PSA: Costco Does NOT Have a "Forever" Warranty

Warning: long post.

TLDR: Note to anyone buying things from Costco expecting to rely on the belief they have some sort of "extended/awesome/second-to-none/forever warranty".

I'm posting this as a public service announcement as there seems to be a lot of misinformation/misunderstanding going around about Costco's "warranty".

Here is my personal experience. I purchased a (large and reasonably expensive-ish/high range at the time) Samsung Plasma TV approximately 7 years ago specifically from Costco with the express reason and understanding (could get the same price from other retailer) that should anything go wrong with the TV Costco would cover it with their "under warranty as long as you keep your membership active". At that time, I didn't do any actual due diligence beyond asking a staff member about it. I was told that as long I keep my membership the TV was under warranty - or at least words to that effect.

The TV died for no apparent reason last night. It has been working fine for many years with no issues. Last night it suddenly died while watching TV. Nothing unusual or interesting was happening at the time.

Costco's website does not list any information regarding any "warranty", but rather a 100% satisfaction guarantee, which says the following at the time of posting (link):

Costco's 100% Satisfaction Guarantee

One of the reasons why a Costco membership gives you incredible value is because we offer you a 100% Satisfaction Guarantee on your membership and purchases.

We promise that if we fail to deliver on quality produce, prices or services, we’ll refund your purchase*. This is in addition to your rights under Australian Consumer Law.

Additionally, if you’re dissatisfied with your membership for any reason, we’ll refund your membership fee in full at any time.

If you have any questions or concerns, visit our membership counter for assistance.

Exceptions*
Diamonds and watches

Members returning a diamond l.00ct or larger must present all original paperwork (IGI and/or GIA certificates), upon which you’ll receive a jewellery credit memo. >Refunds will be approved upon positive verification. This process may require 2–5 business days.

Refunds on all watches will be approved upon positive verification. This process may require 2–5 business days.

Special order kiosk and custom installed programs

Custom product(s) manufactured to our members personal and unique specifications cannot be returned or refunded except for warranty repair/replacement due to failure to meet specifications.

Hearing aid products

Hearing aid products are not covered by the 100% Satisfaction Guarantee policy and are instead covered by the terms of the purchase agreement signed at the time of purchase

In the future, Costco may restrict its return policy regarding other products. Restrictions will be shown at the time of purchase.

I've also read their Member Terms and Conditions (link) which says this about the Guarantee:

RISK-FREE 100% SATISFACTION GUARANTEE
On Membership: We will refund your membership fee in full at any time if you are dissatisfied.
On Merchandise: We guarantee your satisfaction on every product we sell and will refund your purchase price, with the following exceptions:
Diamonds: l.00ct or larger: Members returning a diamond over l.00ct must also present all original paperwork (IGI and/or GIA certificates) at which time they will receive a Jewellery Credit Memo. Refunds will be approved upon positive verification. This process may require 2-5 business days.
Refunds on all watches will be approved upon positive verification. This process may require 2-5 business days.
Special Order Kiosk and Custom Installed Programs: Custom product(s) manufactured to our members personal and unique specifications cannot be returned or refunded, except for warranty repair/replacement due to failure to meet specifications.
Hearing Aid Products: Hearing aid products may not be covered by the 100% Satisfaction Guarantee and are covered by the terms of the purchase agreement signed at the time of purchases.
Costco may in future restrict its return policy regarding other products. Restrictions will be shown at time of purchase.

From doing fairly extensive reading on this on forums (OZB, Whirpool, etc.) it is clear that there is still a general belief that Costco's "Warranty" is forever, etc. This is most certainly not the case. (They don't offer a warranty beyond the manufacturer's warranty. Rather, it is a a satisfaction guarantee which to be fair it may well still be better than many other retailers.) It seems to be pretty much closer to the ACL consumer guarantee in that they MAY allow you to return it for a reasonable period of time - whatever that period of time is, is up to them.

It may be easier to replace an item from Costco than going through an ACL claim with other retailers, but do not expect it to be anything like "forever" or even much (or at all) beyond what the ACL might give you from any other retailer.

Importantly, there are many people promoting the idea that Costco's "amazing warranty" is a reason to consider buying things from them over other retailers. (I myself was in this category until today.)

