Wiliam writes in to point out something he noticed in the fine print of Best Buy’s Product Service Plan: it begins as soon as you purchase the item, and doesn’t cover anything covered by the manufacturer’s warranty. If you have a one-year manufacturer’s warranty and a two-year PSP, you effectively get only one year of coverage out of the PSP.
I’m one of those consumers who always seems to end up with defective big ticket items. I’ve had a laptop, HDTV and Xbox360 all die just after a year of the initial purchase. Thanks to Product Service Plans and Extended Warranties I got all three items replaced which saved me close to $2,500.
While prepping to buy an iPod Touch I decided to read through Best Buy’s Product Service Plan again to make sure I understood how it worked. The following two sections caught my attention immediately.
Coverage under this Plan expires one (1), two (2), three (3), four (4) or five (5) years from the original product purchase date as stated on your purchase receipt.
[...]
Manufacturer’s Responsibilities: Parts and services covered during the manufacturer’s warranty period are the responsibility of the manufacturer and not covered under this Plan.In the past I’ve been lucky (lucky?) enough to have the item die just after the manufacturer’s warranty ended. I had assumed that buying a two year service plan from Best Buy would have guaranteed me two more years of service – turns out that’s not true.
When Best Buy sells a 2 Year Product Service Plan it starts immediately and runs concurrently with the existing manufacturers warranty. I would call it double coverage on the product except for that second section.
I spoke to the folks at my local Best Buy (I’m lucky enough to live near a BB where the folks know the system pretty well) and they confirmed it to me – even though they call it a two year service plan they really only cover the second year of service because the manufacturer is responsible for the first year.
Is it me or is this clearly deceptive? When you walk into a Best Buy and purchase a 2 year Product Service Plan (which they regularly call an “Extended Warranty” at checkout) you expect it to kick in after the manufacturer’s warranty … right?
Thanks, William, for the info! But we can’t believe you’d be brave enough to admit on Consumerist that you have repeatedly purchased Product Service Plans from Best Buy. For the love of god, go easy on him, readers.
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Store purchased plans usually cover more than just “manufacture defects” of course there is an overlap. Would you rather the product breaks from normal wear and tear (such as buttons sticking on a nintendo DS) and not be covered by the manufacturer or be covered with a performance plan?
It’s not called an extended warranty, it’s a performance service plan. EVERYONE knows it starts the day you purchase it. In fact, if you look at your receipt for the PSP expiration date, you will see a date 3 or 4 or 5 years from the date of purchase. Further, BB’s PSP cover you *beyond* the manufacturer’s warranty, i.e. for wear and tear, dust, humidity, etc. Most of all, they cover power surges, something the manufacturer does not cover. If you live in a lightning-prone area, this is worth the price alone. I replaced two computers this week for customers whose CPUs were fried in our recent storms.
Some retailers’ service plans start after the manufacturer’s warranty, Home Depot, for example, but during that first year you MUST go through the manufacturer to get service.
I’m soooooo over people ripping into BB for something that is plainly stated in the PSP brochure. How is it deceptive if you don’t read what you sign on for or don’t ask questions? I’ve never had a customer *not* know this fact and I work in appliances!
If you’re still bummed, you have a 30-day return policy on the PSP for a full refund. After that, it’s prorated, so you may lose a few dollars, but can still can a refund for the money you paid. You’re not stuck with the PSP.
I’m sorry if you feel duped, my store’s customers are aware of this fact, and we are quick to tell them the truth should they ask. Shocking, I know.
I used to buy the PSP, until BB refused to honor the one we bought on our digital camera. It started going all wonky one day, turned on, but wouldn’t take pictures.
Took it in, and they sent it off for repair. 3 weeks later I called and they said it would cost $400.00 to repair, even though the camera only cost $350.00. Then they said it wasn’t covered by the manufacturer’s warranty or the PSP, because the repair place said it had water damage and it was our fault.
