Generac Hit with Class Action Over Inspection Fee for Allegedly ‘Known’ Generator Corrosion Problem [UPDATE]

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Generac Power Systems faces a proposed class action over the company’s alleged refusal to diagnose a known and potentially dangerous fuel line corrosion issue with its home standby generators at no cost to consumers.

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The 15-page case in Pennsylvania claims Generac instead charges consumers an inspection fee that will not be returned should the company conclude that corrosion has not significantly compromised a generator’s fuel plenum, a pressurized chamber that helps deliver the fuel with which a generator operates. According to the lawsuit, Generac’s corrosion inspection fee constitutes a violation of the Magnuson-Moss Warranty Act, a federal law that governs consumer product warranties and requires companies to provide consumers with clear and detailed information about warranty coverage. 

The suit alleges that the Generac home generators at issue suffer from a known corrosion problem that may increase their risk of catching fire. More specifically, the case states that a generator’s fuel plenum, a component located near the battery compartment that helps deliver fuel into the engine, can become corroded when exposed to moisture. 

Per the complaint, Generac charges an $80 inspection fee to take a look for potential corrosion, which the suit argues disincentivizes consumers from having their generators inspected given they will not be reimbursed unless the fuel plenum is found by the company to be “significantly compromised.” As the case tells it, even consumers whose generators display visible corrosion along the fuel plenum are unsure as to whether they’ll be reimbursed, or if their generator will meet Generac’s threshold for “significantly compromised.” 

As a result of the $80 inspection fee, Generac is able to skirt providing warranty service to affected consumers while at the same time burdening them with “a faulty, fire-prone generator,” the lawsuit alleges. 

The complaint goes on to contend that the five-year, 2,000-hour limits for Generac’s limited warranty are “unconscionable and unenforceable,” as the company “knew or should have known of the conditions in which the Class Generators would generally be installed,” and that they would develop a “defect” that poses a safety risk. 

“In its capacity as a warrantor, Defendant had knowledge of the true quality and character of the generators, so that any efforts to limit its warranties in a manner that would exclude coverage of the affected generators is unconscionable,” the case argues. 

The plaintiff, a New Hope, Pennsylvania resident, claims to have received a letter from Generac in December 2020 that informed him that “[s]ignificant corrosion of the fuel plenum may lead to a potential fuel leak during the generator operation, resulting in the risk of a unit fire.” The letter recommended that the plaintiff pay $80 for an inspection prior to the end of 2021 to detect the presence of corrosion along the fuel line, and indicated that the consumer would only be reimbursed if the fuel plenum was found to be “significantly compromised.” 

The lawsuit looks to cover all persons or entities in the United States who own a Generac home standby generator and received a letter similar to the one received by the plaintiff. 

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