I accept that a retailer cannot probably profitably exist returning 20-year old expensive items for a full refund but perhaps they could be clearer on the limitations and rules of their guarantee because it could be misunderstood.

I hope that this helps others learning from my actual experience.

[Edit: forgot to explain that the TV died for no apparent reason and it wasn't just that I was trying to return it for a new one after using it for many years]

[Edit2: I have removed parts that described my personal disappointment and seemed to "have a go" at Costco as they were not relevant and undermines my actual intention of trying to help others who might be under the same mistaken impression as I was]

[Edit3: Seems some people want to know the background of what happened after the TV broke so here is the short version if it helps. I contacted Costco and they had a store manager call me back. Regarding my belief that there was a "warranty" as long as I kept my membership valid, he did say "someone may have told you that at the time but it's not right" or words to that effect. He did in the end offer to give me $200 off any TV I bought from them as a replacement. The conversation was pleasant in tone and I never demanded a refund. He was nice about it and I have no specific gripe with how they handled it as such. Yes, I am disappointed and I do think their guarantee is unclear.]

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Comments

  • +2

    The tl;dr needs to be at the top

    • +1

      Thanks. Moved.

      • Your tl;dr isn't a summary, more like a title/subject.

  • +32

    I believe they changed this for the reason people were using it to upgrade TV's unjustly.

    Can't blame em.

    • +3

      I would agree but from what I can tell they did that in the US. There is nothing I could find that indicates they did the same here in AU. It may be an internal policy, but this is part of my gripe - it should be clear to the consumer what the policy is prior to purchase. Also, if they changed it at some point, people who purchased prior to the change should not be penalised. Not to mention that there is a difference between "I don't like it anymore" and "It broke down".

      • +11

        From all that I read of your post, they never had that warranty here in Australia and you were just under a misapprehension that it existed at all…

        • +6

          This may be true in a strict sense and if so I am one of many under that misapprehension.

          • -4

            @btech: "one of many" - you're projecting your belief based on what you read on the internet. Do you have a source to back up your claim that "many" people believed they had an unlimited warranty?

            • +11

              @OzBrogains: I also believed they had Lifetime warranty, heard it at least thrice here on various Costco posts and elsewhere when talking about Costco.
              But can't confirm, as I don't shop there, nor have membership.

              • -1

                @capslock janitor: Surely the common sense in you would ask yourself "if it's too good to be true…"? Do you actually think you can buy a product and return it 30 years later after it's broken?

                • @OzBrogains: This is where the membership comes in mate, maintain it active and all for $60pa. At least that's the belief.

                  I also heard that this is the practice in the US.

                  • @pxrnm: You think it's reasonable Costco give a lifetime, perpetual and condition-free warranty on everything you buy?

            • +5

              @OzBrogains: I also am 'one of many' based on many posts from different sources here on ozb

    • What's the implied warranty on TV's nowadays?

  • So what excuse does Costco give you when you ask for warranty claim?

    • +1

      They said "it's quite old" or something to that effect. Also that "we couldn't stay in business if we had to refund things after a long time". I do understand this sentiment but again, they should be very clear about the policy otherwise it could be considered misleading.

      • +3

        I do understand this sentiment but again, they should be very clear about the policy otherwise it could be considered misleading.

        How were they misleading? Did they actually tell you that the TV was under warranty as long as you kept your membership?

        • +4

          They did tell me what OP mention in the thread, as long as you maintain your membership than the warranty will be honour when I bought my TV back in 2012.

          It is what I being told when I ask them what is the cost of extended warranty on the TV I am going to buy.

        • +2

          Yes, that is what I was told by a staff member at the time of purchase. As I mentioned in the original post, I didn't verify beyond taking it at face value (e.g. by asking where the policy was in writing) so that's on me.

          Perhaps it's unreasonable to say misleading and better to say unclear and easily misunderstood.

          • +6

            @btech: Arguably, staff members act as agents and what they tell you should be able to be relied upon

          • @btech: Once there is a written contract in place verbal contracts and promises are superceeded and irrelevant if not incorporated to the contract. Get it in writing before you hand over the money and keep a copy.

          • @btech:

            As I mentioned in the original post, I didn't verify beyond taking it at face value

            If it's not in writing, it didn't happen.

        • +1

          If you had that in writing, they'd have to honor it.