I was furious, went to pick up the camera, and the guy gave it back to me and it was in a plastic bag. He pulled it out of the bag and the camera just fell apart. Apparently the guys at the repair place forgot to put it back together correctly before sending it back. I’m sorry, but if you can’t put it back together the right way, then I’m more than suspicious about your assessment of what’s wrong with the camera.
After a million other trials and tribulations, we finally got someone at corporate to give us a gift card for the amount of a new camera, after he researched the case and said there was no evidence that we broke the camera.
Now I don’t shop at BB, and I don’t buy the PSP. Instead I try to buy a good product that won’t break within a year.
@cliffordmanning: Nikon offers a five-year warranty in the US on US-market SLR lenses. I’m not sure what Canon’s policy is (or the smaller mfrs like Pentax and Sigma). Credit card extended warranties usually only offer an extra year if the warranty is only a year long. But check your warranty papers and credit card papers.
What? Run out of negative things to say about Best Buy and now you have to pick at something that is not only common knowledge but is also a common practice? Tell me one retail chain that starts their extended warranty after the MFG warranty expires.
Seriously, this mudslinging against Best Buy is seriously getting old. At least wait till something worthwhile shows up.
I feel no need to buy this. Why? The manufacturer’s extended warranty covers everything I need it to. For example, Panasonic’s warranty covers all accidental damage.
@Jinx: some people are SADLY misinformed regarding this issue :S
This is very common… many retailers do this because their warranty covers things the manufacturer won’t even consider (such as humidity, heat, power surges, and, if covered, replacement or accidental damage). What would a consumer say if he purchased a warranty for one of these things and was told that, no, they cannot get the PSU and motherboard of their fried computer fixed because it is under the manufacturer’s warranty, which does not cover power surges, and that they must wait until it expires so the protection plan can kick in.
Whether protection plans are a good purchase or not is its own question, but if you do decide to get one, read the fine print so you know what you are up against and how you can use it when it is needed (and don’t trust what the employee told you). If this comes as news to you, though, label yourself an uninformed consumer.
VISA/Mastercard/AMEX all doubles your warranty to up to an additional year “for free”
I have found that while these extended warranties are expensive they are worth it for certain high ticket items where product deflation is relatively low (which should now be a more pertinent issue given rising production costs and China) and the odds of product failure relatively high. Another benefit is there is no need for record keeping on the consumer’s part. If you buy a warranty from Circuit City for eg., you can move to a different state and call them and they have your covered purchase in their data base. The in-home service is especially good for large items, i have found, and its usage is generally unlimited by the plan. The last point I will make is that of convenience. If you have a problem with a product with a retailer warranty the retailer replaces the product – its that simple. Compare that with trying to find your receipt and packaging the product, etc. and mailing it back to the manufacturer. No contest in terms of both simplicity and immediate gratification. Oh, and another thing, given the fast product replacement cycle and tech upgrades the “comparable model” that replaces yours will be superior to the one you originally purchased.
@rikkus256: Yes, but you have to wait a really long time for them to “approve” the claim. Sometimes >6 months
I just went through this with my boss maybe 2 days ago. He wanted to know why I was demanding he buy the extended warranty / service plan on a printer. The reason I did this was because, at staples canada, if the product is under $200, it is a direct replacement / credit for the item. So all he has to do is walk in there with his receipt, tell them he wants a new one, even a different make / model, and they will give it to him – and no staples has ever given me the least bit of hassle about it (and I REALLY doubt they’d do it to him – he’s a much more… difficult… person when upset than I am). For that, the $10 on a $100 printer is more than worth it.
Sears Master Protection Agreement works just like that. Only they don’t hide that fact from you. The MPA also doesn’t cover cosmetic damage to the item.
But it’s not an extended warranty so there’s no reason to assume it extends the warranty another 2 years.
It’s a 2 year SERVICE plan which in many ways will go beyond the level of coverage offered by the manufacturer’s warranty.
@shadow735: Or buy your iPod from Amazon, who actually offers discounts on iPods.
I check this stie about 2-3 times a week, and I’m always guaranteed to see a post about Best Buy screwing its customers. I can’t wait to watch them go under.
