JB Hi-Fi - No Longer Offering Extended Warranties On Drones and Wanting To Refund The Warranty I Purchased

A week ago I brought a DJI Mavic Pro from JB HiFi, I purchased with it the extended warranty for $199 which made the warranty extend until the year 2022 . Usually I'm sceptical for any extended warranty firstly because I'm aware of the ACL, that and because it is a drone, I know it may cause a lot of "he said, she said" if it like, fell out of the sky due to a fault but the thing is damn expensive so I thought I'll cover my butt just in case. Considering the DJI refresh cost and time-frame it seemed reasonable. Additionally I've used the warranty once before for a different product and it has worked out alright with no fuss… so I was overall happy with the service I have received from them.

The question(s): Today (one week later) I get a call from the store saying the rep shouldn't had sold me the extended warranty, something like the head office had advised them on the 1/07/18 that they are no longer offering them on drones, so I have to come in sometime and get the refund. Do I: 1) Accept the refund? 2) Refuse and get them to honour the offer anyway, should it be required in the future?

Is 4 years a "reasonable time-frame" for a $1200-$1500 drone, for the ACL? I would think so, but it isn't like a TV just sitting there, my biggest concern is if there is a fault while using it so I have a feeling after 12 months of normal warranty (or even during) regardless it'll be a bit of a uphill battle.

Any (good :P ) advise would be most appreciated!

Poll Options expired

  • 24
    Accept the refund
  • 8
    Don't accept the refund
  • 1
    ACL would cover it anyway

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  • +3

    If you don't take the refund and then try to claim later on I doubt you would get very far. They would have record of trying to refund you the price you paid and somehow use that against you?

    Can you buy extra warranty through DJI? I thought you could get DJI refresh or something.

    • +1

      I'd contact who-ever passes for consumer affairs in your state.

      Get legal advice is my opinion.

  • +1

    Check the T&C of the JB Hifi warranty and see if it allows them to rescind validity at any time for any reason. If no, just don't contact them back.

    • Nothing there just a cooling off period of 15 days if I want to cancel.

  • +2

    I'm willing to bet there will be things the extended warranty covers that the ACL doesn't cover. You'll have to read the policy on the extended warranty to see what those are (e.g. expedited service levels, accident cover, new-for-old replacement etc would not generally be covered by the ACL). Especially as it pertains to drones, you might well get service if the issue could be a defect, or could be a result of your operation of the drone (flying into a tree, falling out of the sky). ESPECIALLY if the defect causes it to fall out of the sky, it would be incredibly hard for you to prove that the defect caused the accident, as opposed to the accident causing the damage.

    Tl;dr - I wouldn't have high hopes of claiming under the ACL to begin with.

    Having said that - I'd wonder how easy (if possible at all) it would be to claim under the extended warranty in the future if they literally don't have it as a sellable service. It could be that if you claim under it, they'll refuse, you'll have to negotiate with them, and they just refund you what you paid anyway.

    So on that note - take the refund.

  • +6

    Okay, so JB Hi-Fi have sold you a warranty? It says that JB Hi-Fi promises to deliver some sort of service to you? And you paid for it? Congrats, you have a binding contract with JB Hi-Fi, for whatever it says on the extended warranty.

    And no, it doesn't mean a god damn thing that they've called you and want you to take a refund. It particularly doesn't matter that they now don't want to honour it - stiff shit, that's not how contracts work. And yes, the ACL can interact with your contract in some possibly complex ways, but that's not the main thing you need to think about at the moment.

    The only question you need to ask yourself is whether you'd prefer the warranty or your money back. That'll be up to you, and I'd suggest it mainly depends on what exactly JB Hi-Fi have promised you with that warranty. Accidental breakage, for example? Shit yeah, keep that warranty. Theft? Maybe, I suppose, if it's not already something that your contents insurance covers. Repairs (that aren't due to you flying it into a wall)? That should be covered in the ACL.

    It might be that the warranty has some weaselly terms in there - something like 'JB Hi-Fi reserves the right to terminate the warranty at any time', or to alter the terms, or somesuch. That's when you'd need to start relying on the ACL, and there are a few avenues that it could offer you. You might get their rights to vary the contract struck down as unfair terms in a form contract. You might broadly challenge it as deceptive and misleading conduct - eg, that selling you a service as a 4-year warranty is deceptive and misleading if the actual terms say that the company can fail to honour it. If it ends up going that far, though, you'd have to ask yourself if this was an issue you were willing to litigate over.

    • -2

      Don't be stupid the warranty contract will almost certianly have an exit clause in it.

