Wayfair Warranties Unlawfully Bar Third-Party Repairs, Class Action Claims

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A proposed class action claims online furniture retailer Wayfair, doing business as Lark Manor, has illegally designed its warranties to be void should a consumer use a third-party servicer to repair its products.

The 15-page case states that under the federal Magnuson-Moss Warranty Act’s “Anti-Tying Rule,” it is illegal for a retailer to condition the validity of a warranty on the use of only authorized repair services or parts. Per the suit, Wayfair’s tying arrangement violates consumers’ right to obtain repairs from service providers apart from the original manufacturer without risking the loss of their warranties.

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Filed by a Pennsylvania consumer, the lawsuit claims that the Lark Manor rolling kitchen island the individual purchased earlier this year has a warranty that states it “does not apply to any product which has been improperly assembled, subjected to misuse or abuse or which has been altered or repaired in any way.” The complaint argues that these terms lead consumers to believe that seeking third-party repairs will void the warranty.

According to the suit, Wayfair’s alleged noncompliance with the Anti-Tying Rule is “self-serving” as it stifles the third-party repair industry.

“Many consumers won’t attempt even simple, inexpensive repairs—or use inexpensive third-party repair services—if they believe doing so will void the warranties they purchased with Defendants’ products,” the filing contends.

Further, the “monopolistic grasp” Wayfair maintains on the repair of its products harms consumers in several ways, the case claims.

"First, the stifling of competition drives up the cost of repair and limits a consumer’s ability to have their products fixed in a timely manner,” the suit explains. “Commonly, a warrantor’s authorized service centers will have wait times that are untenable for devices that a consumer regularly relies on.”

The complaint goes on to assert that Wayfair’s anticompetitive warranty-tying practice may cause shortages as supply chains struggle to keep up with increased demand, and it can even force consumers to buy new products through “planned obsolescence.”

The lawsuit looks to represent anyone in Pennsylvania who purchased a product subject to Wayfair’s warranty. 

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