OT: Costco and warranty

[JoeJoe]

I bought an item from them just under a year ago that came with a 1 year qarranty.

Unfortunately it failed a few days ago, luckily just before the warranty expired.

For those unfamiliar with them, they are a member's club-type shop - you need to hold a member's card that is renewed annually to be able to shop there - £35/year. My card expired a few months ago, and I only tend to renew the next time I shop there.

I took the faulty item back today for a refund (they no longer stock them).

I was informed by the CS desk and the shop manager that they were unable to refund me because I am no longer a member and that I would need to renew my membership with them before they could do that. They also mentioned that this was mentioned in their membership's T&C?s. I refused on a matter of principal, and also because I did not wish to renew my membership now.

Am I mistaken in thinking that they were/are in breach of the Consumer Rights Act 2015? Who cares what their T&C's state when the law of the land states otherwise?

Any thought as to what to do next? Was thinking about a call to their head office and hope that they would see sense.

[Mike Humphrey]

No, they're not in breach of the law. A warranty can have any conditions they like (well apart from illegal discrimination etc) - but the key is that it's in addition to your legal rights. You can claim under either the warranty, if you meet the Ts&Cs, or under the law if you meet the conditions in the law. If both would allow you to claim, you can choose either option.

If the warranty is no use, then you've still got the Consumer Rights Act. Was the item faulty at the time it was sold? It's been more than 6 months, so it's on you to prove that's the case - though "it broke with less than a year's normal use" is a good case for it being faulty if it's something you'd expect to last much longer. If so, you're entitled to either a refund, replacement or repair. Don't mention the warranty, it's irrelevant in this case.

Mike

[Robin]

There are 2 different things:

a. your rights under consumer protection law; and b. your rights under a warranty the seller offered in addition to (a).

If you were asking for a refund under (b) - their warranty - then their T&Cs are most certainly relevant. And you need to look at them to see if they are right about membership.

As regards (a), the Consumer Rights Act gives you a right to claim against the trader. But given it's 6 months or more since you bought it your right is limited to repair or replacement or a (partial) refund; and the burden of proof is on you to show it was faulty. Most retailers don't insist on the latter but I've no idea what Costco do.

[charles]

If they are a members' club and not a shop, they probably avoid the requiremenst of any selling regulations. Getting items from them is simply "redistributing club assets".

[Chris Green]

The question is though whether he is a 'consumer' as Costco is possibly a 'business to business' seller in which case the rules are different (and less in favour of the buyer).

[Chris Green]

... and (as I said) I'm not sure that Costco *is* a 'retailer'.

[Robin]

A fair point as regards the OP's particular sale which can only be resolved by the OP providing a good deal more information about himself and his purchase. I answered in terms of B2C as the OP presented that way.

But on the general point I don't see much doubt that Costco has both B2B and B2C sales with the latter within the scope of the 2015 Act.

First, Costco is not a "club" in any relevant sense. The parent company is a listed corporation operating for profit.

Second, the 2015 Act doesn't actually concern itself with what is and isn't a retailer. It works in terms of traders and consumers. It defines those in wide terms[1]. And also puts the onus on the seller to prove a buyer was not a consumer. So I don't see much scope for Costco to argue that it is a B2B sale just because it was in a warehouse piled with goods - the more so when they happily advertise membership for retired individuals.

[1] ?Consumer? means an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession.

[Fredxx]

Not if any member of the public can buy a card.

[Bob Eager]

While the criteria are pretty wide (I think I qualify on three unrelated counts) not everyone can get a card.

[Fredxx]

Ok, Individual Membership is open to private individuals who either work for the right company, or an approved profession, or retired from one of these. I can't see how this could be regarded as a business to business sale.

[JoeJoe]

Thanks all for you input - I most certainly learnt a thing or two.

As to my case: I have just been on an online chat with the manufacturer. They asked me to reply with a photo showing the fault, and a minute later was promised that a brand new replacement would be in the post on Monday morning.

[Brian Gaff (Sofa]

Well its a bit of a grey area. I would have thought with a mind toward reputation they would at least offer something suitable as a replacement even if you had to pay the difference the membership angle sounds like a convenient excuse to me since the original transaction was when you were a member, its probably something thought up on the spur of the moment to save paper work!

Brian