No, it is NOT the same way at Circuit City.I work at a Circuit City and the Extended Service Plans begin at the end of the manufacturer warranty. If you purchase the plans that cover accidental damage, the accidental coverage begins on day one and goes for two years, but the normal parts and labor crap is two years after the manufacturer warranty.
And even though I work there and have to sell them, no, I do not believe in them for anything accept some laptops.
Best Buy causes AIDS.
BEST BUY SUCKETH
DIETBESTBUYTDIE
You don’t need a BB extended warranty! Check with your credit card, they usually extend the manufacturer’s warranty up to a year when it ends as others have posted.
@hi: That’s German for “The Best Buy, the”.
I work for HHGregg and we sell ESP’s or extended service plans underwritten by General Electric. These ESPs are supplemental to the manufacturer’s warranty and include things like protection against power surges if you don’t use a surge protector (mandated my manufacturer warranty in many cases) and they also expedite service. In all honesty, most things you don’t need an ESP for…
Things like projection TV’s, though, the ESP covers bulbs, so you can buy a 5 year plan and get 2 bulbs paid for and have saved a cool $150, same thing with laptop “premier” ESP’s which cover dropping the unit or spilling beer or something on it that is never covered by manufacturer warranty.
One thing to avoid is any additional warranty on Dyson vacuum cleaners, they come with a 5 year EXCHANGE warranty anywhere you buy them. If it screws up, you get a NEW one, good stuff.
This is not deceptive. If you read it, you will know that it covers things the manufacturer won’t cover during the first year. Like dust, heat, humidity, normal wear and tear, and power surge) In addition to the extra coverages, you don’t have to send it anywhere. Best Buy does the shipping for you. I don’t mind the warranties being concurrent because it is so much more convenient. Items under the service plans that came with rechargable batteries include one free replacement of the battery, cleanings on applicable products. Ask yourself how much you would use the item and the average cost of repair. Then make your decision. There’s no wrong decision.
The Sales section of the store chain at which I work sells plans that EXTEND the manufacturer’s warranty, as well as “Day-1″ plans.
That doesn’t help us. The majority of the service plans that are sold begin coverage AFTER the manufacturer’s warranty expires. People will come in and get angry with us because we won’t repair the item and direct them instead to the manufacturer, or offer to ship to the manufacturer for them since they purchased an extended warranty.
A gentleman got upset with me several days ago regarding an early battery failure in his system. When I directed him to the manufacturer, he rolled his eyes and said “So I just wasted $X on the service plan then?” and turned to the person with him and said “See, I told you it was just going to be a waste of money.”
I offered repair services to him, and explained to him that we would have to confirm the problem before getting a new battery under warranty – which would take substantially longer than if he just went home and called up the manufacturer. I was trying to save him *SEVERAL DAYS* on his replacement, and explained that the service plan was never intended to cover “disposable” parts, nor was it meant to cover products under the manufacturer’s warranty, except insofar as we’ll handle the RMA headaches.
As another customer who was with me at the time said, “You just can’t help some people.”
Same with the CompUSA… I bought an HP laptop with extended service plan I stupidity thought I was buying HP total care… My Bad. Then as you all know CompUSA died. I called hp for the laptop fix and they told me that I don’t have a protection plan. Nice! Ok Let’s call dead CompUSA tech support… – After 80 minutes – Ahaaa! the plan was actually not starting from the end of my Laptop’s regular warranty and the guy on the phone didn’t do anything and told me to send the laptop to the third party tech support people to get it fixed.
My Advice? Go and buy warranty plans directly from the manufacturer, extended warranty is a good thing.
There seems to be a bit of muddling and interchanging regarding Best Buy’s product plans. There are two types of plans: Performance Service Plans, and Product Replacement Plans.
Performance Service Plans last X years and begin on the date of purchase (after the mfr. warranty for some products). If the product fails, they will SERVICE the product and get it working again. For some products and plans they will service them in your home, others you need to bring to the store. They also have the No-Lemon policy on these plans. These plans are offered on the higher-ticket items (computers, appliances, TVs, stereos, speakers, etc.)