  • What was the issue with your Samsung TV?

    • It was on and then suddenly it was dead. Completely dead with not a sign of life. Nothing obvious happened as such to cause it.

      • +6

        Does the power indicator light turn on?
        Do you hear a click or anything when trying to power it on?

        Old Samsung TVs had a common issue with their power supply boards, where the capacitors they used were cheap and would fail after a certain amount of time. 7 years is a good run, but it may be a simple process of removing the faulty capacitors and replacing them with new ones, which I've done for several Samsung TVs.

        You would need to have a little bit of experience with soldering/desoldering if you want to try fix it though.

        • It's as dead as a doornail. Zero sign of life. From one moment to the next while it was on, just watching TV. Was plugged into a surge board so unlikely to be that.

          I guess I'll pull out the old multimeter and have a go since it's an expensive and useless wall ornament now.

          • +2

            @btech: The capacitors will be easy to tell if they're faulty, the back of them will bulge and become slightly spherical.

            • @Antares: It's probably something like a reg. I've fixed a number of old (admittedly usually cheap Chinese) LCDs with busted regs that are usually only a few cents!

        • My samsung plasma made a loud pop when I was watching youtube and it scared the sh1t outa me, any ideas?

          I was going to get a y board from ali but for 50 bux its a bit of a gamble

      • +3

        Thanks for the PSA - I'm not a Costco member however know of family/friends who are and have spoken about their 'excellent' warranty terms so will let them know that it's not all that it's touted to be.

        btw - We used to have a Samsung plasma TV that stopped powering on. We were going to replace it as it was ~10 yrs old at the time & my in-laws were incredulous that we hadn't considered getting a technician to look at it for repair. So, we did & TV was fixed for ~$150 and is still working 3 years later.

        • +1

          Thanks for your comment on both counts.

          I think checking what's wrong with it is probably worth a shot.

          • +1

            @btech: could well be just a CAPACITOR issue which is the same for monitors - after time or heat it blows up / expands / bulges and dies… causing the whole unit to "not function" change that and …. bob's your uncle! viola! but then again i'm oversimplifying it altogether….

            hope your tv works again!! no tv no lyfe!

  • The reason OP had, ie the issue with the TV, to trigger the warranty is not clear at all. Maybe there is no issue with the TV at all…..just that OP is satisfied with the TV no longer and thought he could return it 7 years later for no reason for a full refund.

    • This is my bad. It took me a long time to write up and I missed that point. The TV is completely dead for no apparent reason from one moment to the next.

  • +24

    You're the only one who expects a 7 year warranty on a TV. You're being unreasonable.

    • +19

      Thanks for your feedback.

      • +6

        The TV may have failed because of a power surge or some other non-warranty reason. The good news is that your replacement TV is going use much less power, have a better picture, be much, much cheaper and probably larger as well.

    • +10

      Actually there was a court case and the MINIMUM for a 'good brand' TV is 6 years, maybe 7. It was a Panasonic one that is 6yr. This is now the precedent.

      http://www8.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VCAT…

      "The parties agree that the expected life of the television is 8 years."

      There you go.

      • -4

        Don't selectively quote. The 8 year figure was irrelevant to this case, they could've agreed it was 80 years for all the difference that would make:

        Purchased 31 October 2011 for $1,350.00.

        Developed a fault in or about March 2014

        Relevant time frame here is 2.5 years. The case itself was in August 2014.

        • +7

          …..It's part of the findings lol. ACCC law is vague, and if Panasonic says their medium end TV is expected life 8yrs, that's what it is. It's setting a precedent for future TVs. But whatever I ain't gonna argue.

          • -3

            @StickMan: It's a xCAT decision, they don't really serve as binding precedent, though if a finding is relevant to the decision, it can have persuasive power.

            Here though, it's not, and it was by agreement (so not an issue in dispute that the VCAT member made a real decision on anyway).

    • +5

      Generally a high end TV is expected to last 11 years. Midrange is expected to last 8. It's all grey though as it's only defined as "A reasonable amount of time".

      https://www.choice.com.au/about-us/media-releases/2018/appli…

    • +4

      What website is this?

      It depends on the purchase price, but I would 100% expect 10 years or more out of any mid-range or higher TV.

      OP isn't unreasonable in expecting > 7 years life.

