Fry’s Electronics Warranty Scam
I have long been a fan of consumer business which do not employ faulty advertising and deceitful customer service techniques as part of their business model. Unfortunately, what I once believed to be a sound company with a good heart towards service has turned out to be no better than the rest, and possibly worse than most. A title I once reserved for Best Buy - “Deplorable” has now officially been bestowed upon Fry’s Electronics.
Here is my tale:
On August 25th 2007, I purchased a Greenway HP Water Cooler from Fry’s Electronics in Concord, California for $169.99 in hopes of replacing a newly broken water cooler, slightly over a year old. As a result of having the previous water cooler break not over a month out of warranty, I also opted to purchase a 3 year extended warranty from Fry’s for an additional 29.95. Everything worked fine, and I felt good about my purchase until around June 11th, 2008 when I finally took it in for warranty service as the “cool” side of the unit was freezing shut, and thus non-functional.
Bringing it in for service was a pain, but I figured it was worth it if all would pan out, as long as I would not be forced to purchase a new one. After mountains of paperwork, a soaked receipt, and a bunch of angry service technicians (who seemed annoyed to be dealing with something else other than a computer) - I figured all was well. I called after a few days to check on the status, and things seemed to be progressing. About a week in, things turned sour; repeated calls to check on the status of the units repairs were met with phony answers, and outright lies.
Out of boredom, I called twice in the same day just to see if any progress had been made (It was a record month for heat in California, and I could’ve used some cold water), both times, I got different answers about where the water cooler truly was. The first time, it was being sent to the factory (Greenway) for repairs, and the other time, it was still being processed. This continued for a period of 36 days, when I was finally told a replacement was going to be shipped and available for pickup.
“Fine”, I thought — “brand new water cooler. Score!”
..Not so fast…
When I went to pick it up, the water cooler had been replaced with (what Fry’s calls in their “warranty” a “comparable replacement“). I chose to not pick it up, but to go back home and think it through. The new water cooler I was offered lacked some of the most basic functionality which I wanted (the reason I chose the Greenway model in the first place).
The first missing function was the “room temperature” water, a favorite choice of a certain family member with ultra sensitive teeth. Secondly, the new model was not energy efficient at all. Hot water and Cold water was “on-tap” at all times; with the previous model, you pressed a button and waited for 2 minutes or so, and you had steaming hot water, without wasting all the energy. It also did not appear to have a light [LED] built in (perfect for getting water late at night, without having to turn on lights and tripping over things), also functioned as a night light. On top of all of this, the controls are awkward, seem cheap, and are just downright unpleasant to look at.
Outraged to learn all this, I drive back to the store and attempt to talk to the service manager about the situation. I did not want this “new” model (as a duplicate replacement of the one I originally owned was not available) - I just wanted a full cash refund for the amount I had paid. He was very “programmed” and kept on insisting that the amount I was offered ($114) was all I would be able to receive. This was not acceptable at all.
He continued to say that the retail price of the new model was equal to the retail price I paid for the old one (169.99), but as Fry’s was out to make a profit, I would only be refunded the cost it is for Fry’s to give me a new one ($114), not the retail value itself. Ironically enough, on a piece of paper (which I doubt I was supposed to have), it stated that the cost of the original model I had was ($125), but no, I could not have 9 dollars more. No way!
During the whole ordeal, the “Service Manager” a Mr. Petrus Steinmann, was incredibly confrontational, at one point holding up a finger (not middle) indicating for me to “be quiet” (a practice not indicative of any kind of reputable customer service) so that he may continue to insist that it is not based on the value alone, and advise I contact “Risk Management” at their Corporate HQ. I demanded the number, and he cockily wrote it on the back of his very own business card (apparently being a gentleman). Ironically - the number he wrote was wrong, it may have been him being an ass, or a genuine mistake; either way he had a piss poor attitude. What happened to a customer always being right? Not when the Service Manager is “Righter” apparently. I observed two other employees standing around watching, at one point one of them (a young teenager) moves to stands next to Mr. Steinmann, a stance denoted (in my opinion) as “back-up”, or to be taken as intimidation (Not likely…as he was so short I probably could have kneed him in the face if this was really going to be a “school yard fight”). Oh the lessons you learn on the playground. Might does not equal right.
I called the Corporate HQ (1-408-487-4500) and asked for the “Risk Management” department…the secretary paused for a moment, said “What, Risk Management?” - and then transfered me to Legal (apparently, no such department exists; good call Mr. Petrus Steinmann - blame it on the invisible people!). Legal transfered me to “Customer Relations”. I left a message, no one has called back. I was not aware that “Just ignore them, and they will go away” was a valid business practice. Strike 3, Fry’s Electronics. You’re a fraud.
To Review:
Paid 199.94 (not including tax) for a Greenway Water Cooler + 3 Year Extended Warranty
Waited 36 days for customer service to finally figure out where my property was, and the status of the repair
Record hot temperatures in CA - No water cooler, and they don’t care to hurry anything up.
Now:
Warranty is void (non-transferable to new product) - Out 29.95
Offered “non-comparable” (though they’re ignorant enough to believe otherwise) replacement, or refund value of $114.00 - Out an additional $55.00
Total Loss: $84.95
Conclusion:
Fry’s should not be selling warranties if they are not going to honor them in a respectable manor. Hiding behind a legal team and reducing all liability (as a means for stupidity) is not a valid business practice. I lost money when all was said and done, and I will never purchase a single item at Fry’s Electronics in the future. I would love to give them a shot at making this all right; however, further research (C/O Wikipedia <3) makes it clear this is not the first time this has happened, and will defiantly not be the last.

Sue Massey Says:
Just wanted to say HI. I found your blog a few days ago on Technorati and have been reading it over the past few days.
Posted on July 27th, 2008 at 5:30 pm