Gibbs Law Group’s auto fraud lawyers filed a class action lawsuit concerning Interstate Battery’s car battery warranty. The warranty said that customers whose original battery failed could purchase a replacement battery at a prorated discount price based on how long the original lasted. The Interstate Battery lawsuit complaint alleged that the warranty did not comply with warranty laws and that Interstate Battery breached its warranty and violated consumer protection laws such as the Consumers Legal Remedies Act by overcharging for replacement batteries.
According to the complaint:
With each battery it sells, Interstate provides a “Limited Warranty,” which entitles Interstate customers to purchase a replacement battery at a prorated charge based upon the number of months the original battery lasted. Other retailers use the suggested retail price (or the price the consumer paid) as the price to be prorated. Interstate, however, calculates the monthly credit based upon an inflated “List Price,” which is not mentioned in Interstate’s Warranty, is about 20 percent higher than Interstate’s suggested retail price, and is even higher still than the price at which the batteries are typically sold.
Interstate Battery Settlement Announcement
The parties reached a settlement agreement that required changes in Interstate’s warranty practices as well as reimbursements to class members. Please view the Interstate Car Battery Class Action Notice for complete information about the settlement, including who is in the class and details about class members’ rights and opportunities.
Under the settlement, Interstate Battery agreed to reform its warranty practices, including by calculating the pro-rata warranty replacement price on the manufacturer’s suggested retail price rather than the “List Price.” The settlement agreement also required Interstate Battery to make its warranty language clearer and easier to understand, and improve its delivery method to make sure consumers receive a copy of the warranty.
The settlement also had a reimbursement program through which class members with receipts could choose between an $8.50 check card and a $12 product voucher, and class members without receipts could obtain a $5 product voucher. To learn more about the settlement, visit interstatebatteriesettlement.com.