      • You might want to read up on the ACL's handling of unfair contract terms

        • -1

          Any contract written by a mildy competent lawyer outlines the exit terms.

          What's unfair about the contract getting cancelled and the customer getting a full refund, when no claim has been made?

  • +2

    Drones are definitely in a category that aren't eligible for the extended Care program. However, as a result of the price of the drone JB will cover you for a minimum of two years under their voluntary policy (which should be outlined in the blue book given to you alongside the yellow extended Care one)

    I would take the refund as it never should have issued to begin with.

    • I would take the refund as it never should have issued to begin with.

      It doesnt matter that the warranty shouldn't have been issued by JB to jmathoes.
      jmathoes had no prior knowledge of JBs internal process and what can/can not be sold with a product.

      So the result is that JB has entered a contract with jmathoes to provide an extended warranty on the drone.

      jmathoes should only take the refund if they want to change their mind under the 15 day cooling off period.

      Plus the yellow book (part of the contract) issued to jmathoes does not exclude drones so there is nothing that is part of the agreement that will stop jmathoes making a claim in the future.

  • +2

    schedule the refund for four years from now

  • Take the money and run.

  • Cheers for the replies so far. So I dug up the t&cs, I received both booklets, the blue one @Staary mentioned which is "understanding your rights" (from my understanding it's basically repeating the ACL and sounding all nice, which it is nice they put it in writing buuuuut pretty standard) - that expires in July 2020. Now the yellow one which is "extended care" (the one they want to refund), that goes for a further two years till 2022. That one has 2 options, Replacement Cover Plan or Repair Cover Plan. I wasn't aware if you could pick either or, but I got sold the Repair Cover Plan.

    The only excluded products are Air Conditioners or Mobile Phones, the replacement plan also excludes Whitegoods. So nothing in the documentation regarding certain electrical products such as drones. This makes sense as the person stated on the phone it was only a recent change and with a quick google there has been people that have purchased drones in the past with the cover as it is transferrable.

    So, why this product seemed attractive to me, which both the rep and manager pointed out was that up until July 2022 other things I may not have thought about like, if the gimbal stuffs up, the controller fails (apparently could be common?) or say the GPS chucks it, they send it off for repair, if it takes too long or costs too much they will either replace it or refund me. Furthermore in the yellow book the other benefits were 15 day cooling off period (for me), tech assistance, worldwide cover, reasonable wear and tear and transferability. The repair option also includes no lemon guarantee (replaced after 3 unsuccessful repairs), 30 day max repair time-frame guarantee (or replaced), loan product (if repair is longer than 10 working days) and things that don't matter to me like $200 reimbursement for spoiled food or laundry costs.

    The controller alone is approx $250, that alone seems profit if the thing mucks up in 4 years, also should cover the controllers battery as it isn't replaceable. The gimbal isn't exactly super strong feeling either… so maybe that too. Tbh I was more worried it falling out of the sky due to a fault, like a motor burning out or something… very hard to prove though, maybe on the app as you can show its movements and map that at 120mtrs it falls out of the sky for no reason, you could prove it. Even harder though if it fell into the sea. Probably the whole reason they don't want to cover them anymore. If say the controller mucks up in year 3 or 4 and they have to refund or replace the entire device that sounds like a win for me, as no doubt they won't stock anything to do with that model anymore, even DJI.

    The DJI refresh is more like an insurance for a year, you pay $169 and say, I crash it and destroy it (including in the water) for $139 they replace it the first time and the 2nd time it's $199. Still cheaper than $1000+ though.

    I'm tempted like @LukeZor and @HighAndDry mentioned and insist of keeping it as nothing in the terms say I can't. In year 3 or 4 the $199 cost could be worth $1000+ with the option to get a current model or something else. The same thing happened with a GPS I brought 3 years ago (when a phone couldn't exactly do a good job), it wasn't performing, they refunded me what I paid for it and it went towards this drone, which was significant as it was the top of the range back then, otherwise I would had probably waited till they became a bit cheaper or something.

    • See my comments above, do not accept the refund if you want to keep the warranty.

  • +3

    Refund the warranty… And the drone. Say you wouldnt have purchased it otherwise. Go find a better deal with extended warranty.

  • +2

    Keeping the Extended Warranty sounds like a good idea to me. If they insist on trying to refund you maybe you can suggest that they would be willing to pay the contract out. $800 sounds fair to me, the refunded $199 and about half the cost of a drone.

  • Quick word on the DJI Refresh program. If you haven't bought it within 48 of activation. You'll need to make a ten minute video of you flying the drone to show it still works before you can get the care plan.

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