Class Action Lawsuit Claims Macy’s WorryNoMore Warranty Is a ‘Sham’

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A proposed class action lawsuit alleges that Macy’s and the administrator of its furniture protection plan have misled consumers about the terms of the warranty service and wrongfully denied valid claims filed by customers.

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The 24-page lawsuit alleges that Tarmo, the administrator of the retailer’s WorryNoMore Warranty, has systematically and intentionally denied valid warranty claims. Meanwhile, Macy’s has continued to promote and profit from the plan despite knowing the warranty is a “sham,” the complaint asserts.

Per the filing, the warranty’s marketing materials promise those who purchase the furniture protection plan five years of coverage for structural and mechanical defects, as well as twenty common issues, including rips, burns, punctures, accidental pet stains, chipping  and more.

However, the lawsuit alleges that Tarmo has unfairly exploited vague, fine-print exceptions to the policy terms and designed its service portal to mislead and funnel consumers filing a claim into receiving an automated denial. This flies in the face of the warranty’s representations as the “most extensive coverage in the industry,” the complaint contends.

For example, the suit says that while the plan’s customer brochure promises to cover “seams and stitching that come loose” and “all accidental stains,” the fine-print terms exclude “wear and tear” and “cosmetic damage” from coverage. The filing alleges that Tarmo has used these and other ill-defined terms to wrongfully deny consumers’ claims.

According to the suit, Tarmo has intentionally interpreted the terms “in a slippery and overbroad manner, effectively using such exclusions as a basis to deny valid claims.”

Additionally, the lawsuit asserts that the process of filing a claim on Tarmo’s web portal is intentionally misleading and designed to trick customers into misdescribing the damage to their furniture as something the company’s automated systems can easily deny.

Per the suit, the website presents consumers with a series of drop-down menus that list almost entirely different and much more limited options than are offered in the WorryNoMore Warranty marketing. The filing alleges that the listed options often do not accurately describe or fully encompass the issues the warranty claims to cover.

Furthermore, the lawsuit claims that some of the drop-down menus present customers with options whose wording specifically comes from the exclusions listed in the policy’s fine print, such as “wear and tear.” This is done in the hopes that a consumer will click one of these options, not knowing they are selecting one of the exclusions to the warranty, the complaint contends.

“In sum, the portal menus are designed to elicit incorrect or contradictory answers, which Tarmo then uses to deny claims,” the suit says.

The filing cites a host of consumer complaints about the WorryNoMore Warranty, which express frustration at the allegedly systematic, wrongful denials.

Tarmo has routinely reneged on the promises made in the warranty’s marketing, the lawsuit alleges, arguing that the company’s treatment of customers’ claims is the result of a system that is “designed to manufacture grounds for denial.”

The Macy’s class action lawsuit seeks to represent all consumers who, within the applicable statute of limitations period, filed a WorryNoMore Warranty claim and were denied.

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