US consumers yesterday filed two class action lawsuits against
Compaq Computer Corporation alleging the company systematically
defrauds consumers through its express warranty procedures and
knowingly denies consumers implied warranty rights.
The suits affect owners of Compaq iPaq Pocket PC handhelds, iPac
computers and Presario computers. It alleges that Compaq illegally
requires consumers to sign release forms anytime a unit is refunded
or replaced under Compaq's one-year express warranty. The release
forms require customers to swear they will not disclose the problem
or remedy or risk forfeiting their property and open themselves up
to a potential lawsuit from Compaq. Nowhere in the Compaq express
warranty is the signing of the release mentioned or required.
The required, allegedly illegal, release reads:
"The parties hereto further agree that the
terms and conditions created by this Limited Release shall remain
confidential. If the releasing parties breach or cause a breach of
this Limited Release, it is hereby agreed and understood that
Compaq will be entitled to liquidated damages, including not
limited to a return of the new Compaq Presario..."
“Compaq is not standing behind their products and is attempting
to bully its customers into keeping their mouths shut about the
problems they are having,'' said Patrick Woodson, a spokesman for
those bringing the case.
The first consumer lawsuit seeks to waive all of the signed
releases, force Compaq to abandon its practice and to re-establish
all of the proper consumer remedies for purchasing defective
equipment.
“In the course of researching this case, we heard from many
dissatisfied customers who are fed up with Compaq's tactics. In one
case, a computer owner had to fight with Compaq for more than six
months before he could get a product that he could even use and
then only if he signed a release requiring him not to discuss his
situation," Woodson said.
Another lawsuit alleges that Compaq illegally excludes all
implied warranty rights in violation of federal law. US law allows
companies to limit, but not exclude implied warranty rights for
products. Compaq's own warranty violates this law by saying “Compaq
makes no other warranties express or implied, including any implied
warranties of merchantability and fitness for a particular purpose"
(iPac handheld warranty).
“These cases are about forcing Compaq to stop short-changing
customers who are getting stuck with defective products,” Woodson
added. “These are deceptive practices, they are wrong and they need
to stop.”
