty is ‘repair or replace’; they have said that it is beyond economic repair, and that they can’t offer a replacement as they no longer stock the make and model (I’d have assumed that the product bought no longer being available would be a given over the term of a five year warranty?). They apparently no longer stock Panasonic OLED TVs, and my suggestion of an alternative LG tv (the lowest priced Oled tv of the same size as my own available in the warehouse) was declined because (a) it wasn’t same make and model, and (b) it was more expensive than the price I paid 3.5 years ago. And there in lays the crux of my problem and query; whilst Costco have offered a full refund, to get an equivalent tv now will cost me several hundred £s more and will leave me considerably out of pocket. Costco only make provision for repair or replacement in their warranty terms; with a refund only being offered if the replacement offered is declined by the customer and the refund being the value of the replacement. There’s no referenced provision for a full refund of the price paid (which for example a Richer Sounds do) I guess at the time of writing this clause was felt to protect Costco (an era of declining prices meant that a replacement was usually cheaper), but with inflation this is no longer the case. Is Costco within its rights to offer a full refund only, or could/should it offer a replacement of a comparable tv from an alternative manufacturer? Many thanks.

Take the full refund. It is more than they have to offer, they could take 3.5 years use into account & reduce the refund.

Just because the TV you picked, was the same size, does not make it the same spec.

I missed that they'd offered a full refund(!)

@GJQ -  bite their hand off to take the full refund!

GJQ said:

born_again said:

GJQ said:

Hi, I have a TV under a warranty with Costco. Their warranty is ‘repair or replace’; they have said that it is beyond economic repair, and that they can’t offer a replacement as they no longer stock the make and model (I’d have assumed that the product bought no longer being available would be a given over the term of a five year warranty?). They apparently no longer stock Panasonic OLED TVs, and my suggestion of an alternative LG tv (the lowest priced Oled tv of the same size as my own available in the warehouse) was declined because (a) it wasn’t same make and model, and (b) it was more expensive than the price I paid 3.5 years ago. And there in lays the crux of my problem and query; whilst Costco have offered a full refund, to get an equivalent tv now will cost me several hundred £s more and will leave me considerably out of pocket. Costco only make provision for repair or replacement in their warranty terms; with a refund only being offered if the replacement offered is declined by the customer and the refund being the value of the replacement. There’s no referenced provision for a full refund of the price paid (which for example a Richer Sounds do) I guess at the time of writing this clause was felt to protect Costco (an era of declining prices meant that a replacement was usually cheaper), but with inflation this is no longer the case. Is Costco within its rights to offer a full refund only, or could/should it offer a replacement of a comparable tv from an alternative manufacturer? Many thanks.

Take the full refund. It is more than they have to offer, they could take 3.5 years use into account & reduce the refund.

Just because the TV you picked, was the same size, does not make it the same spec.

Thanks, I wasn’t aware that they could do this - the warranty only sets out for repair and replacement and makes no provision for a reduction in value for use and or wear and tear. Is this an established legal position in relation to warranties?

The reduction for use is nothing to do with a warranty.  It's to do with your statutory legal rights.

A full refund under their warranty is a much better deal than you can get under the law.  (That's what @born_again is explaining)

I'd accept it before it "disappeared"...

tightauldgit

I would take the full refund too. 

You can press on the warranty but if they won't budge and it went to court then I think a court is going to look at it and say if it's not repairable and it can't be replaced then what's the loss to you? Well it's the value of a second hand TV that you have lost so potentially far less than you are being offered as a full refund. 

You've have 3.5 years use of a telly and are getting your money back. If you have to put a few quid towards a new one that's probably still a good deal and if not I'm sure you could pick up a 3.5 year old TV of a similar spec for less than you are receiving. 

GJQ

Thanks everyone, great advice and quick too!
I’ll accept the refund and move on. 

I have to say they were great on getting the tv assessed for repair and then offering a refund quickly and without question, so perhaps I was being tough on them! 

Peter999_2

Glad you're doing that GJQ - it really is a great deal to get a full refund after 3.5 years.     I think you're right and they have actually been really good about it - imagine if it was Currys.