Whirlpool seeks dismissal of repair plan class action

Update:

• Whirlpool asked a federal judge to throw out a class action lawsuit that alleges it, along with WarrantyGuard, sold Whirlpool extended service plans that do not cover the costs of a replacement or all repairs.
• The company filed the motion to dismiss July 15 in a Washington federal court, arguing the plaintiff can’t claim she couldn’t have known about the details of an extended repair plan for her dishwasher because the full terms are online and easy to access.
• Plaintiff Hadassah Shellenberger alleges the companies say the extended warranty will cover the required labor and parts for warranty issues on the appliances at no out-of-pocket expense to consumers but, instead, the plans allow Whirlpool to exercise a buyout on devices capped at 75% of the purchase price of the appliance.
• Whirlpool hit back in its motion to dismiss, saying, “as another federal district court has previously held, the buyout option is clearly and conspicuously set forth in the contract, and it is also disclosed on a webpage plaintiff says she viewed.”

Whirlpool class action overview: 

• Who: Plaintiff Hadassah Shellenberger filed a class action lawsuit against WarrantyGuard and Whirlpool Corp.
• Why: The companies are accused of selling Whirlpool extended service plans that do not cover the costs of a replacement or all repairs.
• Where: The Whirlpool class action was filed in federal court in Washington.

(May 21, 2024)

A consumer filed a class action lawsuit against Whirlpool and WarrantyGuard for allegedly selling Whirlpool extended service plans that do not cover the costs of a replacement or all repairs.

The companies say that the extended warranty will cover the required labor and parts for warranty issues on the appliances at no out-of-pocket expense to consumers . However, the plans allow Whirlpool to exercise a buyout on devices capped at 75% of the purchase price of the appliance, according to the Whirlpool class action.

Appliances covered by the plans include Whirlpool, KitchenAid, Amana, Maytag, Kenmore and JennAir. 

“The consumer cannot use these funds to purchase a comparable appliance unless she supplements the Settlement Payout with her own funds,” the Whirlpool class action says. “Nor can she use the Settlement Payout to have a third-party repair service fix her appliance because, under the terms of the Service Contract, the appliance becomes Defendants’ property upon the exercise of a Buyout and must be surrendered to them upon their request.”

Whirlpool extended service plans generate unfair profits, lawsuit claims

Whirlpool generates unfair profits for itself with the buyout clause, the Whirlpool class action claims. Customers are often unaware of the clause until they need a repair and face the buyout, the plaintiff says.

The Whirlpool extended service plans also fall short of what is advertised for other reasons, Plaintiff Hadassah Shellenberger claims in the lawsuit.

“Defendants required Shellenberger to find her own repair technician to resolve the issue, pay out-of-pocket costs to the repair service, and then seek reimbursement from them because, according to Defendants, they had no repair technicians in her area,” the lawsuit says. “She tried but was unsuccessful. None of the technicians she contacted were willing to perform repairs under the terms Defendants required.”

Whirlpool also faces a February class action lawsuit alleging it manufactured and sold Whirlpool refrigerators with defective wiring that can pose a safety hazard.

Have you purchased a Whirlpool extended service plan? Let us know in the comments.

The plaintiff is represented by Evan E. Sumer of the Law Offices of Evan Sumer along with Gregory W. Albert and Tallman H. Trask, IV of Albert Law PLLC.

The Whirlpool class action lawsuit is Shellenberger v. AIG Warrantyguard Inc., et al., Case No. 2:24-cv-00657, in the U.S. District Court for the Central District of California.

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