Best Buy Dodges ‘Geek Squad’ Warranty Class Action Lawsuit

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Best Buy’s Geek Squad and Samsung have dodged a class action lawsuit claiming that the companies provide customers with fraudulent warranties.

U.S. District Judge Sharon Johnson Coleman dismissed class action claims that Best Buy’s “Geek Squad Protection Plan” is a warranty that doesn’t live up to its promises.

According to Judge Coleman, the protection plan doesn’t qualify as a warranty at all, and instead qualifies as a service contract. Based on this distinction, the Illinois federal judge determined that the class action allegations weren’t valid.

The Geek Squad class action lawsuit was filed by Tawanna and Anthony Ware who claimed that they purchased a Samsung plasma TV from Best Buy in 2013. They say that at the same time, they purchased a five-year Geek Squad Protection Plan, claiming that the plan promised to pay for service, repairs, and a replacement TV if necessary.

The Wares argued that the Geek Squad Protection Plan qualifies as a warranty, which is subject to certain standards under the Magnuson-Moss Warranty Act.

However, they claimed that Best Buy failed to live up to the protection plan’s promises because they chose how they would compensate customers for issues with their TV, which included giving customers a voucher for a new TV.

Samsung and Best Buy first attempted to have the Geek Squad Protection Plan class action lawsuit dismissed in October, claiming that the customers’ allegations were time-barred. They withdrew this dismissal motion in November.

The Wares then amended their claims, and the companies and made a new move to dismiss in December. It was this move that was approved by Judge Coleman.

The federal judge determined that the Geek Squad Protection Plan failed to satisfy the “express statutory definition of the term ‘warranty’ for the purpose of the Magnuson-Moss Act,” so the claims brought forward by the Wares under the act were not valid.

According to Judge Coleman, the definition of what qualifies under the Magnuson-Moss Act is determined by how the warranty or protection plan is priced.

She stated that the protection plan is listed separately on the Wares’ receipt, meaning it was a separately purchased item, it was not a warranty for the item. However, if the Geek Squad Protection Plan came included in the price of the item itself, it would be legally considered a warranty, according to Judge Coleman.

The Wares tried to combat this distinction by claiming that the Geek Squad Protection Plan counted as a warranty and was part of the same purchase because they received a discount for “bundling” their purchase of the TV and the protection plan.

Judge Coleman rejected this argument, saying that “the fact that the Wares were offered a discounted price for a consolidated purchase, however, is not indicative of whether their television purchase and their purchase of the Geek Squad Protection Plan were part of het same bargain.”

She goes on to say that “to the contrary, the Wares’ repeated allegations that they paid separate amounts for the ‘bundled’ television and Geek Squad Protection Plan purchases clearly indicate that the Geek Squad Protection Plan was not part of the ‘bargain’ for the television’s purchase.”

Judge Coleman also stressed that the Magnuson-Moss Act refers to warranties that cover the materials and workmanship of a product, and does not refer to service plans that cover wear and tear on products, as well as preventative maintenance.

The Wares are represented by Thomas Cronin of Cronin & Co. Ltd. and Paul Rothstein of the Law Offices of Attorney Paul S. Rothstein.

The Best Buy Geek Squad Protection Plan Class Action Lawsuit is Ware, et al. v. Best Buy Stores LP, et al., Case No. 1:18-cv-00886, in the U.S. District Court for the Northern District of Illinois.