The Short End of the Warranty

My wife and I recently ran into a common problem faced by many homeowners. When we went to turn on the hot water the other morning, to our dismay, the hot water tank had failed sometime during the night. Thankfully, there was no water damage, but the tank needed to be replaced.  

When we checked the original invoice, we saw that the warranty had expired just two weeks prior to the failure. I’m not sure if that’s coincidence or if we were victims of planned obsolescence, but the truth is we did notice the tank was having some issues a few months prior to the failure (while still under warranty) but regrettably we took no action at the time and incurred a $2,800 unplanned expenditure as a result.

What is a warranty under Canadian consumer law?

A manufacturer's warranty is a written guarantee to the buyer of a product. Its terms assure the replacement or repair of the product, if necessary, within a specified period after the purchase. The warranty sets forth the terms and conditions to which the warranty applies, as well as any exclusions.

If you are in the process of making a major purchase such as a new car or perhaps a new air conditioning unit or other home appliance, here are a few tips to consider when it comes to warranties.

Warranty Tips

• Read the warranty before you buy.
• Keep a copy of the warranty and original receipt to refer to if an issue arises.
• Only purchase from companies known for adhering to their warranties and their customer service.
• Use items for intended purposes in accordance with the instructions.
• If there is a maintenance schedule, ensure you conduct and document any periodic maintenance.
• Consider making the purchase on a major credit card that offers additional warranties on credit purchases.
• Consider purchasing additional coverage from the seller if it is offered. Like most insurance policies, an extended warranty is something you pay for in the hope that you'll never need to use it. For many owners, it's worth paying the price for peace of mind; even if the product is built by a brand renowned for its reliability.
• Be cautious of unsolicited warranty offerings by phone for example as they may be a scam.

Resolving Warranty Disputes

• Read the warranty and instructions. If you've damaged an item using it for something it wasn't designed for, most warranties won't cover the damage. Additionally, some warranties may not cover certain issues.
• Contact the seller, then the manufacturer. Sometimes, a seller will provide an additional warranty. Be polite, honest and stay calm. Don’t exaggerating your claim or resort to anger and threats. 
• Put in writing.  Clearly, concisely, and factually explain the problem. Emphasize your desire to solve the problem and have a positive relationship with the business and be ready to propose a solution that will resolve your complaint.
• In Canada, most consumer complaints are regulated by the provinces and territories and not the federal government. If your complaint is not satisfactory resolved, you may want to contact your provincial consumer affairs office for help with your complaint.
• Lastly, file a lawsuit. If all else fails, legal action may be able to resolve your complaint. You can always file a lawsuit against the manufacturer, seeking reimbursement for damages. Depending on the item, this option often costs more than replacing the article, and there is no guarantee that you'll win the lawsuit. If you believe this is your only option, contact an attorney to seek legal advice.

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