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Warranty! Does it warrant peace?

A decision to buy a product could turn into a daunting project which often ends with the seller shoving down a product onto the arms of a not so skeptical but excited consumer.

What can consumers do? It is hard to keep up with the many products that are churned out from the cauldron factories of the world that are forever competing for the attention of a fatigued consumer! Thankfully, business and manufacturers have devised some quality disclosure mechanism to assure their prospective customers that the goods they sell can be trusted to an extent of putting an assurance on the product, which is technically called a warranty.

A warranty placed on a product says to the consumer, ‘you can trust our product, it is reliable’. Some products carry a long warranty as long as five years year and some as short as up to a year. Warranties are either given by product manufacturers and or even given by stores where consumers get these commodities. The warranty is not only a functional assurance but has proven to be a customer attraction; it has taken the burden of intensive product knowledge on a variety of products away from consumers.

Consumers as a consequence gravitate towards product that carry an expressed warranty. Although consumers can access a number of warranties, there are principally two types of warranties, the expressed (formal and written in a document) and the implied warranty. Much as warranties are a growing trading phenomenon, not all businesses offer warranties. Some stores do not give any form of warranty and they even try and void manufacturer’s warranties on products they retail.

The tragedy though is that these do not stop the product starved masses of consumers from coming to buy from these shops. A warranty is a promise, a guarantee that a business gives to its customers. It’s worth could be immeasurable; whenever the product is not functioning as it was supposed to or it is defective within the time period stipulated in the warranty, it gives the consumer the right to seek a remedy.

It says to a customer if this product does not perform what it set out to do, we will fix it or replace so that a consumer is restored. Reassuring, isn’t it? But we all know and we have seen some promises broken. Some warranties are broken and breached.

If the market operated only on the protections offered by the goodwill of business, consumers would be pitiably vulnerable. The reason why consumer remedies were effected was upon the realisation that businesses are not angels who can safeguard their profits and the rights of consumers at the same time. National consumer protection laws, even without warranties provided by industry, have taken it upon themselves to impose these protections.

In Botswana, the Consumer Protection Act which is the primary consumer protection law stipulates at least three remedies that are available to the consumer once a warranty is breached.

The consumer can either have their product repaired, replaced or even be given a refund. Many consumers are clearly unaware of these protections and statutory rights. As a consequence, businesses sometimes violate these consumer rights and further shrink the consumer welfare space. To a consumer in Botswana it should be gratifying to know that whether a warranty has been expressly given or not, for a new product a consumer is given a warranty of six months on new products that are returned in their original state or merchantable state. Steps that a consumer should take upon realising that a product is defective or not performing?

1. The consumer should first contact the store where they bought the item and inform them about their source of dissatisfaction concerning the goods they bought and inform the store how they want to be assisted? Whether they want a repair, replacement or a refund and based on the circumstances the store and customer will come to a workable agreement.

2. In the case of products that have a manufacturer’s warranty, the consumer could directly contact the manufacturer where it is feasible.

3. If these are rebuffed by the store or manufacturer, the consumer should approach the CCA for a resolution. How has the CCA dealt with similar cases The CCA has dealt with a number of cases where stores seem to suggest that the fact that they do not offer warranties on any of their goods exempts them from extending repairs, replacements or refunds on products that were sold as new. Some stores even intimidate consumers with big bold writings that the store does not allow; refunds, repairs or even replacements or exchanges.

The CCA has been engaging these businesses through advocacy. Other cases that the CCA has dealt with that had issues of warranties are used vehicles, particularly grey imports. Garages that sell these used cars give a limited warranty on used cars covering gear-boxes and engines for a period ranging from one month to three months.

Even with this expressed warranty, it appears there are difficulties to honour the assurance made in such instances. The Authority is processing a number of cases in this area which in future would be brought before the Competition and Consumer Tribunal.

Consumer Responsibilities Even as regulators tout and extol the remedies available to consumers whenever there is an over-reach there are some iron clad consumer responsibilities that consumers cannot ignore. For instance when a product malfunctions purely because of non-compliance to the manual, mishandling the product and in the process damaging it or at times bringing their complaint to the CCA or to the business outside the period, for instance reporting after six months or expiry of the warranty period. Consumers lets be aware and be vigilant. You have rights!