Best Buy Fails to Display Product Warranty Terms at Point of Sale, Class Action Claims

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A proposed class action claims Best Buy has violated a federal law by failing to provide certain warranty information about its products prior to the point of sale.

The 15-page lawsuit relays that the federal Magnuson-Moss Warranty Act requires retailers to make the written warranty terms for any product costing more than $15 “readily available for examination” prior to the point of sale, either by displaying the warranty “in close proximity” to the product or placing signs “in prominent locations” throughout the store to inform customers that they may inspect a written warranty on request.

The lawsuit alleges, however, that Best Buy has failed to do so for its products. Instead, the case says, the retailer advertises its own “protection plans” or extended warranties to consumers at the point of sale, with the aim of getting them to buy coverage that may be duplicative of what’s provided through a manufacturer’s warranty.

“If the consumer is not made aware of this warranty, or is prohibited from learning of the warranty’s specific terms until after the point of sale, then he or she is more likely to buy Defendant’s duplicative ‘protection plan,’” the complaint contends.

Although the Magnuson-Moss Warranty Act allows a retailer to display or provide the text of a product warranty via electronic means, “it is not enough” for the seller to simply refer a shopper to the product manufacturer’s website, the complaint contends.

Per the suit, the terms of the warranties for “virtually all” products sold in Best Buy’s retail stores are not available in full to consumers prior to the point of sale, even through electronic means.

The case claims Best Buy has a “self-serving motive” to not comply with the Magnuson-Moss Warranty Act in that the retailer offers its own “Geek Squad” protection plans, which, unbeknownst to buyers, are “largely unnecessary” given they often provide the same or similar coverage as the plans that already come with the product.

The lawsuit looks to represent Illinois residents who purchased one or more products from Best Buy that cost more than $15 and were subject to a written warranty.

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