Class Action Against Newell, Sunbeam Claims Warranty Restriction on Self-Repair Is Unlawful

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A proposed class action claims the makers of Sunbeam, Crockpot, Oster and Mr. Coffee products have unlawfully conditioned the terms of their one-year warranties on the requirement that buyers use only an authorized repair service.

According to the 17-page case, this so-called “tying arrangement” between a warranty’s validity and a consumer’s use of only authorized repair services violates state and federal law. Moreover, although the defendants’ one-year limited warranty is advertised on the outside of product packaging, buyers are not made aware of the authorized repair service restriction until after they’ve made a purchase, the lawsuit claims.

The suit argues that consumers would not have purchased the products, or would have paid less for them, had they been aware of the unlawful warranty restriction.

Defendants Newell Brands Inc. and Sunbeam Products, Inc. distribute electronic home appliances under the brands Sunbeam, Crockpot, Oster and Mr. Coffee, among others, the case explains. The suit alleges that the one-year limited warranty for many of the defendants’ products is conditioned on a buyer’s use of the companies’ authorized services to perform maintenance and repairs. Consumers are warned that making repairs to the product themselves or using a third-party repair service will void the warranty, the complaint relays.

Under the Magnuson-Moss Warranty Act, companies are prohibited from conditioning product warranties on a consumer’s use of a specific article or service identified by brand, trade or corporate name unless it is provided for free under the terms of the warranty. Moreover, the case argues that a repair restriction that causes “substantial injury” (such as monetary harm or health and safety risks) is in certain cases considered an unfair or deceptive practice as prohibited by the Federal Trade Commission Act.

The lawsuit alleges that because much of the technology used in the defendants’ products is “well known and simple,” restricting consumers from repairing the appliances themselves is unjustified.

The plaintiff, a Massachusetts resident who purchased a Mr. Coffee 12-cup coffee maker in May 2021, says she reasonably believed that the appliance’s warranty complied with federal and state law and that she would be able to fix the product herself if it malfunctioned. Upon opening the package, however, the plaintiff discovered the repair restriction, according to the complaint. The plaintiff says she would not have purchased the coffee maker had she known its warranty would be voided by certain repairs.

Per the case, the plaintiff’s coffee maker began to “slightly” malfunction shortly after she purchased it. Though she would like to repair the product herself, the warranty prohibits her from doing so, the complaint says.

The plaintiff seeks to represent anyone who purchased (not for resale) a Sunbeam, Crockpot, Oster or Mr. Coffee product in the U.S. with a warranty provision that prohibits self-repair.

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