Warrantech, TAG Warranty Corp. Have Breached ‘No Lemon Guarantee,’ Consumers Allege

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A proposed class action alleges Warrantech Consumer Product Services and TAG Warranty Corp. have “routinely and uniformly” fallen short of the “no lemon guarantee” outlined in their extended service plans. 

One of the plaintiffs in the 17-page case, a Chickamauga, Georgia consumer, alleges the companies breached their “no lemon guarantee” when they failed and refused to replace his Kitchen Aid refrigerator after at least 11 service calls or repair attempts between July 2020 and February 2022. 

The other plaintiff, also a consumer from Chickamauga, similarly alleges Warrantech and TAG breached their “no lemon guarantee” by failing and refusing to replace her Jenn-Air microwave/wall oven combo after more than three service calls or repair attempts within 12 months. 

According to the lawsuit, both consumers bought the appliances at issue from Siano Appliance Distributors, and the suit alleges the plaintiffs’ experiences are “not unique.” 

“Warrantech is not accredited by the Better Business Bureau and has a customer rating of 1.14/5,” the case states. “The lowest possible customer rating is 1.0/5.” 

An extended service plan is a contract that’s separate from a manufacturer’s warranty, the complaint says. A key distinction between the two is that an extended service plan covers product failure in general, subject to certain exclusions, while a warranty strictly covers defects in workmanship and materials, the suit states. 

Per the case, many extended service plans come with additional benefits, including coverage for theft or accidental damage, replacements should a product fail a certain number of times, and access to priority service and technical support. 

The terms of the defendants’ extended service plans stipulate that they would provide consumers with a replacement product after more than three service calls or repair attempts within a 12-month span, the suit relays. 

The lawsuit looks to cover all natural persons in the United States or its territories who bought a Warrantech extended service plan containing a “no lemon guarantee” who have had more than three service calls or repair attempts within any 12-month period between April 2016 and the present and have not received a replacement product. 

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