Product Replacement Plans last X years and begin on the date of purchase. BY THE CONTRACT, if the product fails, you need to call an 800 number and give details of what is wrong. You will be sent a prepaid postage label so that you pack up the product in a box and send it in. They will then send you a voucher for the purchase price plus tax (not including the plan price). The plan is then considered fulfilled and you can buy whatever you want with the voucher. Many BBY employees will tell you that you can simply bring the product back to the store for exchange. Many times the store will honor that, but if they don’t and tell you that you call the number, you don’t have a leg to stand on. I wouldn’t trust the comments from mikep7779 above pertaining to simply using the PRP to get a new iPod every 2-3 years, as 1. He’s an employee, and they’re more lenient with employees, and 2. The product has to be defective in order for it to be eligible for replacement. PRPs are usually sold on lower-ticket items such as video game systems, telephones, keyboards, mice, portable CD players, etc. Most of these products are what Best Buy considers ‘DEVO’, which means they’re able to return the product to the manufacturer and get their money back for them. That’s the reason they will do exchanges in-store, plus it means the PRP was pure profit for them.
What you people don’t understand is that no one is LYING to you. Because you’re idiotic enough to think that Best Buy is EXTENDING your warranty and ADDING 2 or 3 years to it, that’s your own dumb ass fault. The Service Plan is designed to cover what the manufacturer DOESN’T. The manufacturer isn’t going to repair that laptop if you accidentally spill your coffee on it in the morning, or if you drop it off of your desk at work, or if you freakin’ run over it in your car. The manufacturer warranty is going to cover THEIR screw-ups. Faulty workmanship, crappy labor, etc. They’re not going to cover something just going out after time. So, to you reader, you are actually saving yourself a lot of money by getting the plan because if it DOES break in that first year, who’s to say you’re going to get it fixed from the manufacturer. All you have to do is take it to ANY Best Buy, explain what’s going on, and get it repaired FOR FREE, or REPLACED FOR FREE. It’s a win-win situation.
Even my 5 year old sister knows this!!
@blkhrt1: Without getting into an argument over extended warranties in general, I find issue with your last sentence. If you have a Product Replacement Plan, BY THE CONTRACT you have to call, wait for a postage label, mail in your product, and wait for a voucher. Even then you’re tied to buying something from Big Blue. That is NOT simply ‘taking your item back to Best Buy and getting it replaced for free’. Some stores might do an exchange, but if they refuse, you’re bound to what’s in writing.
It’s a fairly common process – as other commenters have pointed out this is usually because, in the words of D&G (one of the companies in the UK which offer them) it “augments the existing manufacturer’s warranty” in addition to the extended time.
Previously I’d seen things described as “1+4″ for example (one year manufacturer and four years extended) but that died off. However, again from a UK perspective, with the various legal requirements about displaying the details of extended warranties I suspect that sort of labelling might return.
With regards to the CompUSA plan issue – that’s another bit of fine print to keep an eye out for – the details of who/how these things are underwritten or equivalent, if at all. Some of the bigger companies here what is in essence have a big pot of money purely for paying claims, which will remain there for that purpose even if the company does collapse.
Do many companies over there do mail-outs when the manufacturer’s warranty expires? If so, and if you aren’t in particular need for the accidental damage etc, you’re probably better off waiting for these as they kick-in as the warranty expires and tend to be cheaper as they reflect the year(s) of protection you haven’t had.
The law firm of Price Waicukauski & Riley, LLC is currently investigating Best Buy’s extended warranty program, and its overlap with the manufacturer’s warranty. We are currently attempting to learn as much as we can about consumer’s experiences regarding these warranties. If you have recently purchased a Best Buy extended warranty plan, please feel free to contact Chris Moeller (cmoeller@price-law.com) or Joe Williams (jwilliams@price-law.com).
http://www.price-law.com
1-800-905-2856
This move was a huge low-blow not only to the consumers but the people who have to sell service plans.
