Phone Warranty - Partial Vs Full Refund

Hi everyone,

Just wanting some advice on what is a reasonable refund to expect, for a phone that stopped working within the warranty period.
TL;DR - should I push for a full refund of the phone rather than the partial one they're offering, given that it cannot be repair within a reasonable timeframe or replaced with like-for-like.

23/07 Update in case anyone's still following:
Mobileciti offered a partial refund of $300. I contacted the ACCC to clarify what my rights are and they told me I can ask for a full refund. I asked for that to be put in writing (via email) so I could go back to Mobileciti with it. Unfortunately the email was quite generic (apart from mentioning the seller by name), but I went ahead and contacted Mobileciti with it anyway.
Their response was to cite me the ACCC website paragraph:

The business may take into account how much time has passed since you bought the product considering the following factors:
* type of product
* how a consumer is likely to use the product
* the length of time for which it is reasonable for the product to be used
* the amount of use it could reasonably be expected to tolerate before the failure becomes noticeable.

In return, I quoted the sentence directly before it:

Refunds should be the same amount you have already paid, provided in the same form as your original payment.

Mobileciti then rang me (21/07, around 5:45 pm) to touch base and try to persuade me further. They told me what the process for making a formal complaint was, basically reiterating what's on the ACCC website (not sure why they did this…), and mentioned it could eventually go to a small claims tribunal. They asked what amount of refund would be acceptable to me, so I said the full amount. It's been escalated to another manager. Currently waiting on the outcome of that. I think if their opinion is unchanged I'll double check with the QLD Office of Fair Trading and then go ahead and write a formal letter of complaint to kick-start the process, because this is starting to drag on.


The story:
I purchased a Xiaomi phone through an authorised seller (Mobileciti) at September 2020. Fast forward to June 2021 and the screen suddenly died - touch screen still worked but nothing could be seen. I think the warranty period is 24 months for Xiaomi phones sold through an official reseller.

Actions so far:
Since it had only been 9 months since purchase, I asked Mobileciti for it be repaired under warranty. They told me to contact the manufacturer, Xiaomi Australia. After MUCH run-around (long story), and now 1 month later, it was discovered that my particular model of phone isn't covered in the contract between Xiaomi and their contracted repair centre. I was redirected back to Mobileciti.

Mobileciti then told me to send them back the phone for assessment (I did, at my expense). They said they would repair the phone, but when I asked they couldn't say how long it would take since they are in the NSW lockdown. They offered me my pick of another phone from their store of equal value ($500) "as a courtesy", or a partial refund since I've already had the phone for 9 months. They can't replace it with the same model phone because they don't stock it anymore.

Question:
I read through some Australian Consumer Law documents and as I understand it, the phone has a "major" problem since it is completely unusable without a working screen. So the remedy options are: Repair, Replace, Refund. They've admitted they can't repair within a reasonable time frame, they cannot replace like-for-like since they no longer stock the phone, so refund is the only option.
Currently waiting for Mobileciti to get back to me on what their "partial refund" is, I think best-case scenario I get back 15/24 * $500 = $312.50 since there are 15 months remaining of the 24 months warranty.
I can kind of understand why they would only want to give me a partial refund, since 9 months of use for a phone is a decent amount.
However, am I entitled to a full refund here? Is it worth me pushing for it?
I've been fortunate enough to have never needed to claim a warranty before, so I really have no idea!

Would be thankful for any advice!

Related Stores

Mobileciti
Mobileciti

Comments

  • +11

    full refund. dodgy bastards.

  • -6

    Can't see how you're entitled to a full refund… You mentioned yourself that you've used it for 9 months.

    A few things you've jumped the gun on:

    1) You mentioned they cannot fix it in a reasonable timeframe but you also say get cannot provide an estimate yet due to lockdown. That's not unreasonable nor has a reasonable timeline been set. Repairs can take a few weeks and there is no stipulated timeframe as they have not fully diagnosed.

    2) They've offered you a credit for replacement at the original price. That's already quite good on their behalf.

  • +2

    Mobileciti then told me to send them back the phone for assessment (I did, at my expense). They said they would repair the phone, but when I asked they couldn't say how long it would take since they are in the NSW lockdown. They offered me my pick of another phone from their store of equal value ($500) "as a courtesy", or a partial refund since I've already had the phone for 9 months. They can't replace it with the same model phone because they don't stock it anymore.

    Yeah doesn't work like that. They either give you a repair, replacement or a FULL refund if the phone is still in warranty.

    Don't take anything less.

    • Hi, thanks for your input! I'm definitely leaning that way, just not looking forward to the hassle of it… 😅
      I'm wondering if "replacement" means an identical item, or just similar? As in, is offering a similar $500 phone sufficient to fulfill their obligations or is it really just store credit?

      • is offering a similar $500 phone sufficient to fulfill their obligations or is it really just store credit?

        I would assume its a store credit. But that also works if you want to buy something else from them.

        If its $550, you just pay the difference.

        • Yeah that's what I thought too, thanks for confirming.