    • +1

      ACL != warranty. Any $1k TV should at least continue to turn on after 7 years time. I have a cheap $300 sony tv that has been use daily for 5 years and it is 100% functional. If an expensive TV has a major fault like not turning on after seven years, and there are no precipitating/external factors, then a remedy should be provided by the retailer.

      • When a product is obsolete and discontinued so is its "lifetime" warranty.

        Considering a 7 year old $1000 TV is worthless whether it is working or not, what do you think is reasonable?

    • I agree… i think 7 years is about spot on what i would expect life wise from a modern TV. Anything more is a bonus.

  • +4

    TBH i think 7 years is a fair innings (tad short but hey) for a TV and expecting a lifetime warranty is a bit over the top as such (nothing's built to last forever), although a bit dodgy from Costco to be offering lifetime warranty's and changing the T&C's later on.
    I feel you'll only have a leg to stand on if you have the original T&C's on you from when you bought the TV, even then, kinda nice of them for giving you $200 when they don't really owe you anything. In today's day and age is a fair chunk out of a bloody good TV.

    • +1

      although a bit dodgy from Costco to be offering lifetime warranty's and changing the T&C's later on.

      Did they actually say the TV had a lifetime warranty?

    • +1

      although a bit dodgy from Costco to be offering lifetime warranty's and changing the T&C's later on.

      Urban myth….. was never offered in Australia

      • Urban myth

        One that they are probably aware of and happy not to clarify

  • +4

    OP you're about 4 years too late…..

    https://www.ozbargain.com.au/node/285094

    and another blog post that even in the USA lifetime isn't lifetime, and about 2 years

    https://www.doughroller.net/personal-finance/is-costcos-life…

    • +3

      Yep. It stopped in aust a few yrs ago. Although I still hear some customers talking to each other saying there’s lifetime warranty 😂

      • +6

        If a lifetime warranty was offered 7 years ago, isn’t that the contract OP entered into with Costco?

        It’s irrelevant if the goal posts move later for other consumers

    • +1

      Well, egg on my face. I thought I'd read every post mentioning Costco warranty but I didn't see that one. The most relevant one. :facepalm:

      One thing is for sure. Confusion abounds around this topic to this day. This thread is evidence of that.

      Maybe my post will help dispel the myth (which was my intention of creating it even if perhaps my own personal disappointment coloured its public benefit intentions). It would be nice of Costco to make their policies clearer and more easily publicly accessible as for sure they must be aware of this apparent misconception and have to deal with this sort of thing regularly.

      • -7

        "Confusion abounds around this topic to this day. This thread is evidence of that."

        What?

        That's like saying

        "I'm going to start a thread that questions the confusing nature of red lights. Therefore, that thread will be evidence that red lights are a confusing beast".

        • +5

          You have misinterpreted what they meant in the text you quoted. When they say "This thread is evidence of that", they mean that there are more than 1 ozbarginer saying that they thought they also had life time warranty and I see at least 1 person say they were specifically told this when buying a TV. Therefore it is safe to say there is still confusion around this topic and this thread is evidence of that…

          • -4

            @Nebargains: I daresay anyone who truly thinks Costco offers a question-free and unlimited returns policy is an idiot. Any said idiot who thinks like that should feel free to downvote this.

            • @OzBrogains: Mate, no body is thinking Costco giving out unlimited warranty without a catch. It's the membership and this was touted quite frequently among the customers in the beginning when they opened shop.

              So, please stop beating the strawman, no one is thinking the way you set it up to be.

              • @pxrnm: Check if Costco has discounts on specs. Obviously you can't read because a lot of people in this thread think an unlimited warranty is given without a catch.

  • +2

    100 or 200 towards a new TV isn't meeting you halfway, 50% off would be.

  • -4

    Not misleading at all. Your sweeping generalisation that others are under the same uninformed assumption as you is also concerning.

  • Somebody bought a wetsuit for me from CostCo.
    It had a near identical brand name to a top name brand.
    It fell apart after 10 uses (2 weeks).
    When I contacted CostCo they told me that only the purchasing member can return the wetsuit for a refund. Of course this was incredibly difficult to arrange.

