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When offered by a retail company, a lifetime warranty is both a business strategy and a consumer benefit rolled into one, but with its fair share of pros and cons, it has become more controversial than ever.
On the plus side, Thingtesting reveals that lifetime warranties can make a huge impact by “demonstrating to customers that they stand by the quality of their products by offering lifetime warranties and repair schemes.”
In Thingtesting’s interview with Nudie Jeans, Circular Project Manager Kevin Gelsi explains, “Eventually, if you wear a piece long enough, something will break or tear. And we’re there for you. It communicates trust, loyalty and responsibility.”
As a result, “this commitment to keeping its products in circulation for as long as possible has helped Nudie stand out in a market where consumers are demanding more sustainable fashion options.”
From a sustainability perspective, other popular brands have translated the lifetime warranty into repairs that renew customers’ products. For example, “Patagonia has famously embraced the “for life” concept through its “Worn Wear” program, which allows customers to send in used Patagonia products for repair, resale or to be recycled. Patagonia says that it repairs around 40,000 items per year through the program, which launched in 2013.”
Finally, a connection is made between retailers and consumers since “repair and replacement schemes are also a powerful branding tool, giving customers a reason to keep interacting with the brand once a purchase has been made.”
In an extreme example, noted by USA Today, Lands’ End proved just how far they would go to honor their lifetime warranty and satisfy any customer when, “in the 1980s, Lands’ End sold an iconic London cab that was featured on the cover of its holiday catalog for $20,000. When the customer reached out to the retailer 21 years later, saying he wanted to return the taxi, Lands’ End gave him his money back and reclaimed the car — which now sits at the company’s main office in Dodgeville, Wis.”
Lifetime Warranty: The Bad
There are cons to these practices, however, and the first thing that most will notice is that a lifetime warranty usually demands a higher price point for a product upfront. According to USA Today, many retailers have abandoned their lifetime warranty guarantees because people have found ways to cheat and misuse them.
“A small minority of shoppers who have returned items salvaged from yard sales or purchased decades ago to get an upgraded version or a cash refund have left some retailers saying enough is enough,” USA Today reported.
This move by retailers has caused even more harmful repercussions as in the case when “L.L. Bean said that in the wake of increasing abuse, it was putting a cap on its legendary open-ended pledge, limiting most returns to one year.” L. L. Bean’s updated policy gave rise to outrage and “at least one lawsuit” by a customer who believed the business was breaking its promises.
Other companies that have either stopped or capped their warranties include:
- Costco
- Chrysler
- REI
Further still, consumers are warned to research all of the details about any type of warranty. “To be sure, some long-term guarantees may never have been as generous as they initially appeared. Restrictions are often buried in the fine print,” said USA Today.
Lifetime warranties are counterintuitive to the current trend of consumers disposing or donating items after they’ve been used extensively and replacing them with newer, most often improved versions. With the fast fashion industry booming more than ever before, sustainability has taken a hit along with the criticisms of various practices and consequences. This has also forced consumers to reflect on their spending habits and their effect on the planet’s resources.
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