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Chrysler’s Lifetime Warranty Leaves Many With High Repair Bills

As Consumer World celebrates is 25th anniversary this week, we look back to 2007 when Mouse Print* published a story about a just-announced “lifetime powertrain warranty” that Chrysler was offering on its vehicles. The gist of the story was that while this warranty sounded great in their advertising, neither the local dealers checked, nor Chrysler’s website, nor their customer service department could provide us with any details about what exactly was covered. We wanted to check the fine print but could not until finally their PR department was able to provide a copy of the warranty. We then reported on a provision that could easily trip-up buyers.

Chrysler see dealer

As it turns out, over the years, scores of purchasers who brought their cars back for free repairs under the lifetime warranty were denied coverage because of that very clause we warned people about.

*MOUSE PRINT:

They failed to follow a tiny provision that was tucked into their warranty and required owners to have their car’s power train inspected by Chrysler within 60 days of each five-year anniversary of their car.

G. Inspections
In order to maintain the Lifetime Powertrain Limited Warranty, the person or entity covered by this Powertrain Limited Warranty must have a powertrain inspection performed by an authorized Chrysler, Dodge, or Jeep dealer once every 5 years. This inspection will be performed at no charge. The inspection must be made within sixty (60) days of each 5 year anniversary of the in-service date of the vehicle. You must have the inspection performed to continue this coverage.

In May 2020, more than two dozen Chrysler owners around the country filed suit against the company after being told that their warranty was void because they didn’t comply with the inspection requirement. Thus, they had to pay out of pocket for all needed repairs. Their lawyers argued that most of these car buyers had no idea that this was even a requirement, saying they never got the full language of the warranty, just as we had trouble obtaining it.

Chrysler petitioned the court to dismiss the case arguing that purchasers did not follow the requirements of the warranty to have their cars inspected every five years in order to keep the lifetime warranty in effect and therefore were not entitled to free repairs. The company also claimed that details of the warranty including the inspection requirement were contained in a press release and various news stories published at the time. (Note to Chrysler: consumers are not required to read press releases and news stories.) They also claimed that purchasers, depending on when and what model year car they purchased, received warranty information in various written documents at various times.

It may take years before there is a final decision in this case. In the meantime, if you bought a 2006-2009 Chrysler vehicle when the lifetime warranty offer was in effect but were subsequently told your warranty was void and you would therefore have to pay for repairs to the power train, save your receipts. The consumer lawyers in this case are trying to have those lifetime warranties reinstated and to collect damages for those who were improperly charged.

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Is Folgers Exaggerating The Number of Cups of Coffee Each Canister Makes?

J.M. Smucker, the maker of Folgers coffee, has been the subject of several recent class action lawsuits, all claiming the same thing — the company grossly exaggerates the number of cups of coffee that each canister is capable of making. (One case is here, and another case is here.)

Folgers

For this particular Folgers variety, the company claims you get up to 210 cups of coffee (6 ounce size) per canister. And the instructions on the back tell you to use one tablespoon per 6 ounce cup or 1/2 cup of grounds for 10 “cups.”

Well, those crafty class action lawyers measured out the coffee to see what you actually got in each container (see below) and one of them mathematically figured out how many tablespoons weighing about five grams each there were.

*MOUSE PRINT:

For the French Roast coffee pictured above that is supposed to make 210 cups, brewing the coffee by the cup only yielded enough for 156 cups; while making the coffee in batches of 10 cups at time still came up short by yielding only 195 cups.

We asked Smucker how they came up with their yield of 210 cups, and for comments about the lawsuits. Despite multiple requests, the company did not respond. However, in a Florida lawsuit, Folgers argued that the amount a can makes varies greatly because coffee drinkers have different preferences for a cup’s strength. As such, it concluded, their claims are accurate.

Folgers is not alone in getting sued over their yield claims. Last month, the maker of Maxwell House coffee was sued for allegedly doing the same thing.

Thanks to Truth in Advertising for the case.

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More Junk Fees Added to Car Rental Bills

Car rental companies are notorious for advertising low rates but then when you add all the taxes and fees, the price can jump up dramatically.

Recently a friend rented a car from Enterprise in the Boston area and he noticed a number odd extra charges added to his bill.

*MOUSE PRINT:

car rental fees

What these fees are for is not obvious. Poking around online reveals that the Commonwealth of Massachusetts is directly responsible for two of them, and indirectly for the third.

The parking violation surcharge, which one would think is only imposed if you got a ticket, is actually mandated by state law. It says that the rental company will not be liable for traffic tickets if it collects a sixty cent surcharge from the car renter and pays that to the city. (See G.L. c. 90, § 20E(i))

The $2 per rental police training fee is another creature of the Massachusetts legislature. They thought it was a clever way to help pay for police training. (See story.)

And lastly, the “VLC Rec Fee” is a made up fee by rental car companies. It stands for “Vehicle License Cost Recovery Fee.” It is designed to recover the estimated average daily cost per vehicle of the charges imposed by the government for the rental car company to title, register, inspect, and plate all vehicles in its rental fleet. Enterprise charges a whopping $2.80 per day for this.

Interestingly, Illinois has a statute about this particular fee that says if the total fees collected exceed the rental car company’s actual costs of registration, etc., it may keep the excess, but has to adjust the fee charged to renters downward the following year.