    Moral of the story:
    1. Some items in Costco with Big Brand ripoff names (Similar but Slightly altered) are just rubbish quality and deliberately misleading and deceptive (China style clones)
    2. Dont buy anything for anyone other than yourself and only if you are a member because you are just going to have huge hassells wih Costo.

    Having said all that thier food items are excellent!

    • +2

      Some items in Costco with Big Brand ripoff names (Similar but Slightly altered) are just rubbish quality and deliberately misleading and deceptive (China style clones)

      Costco doesn't deal in knock offs, do some reading and you'll find these brands are making 'special' items just for Costco, ie the special multi packs for example that are not sold anywhere else.

      Also google brand outlet specials and you'll see this isn't a new concept.

      Brand names have been making a cheaper version of their products that is only sold in brand outlet stores and places like costco. ie business shirts from a major brand, the products sold via the full RRP priced stores are totally different to the ones dumped out via the outlet stores.

      The idea is that people who shop at outlet stores don't shop at the fancy high end brand stores.

    • +4

      When I contacted CostCo they told me that only the purchasing member can return the wetsuit for a refund.

      Is that surprising? Costco is a members-only store, they only sell things to their members. I wouldn't expect them to deal with non-members for anything.

      1. Dont buy anything for anyone other than yourself and only if you are a member …

      You can only buy things if you're a member.

  • Hum… I think the terms of their satisfaction guarantee could certainly be clearer on the limits of the guarantee - particularly in regard to time.
    However, I also think that expecting a full refund on a 7 year old tv is pushing it.

    • +1

      I agree (about getting a full refund on an old TV - unless that's their guarantee, but it's certainly not clearly written that it is) and it's the reason I contacted their membership service team with a question to clarify rather than fronting up to the store with the TV demanding or even expecting a refund. To be honest, I would have been perfectly happy with a repair but they don't offer that option. In any case I never asked them for a refund. I had a very civilised conversation with them about my (apparently mistaken) understanding and their actual policy. I was actually just asking about what I was told regarding "warranty for as long as you're a member" but as it turns out that's not a thing.

      • +1

        The repair itself is probably quite simple with TVs. So few people actually repair appliances these days though so you may be paying a few hundred for the repair. Still probably cheaper than a new one.

        • +1

          I may go down this route.

  • +6

    Thank you for taking the time to post about this. I think its valuable information for those in the bargain community to know. When it comes to chasing value, sometimes paying more initially can save you in the long run, and had this worked out you might have been singing costco's praise.

    As it is, its just another reason to avoid them. It will be interesting to see how Kaufland changes the landscape when they arrive in the next few years

    • +6

      Thank you, I am glad you found it useful as that is the purpose of my post. I did initially make the mistake of injecting my personal disappointment into the post and I have tried to edit that out as much as possible so that the post is more factual and less emotional.

      • +11

        You're welcome. The main thing to remember here is that when posting something like this, there is no winning. Posting here, you're exposing yourself to judgement, and with forums like these there's always a legion of critics waiting to pass judgement and tell you all the ways you're wrong. If they were all that existed, I would say don't bother taking the time, but they aren't the only ones. They are just the vocal minority. There's a lot of lurkers in places like these, that don't stop to comment or vote. Maybe 100's. And those are the ones you have informed. They may not even know they know, but next time someone says 'buy your gear from costco for their awesome warranty' their minds will pull up your post here, and they'll say 'Well actually, maybe we'd better check that'

      • I am a member and i had this belief until your post, so thank you.

        I had a friend who told me about this lifetime warranty for his daughter's laptop after few years and it worked well for him. Well, i guess Costco has now amassed enough members to keep this going on any further.

      • I thank you and I’ve also heard of that myth also, which you have now debunked.

        I also fully agree with outlander and want you to know you helped another.

  • +3

    Ask for a membership refund for all the years since buying the TV (a you where told you had to keep it for the TV to stay in warranty) that's within the "Satisfaction Guarantee" I believe. That should cover you repair bill or go to a new one.

    • -1

      I'm up for doing that if it means whoever makes the request gets banned from Costco for life. Has happened in the US, I imagine it affects the banned customer more than Costco.

      • +5

        I'm up for doing that if it means whoever makes the request gets banned from Costco for life.

        why
        why would you even care

  • +1

    So have you tried calling Samsung they might help ?my father's big screen was showing marks on the screen out of warranty gave them a call informed them he knows his right about warranty on a tv .. they say 2 years but really it's 5 years when you buy a tv you deserve at least 5 years from it

    • OP Has had the TV for 7 years..