I’ve been with FutureShop for quite sometime now and I have always told my customers that the Service plan starts from day one and you deal directly with us from day one. Every time a customer has come in with issues with a product I sold them, I’ve helped them as efficiently as I could. Sure sometimes the wait for repairs were long and some customers got angry at me, but, overall, most of the customers who’s issues I have resolved have gone away satisfied with the service they got. This was mainly due to the fact that regardless of what the problem was, we dealt with the problem personally, and in my opinion, that what makes future shop stand out. Well this all went to hell last Sunday when I was unpleasantly surprised by on of my coworkers when a customer came in with a defective TV.
I was called down to the customer service area about checking out the defective TV. I went over and inspected everything and concluded that the TV’s power had fried. Since this is covered in our service plan I told CSR rep send it for repairs but, unfortunately, my coworker decided to turn into HAL9000 and kept saying over and over again that I’m not allowed to do that. When I asked why, she said that since the product was covered by the manufacture for 2 years, the customer has to go deal with the manufacture. The customer and I both looked at her and said that was complete bullshit. My coworker got pissy and brought the manager who came over, listened to what I had to say, listened to what the customer said, and decided to let the repairs go through. Both the customer and I were satisfied with decision and my coworker apologized dryly.
Nothing big, just a mistake by CSR I thought but oh how wrong I was, the drama was just unfolding…
After everything was done, I went back to my department where I walked around helping customers. About ten minutes into doing this my manager approaches me and tells me to come into his office… When we got to her office, she told me to sit down and had a very annoyed expression on her face. Without any warning she begins to scold me about how I handled that situation improperly was acting like an arrogant assfuck (her exact words). I tried to defend myself by saying I did everything the way you trained me to do so.
She laughed at this and said how stupid I was then because she had clearly told everyone she trained that the service plan never EVER covers an item while it still has a manufacturers’ warranty. I was completely bamboozled because this was completely illogical.
I told her that what she was saying made absolutely no sense. If the customer got a laptop and purchased the 2 year psp for $200, what you’re telling me is that essentially, for the first year we give the customer the cold shoulder and tell them to deal with the manufacturer?! Fuck! That means they are literally giving us 100 dollars for no freaking reason… This is a complete bullshit idea!! How the hell am I supposed explain this to customers?
“So yea, Mr. WorksMyAssOfForMyDollar I’m going to sell you this 2 year PSP but only pretend like I am covering you for the first year when in reality you would have to go through the same means of repairing your product as you would have if you didn’t get this PSP! Yea it’s a really great idea because now I can steal your money, and not get arrested for it! Great you say? I know!!!”
Of course my manager didn’t like my tone and tried to explain to me that the service plan covers stuff that isn’t covered by the manufacture. But again, this is bullshit…
So in the end I got written up by the manager and scolded by the district manager later that week…
What appalls me the most is that they kept the change quiet, no one but the managers and CSR knew about the change until this mishap occurred. The next day the PSP sales dropped from around 19% to an amazing 3%. Yes we sales folk were pissed. Of course management responded by bringing in the District manager and try and “motivate” us… It worked I guess, because the PSP figures went back to normal afterwards, but I think it was because people were afraid to loose their jobs.
As for me I handed in my 2 weeks notice to the store 3 days after and explained to them how disgusted I was at their pathetic attempt to reduce costs at the sacrifice of customer experience.
Customer experience and honesty were the greatest assets of FutureShop. What management did was ludicrous and will most likely tarnish our stores image even further and thus result in a major loss in sales… What irony, in their stupid attempt to lower costs they fucking destroyed their sales opportunity. The stupidity of this decision, in my opinion, is comparable to that of a marathon runner who decides to cut of their legs so they can became lighter and thus run faster….
Good Bye FutureShop and Good Riddance, I hope to see you again when you’re desperately trying to sell your inventory like CompUSA…
We would like to thank TomHearty for his insightful comment. This is precisely the kind of information that helps us learn more about these type of warranty agreements. If anyone would like to discuss their experiences with Best Buy (or with a simliar “extended” warranty program), please feel free to contact attorneys Chris Moeller (cmoeller@price-law.com) or Joe Williams (jwilliams@price-law.com).
http://www.price-law.com
1-800-905-2856