  • +1

    I reckon,

    (1) Full refund (sounds like it could be a hassle and slow).
    or
    (2) Another phone from their store of equal value ($500).

    IMO, option 2 if that is the quickest way to get another phone and one that you accept.

    • Thanks for your thoughts! I agree option 2 would be the easiest and to be honest I'd probably be fine with it if they had a phone I liked at a good price. The problem is whole their prices are OK, they're definitely not as cheap as I see them going for regularly here on OzB. For example, the Samsung Galaxy A52 4G is $588 but seems to go on sale for just over $500 on OzB.

      • You want a warranty replacement and a bargain as well?

        • I wouldn't really call it a warranty replacement. It's basically store credit to the value of my phone since they can't replace it with it exactly the same model. Under Australian consumer law, that's not a valid "remedy" for a major fault.

  • I’d suggest contacting Fair Trading in your state or territory if you’re willing to pursue it in that direction, since Mobileciti is not really upholding their obligations under the Australian Consumer Law.

    • OK thanks I'll keep that in mind, but was trying to leave that as a last resort. To their credit Mobileciti have been fairly responsive to my emails, generally replying within a day, and I haven't really tried any negotiation with them yet. Was just trying to suss out if I have a leg to stand on first, so to speak 😅

      • I definitely think you have a leg to stand on, because Mobileciti would be hard pressed to argue that your $500 phone is of reasonable durability if it has suffered a major failure after nine months (and I think it meets a reasonable person’s definition of a major failure, since no one in their right mind would purchase a phone with a screen malfunction if they were told about it before purchase).

        The exception to all of this is if the screen malfunction was caused by misuse or abuse, but I think it’s safe to say this was not the case.

        Mobileciti then told me to send them back the phone for assessment (I did, at my expense).

        I think ACL stipulates that you’re entitled for a reimbursement of postage costs if the product has suffered a major failure, so I’d double check that if I were you.

        I wish you luck!

  • Either full refund or like for like replacement are both viable options.

    Personally like for like is ok as long as they can prove the phone they give you is better/on the same level.

    We had bike dealers do this all the time when they no longer had the model that was getting warrantied, the customer would love it because they'd get a current year frame for no cost.

  • +3

    Also full refund in cash. Don't accept store credit.

  • I've had an issue with a Poco X3 NFC with the battery problem when I bought from Banggood. They also offered me partial refund which I was not happy with but because I paid with PayPal, I told them that I'd start a dispute with PayPal if they don't give me the full refund as I was not at fault regarding the issue. They ended up giving me the full refund. Hope it helps :)

    • Thanks for sharing your experience. I had actually considered a PayPal dispute (I payed through PayPal too), but disputes need to be opened within 180 days (6 months) of purchase right?

  • -1

    "They told me to contact the manufacturer, Xiaomi Australia."
    Under ACL the retailer/seller is responsible for dealing with the manufacturer, NOT the customer.

    As you have had 9 months use out of it (not knowing what the initial cost was or what model Xiaomi it was) the $500 choice of a phone seems a reasonable offer. It sounds like the initial cost was over $500?

    Alternatively ask them directly (in writing) for what you want… a full refund.. and see what they say.
    If you want to pursue that settlement then your next step would be to lodge a complaint with dept of fair trading and if they have no success then take it to a tribunal.

    As you had 9 months use out of it I doubt a full refund would be granted.

  • The problem with ACL is that it's very good at setting out consumer guarantees on paper. When it comes to enforcement, the only viable option for an item of that value would be go through NSW Fair Trading.

  • Not being able to tell you how long a repair would take doesn't mean they can't repair it in a reasonable time period. Only if they told you they couldn't repair it in a reasonable time period or you gave it to them for repair and 4/6 weeks later, it was still not repaired would it mean that.

    In my opinion, they have offered you a reasonable option - to get another phone of the same value. As xywolap said, don't expect a bargain and warranty replacement at the same time. If you really want a refund, then give the phone to them and tell you that you want it repaired and if they can't repair it within a reasonable time, that you want a refund. But be prepared to get a repaired phone back.

    • Hi, thanks for sharing this. It's great to hear the opinion of someone "on the other side". I don't mind waiting up to 6 weeks to get my repaired phone back, however when asked directly "When can I expect to have my repaired phone back", they said "At this stage with the Sydney lockdown having an expected conclusion of at least another 4 weeks, we cannot advise of an ETA as we cannot guarantee when everything will be settled and return to normal." To me, this is the same as saying "We won't repair it", since the timeframe is indefinite and who knows how long Sydney lockdown will go for, with the way their case numbers are. Perhaps I should press them further on this?

      Regarding a warranty replacement - I agree offering a similar phone of the same value is reasonable, but I don't think it's technically a "remedy" under ACL. It has to be an identical item for it to count as a "replacement" right? A phone that is just similar is really just store credit. I'd rather not be restricted to choosing from Mobileciti's range of phones. If I can't get a full refund, I'd still opt for a partial refund (if it's reasonable) and accept the loss in $ so I can choose my own phone.

      Unfortunately Mobileciti never gave me any option other than "Please contact the manufacturer"…

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