      Decent run for such crappy tech IMO

      • Perhaps you're right. Feels a bit short for the money, but I guess such is life.

  • you need Lionel Hutz as ur lawyer and take costco on

    hes got experience in similar cases!

    all u can eat…. unbelieveable

  • -5

    Why do people omit the vital information — how many years have you had your TV?
    Is it cathode-ray, plasma?

    • +7

      Why do people not read the post and miss out on vital information?
      :)

      • Because the post didn't even mentioned what OP did with Costco to try and get a fix/refund! Had to scroll down loads to read the relevant comment. Post is a good PSA but does not contain much of the actual story after TV breaking.

        • Because the post didn't even mentioned what OP…

          That wasn't what was asked. OzHunterNSW said why do people omit the vital information - how many years has OP had the TV? Is it CRT, plasma?

          That information was given in the 4th line of OP's post.

  • im not a tv expert but if monitors can last 10 years without issue, tv's should be similar?

    My parents just changed their main tv, not because it broken though, that has at least 12 years on it

    Before that they had a rear projection tv, the globe or whatever would constantly need changing

    • +1

      im not a tv expert but if monitors can last 10 years without issue, tv's should be similar?

      Plasma TVs are very power-hungry. There's a lot more strain on the PSU of a large plasma TV than a little LCD monitor with LED backlight.

      It's easier and cheaper to design and build a power supply that can power a small monitor and last a long time, compared to a big plasma TV. There are also other factors like duration of usage, ambient temperature, and power quality that will affect longevity.

  • So do people believe the crap of a Costco forever warranty ?

    Bit like those forever warranties by numerous fligh by night companies lol .

    • Common sense…there's no way a retailer can offer a forever warranty. Some manufacturers may, eg for certain graphics card etc, but there's no way a store would ever offer such a thing for all products they sell, that's just not feasible at all.

    • +2

      Only idiots and those trying to be unreasonable.

      "Hey the TV purchased I purchased in 1995 broke, I demand a $4000 refund based on your 'Satisfaction Guarantee'."

    • +2

      When I worked at David Jones they talked about their (old) lifetime satisfaction return policy as a point of pride. They'd tell new workers about old ladies returning used shoes after 30 years and such.
      Sounded dumb, but they were proud to have a very customer friendly policy and actually follow it up.

      So these kind of policies have been around in Australian retail, not to mention the various companies that offer lifetime warranties on their products. Though they are becoming less common in recent years for obvious reasons.
      But it's certainly not unreasonable to expect a company to honour their own stated policy, since it's their own choice to state it in the first place, and therefore up to them to be clear about what they actually intend and avoid deceptive conduct

      And importantly, those policies will influence customer decisions. What if OP could have bought the same TV at another store for less, but chose to pay more at Costco because of the promise of a forever warranty?

      Bit like those forever warranties by numerous fligh by night companies lol .

      Absolutely not like that. Those are nonsense because the companies are not expected to stick around long enough to follow up on whatever ridiculous promises they make. So they can do whatever they want to influence customer decisions in their favour, then run off with the money.
      Costco isn't going anywhere, so whatever they promise, they should be expected to follow up.

      Otherwise it'd be chaos. There'd be no reason for every retailer not to offer a lifetime refund for any reason no questions asked no matter the product or condition.

      • "so whatever they promise" - they didn't promise an unlimited warranty but. It's those that tries interpreting their 'satisfaction guarantee' to be "but but I'm not satisfied after 15 years of purchasing the product therefore you must refund me".

  • +1

    You've got 7 years of use of the TV, that's pretty good. Chalk that up as a win and just buy a current generation model which is more power efficient, may have a better picture quality, so win win for you.

    • It would be a different case if the TV had 2 years manufacturer's warranty and it died after 25 months. I would request a refund from Costco purely because if I spend a lot on a high-end TV, I expect it to last 5+ years and I am not satisfied with the TV.

      • +1

        Of course, that would be different. I think a reasonable expectation for the life span of a TV would be 5 years, unless its very very expensive and explicitly say it will last for longer, eg 10 years.
        7 years of use is pretty good for a TV. I'd be very happy with that.

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