A Merchant Refuses to Honor a Guarantee: What to Do When a Business Won’t Stand Behind Its Product

You made a purchase with confidence because the product came with a guarantee—a promise of quality, satisfaction, or a refund if things didn’t work out. But now that the item is defective, broken, or not as advertised, the merchant is refusing to honor their word. Maybe they’re dodging your calls, blaming you for the problem, or pointing to fine print you never saw. You feel frustrated, deceived, and stuck with a faulty product you can’t return.

So what now?

Fortunately, consumer protection laws are on your side. If a merchant refuses to honor a written or advertised guarantee, you have options—and in many cases, you can recover your money or receive a replacement.

This guide walks you through how to handle a merchant who won’t honor a guarantee, from gathering documentation to escalating the issue and asserting your rights.

Step 1: Understand the Type of Guarantee You Have

Not all guarantees are created equal. Before taking action, identify exactly what kind of guarantee was offered:

Written Guarantee or Warranty

• Provided at purchase or included in packaging
• Details specific terms (e.g., “1-year replacement warranty”)
• Legally binding under most consumer protection laws

Satisfaction Guarantee

• Often advertised as “Money-back if not satisfied”
• Usually tied to a time window (e.g., 30-day return policy)
• May be more flexible, but still enforceable if advertised clearly

Implied Warranty

• Even if not stated, products often come with implied warranties under law
• For example, items must be fit for the purpose for which they’re sold
• Applies especially to electronics, appliances, and major purchases

Service Guarantees

• Promises made by contractors, repair technicians, or service providers (e.g., “Guaranteed to fix your problem or your money back”)

Clarify what was promised, whether it was in writing, and if any conditions (like time limits or proper usage) apply.

Step 2: Gather All Documentation

You’ll need a clear paper trail to prove your claim. Collect:

• The receipt or proof of purchase
• A copy or photo of the guarantee or warranty language
• Any ads, product descriptions, or website screenshots showing the guarantee
• Photos or videos of the defective product or issue
• Records of your communications with the merchant, including emails, texts, or call logs

If the guarantee was verbal, try to remember exactly what was said, who said it, and when—then document it in writing as best you can.

Step 3: Contact the Merchant—Clearly and Calmly

Sometimes, a simple, polite conversation is all it takes to get results. Reach out to the merchant and explain:

• What the issue is
• When you purchased the item and what guarantee applied
• That you’re requesting a refund, replacement, or repair based on that guarantee

Use specific language. For example:

“I purchased this item on March 3rd with a 60-day satisfaction guarantee. It stopped working after two weeks, and I’d like a replacement as advertised.”

Keep the conversation calm, courteous, and documented. If speaking by phone or in person, follow up with an email summarizing what was discussed.

Step 4: Escalate Within the Company

If a customer service rep or store clerk can’t (or won’t) help, escalate your issue to:

• A manager or supervisor
• The corporate customer service department
• The company’s owner or consumer affairs office

Be firm but respectful. Explain that you’re aware of your rights and are prepared to escalate further if necessary.

You can say:

“I’m disappointed that the guarantee is not being honored. I’ve reviewed the terms and believe I’m entitled to a refund. If we can’t resolve this promptly, I’ll need to explore other options.”

Step 5: File a Written Complaint or Demand Letter

If informal communication fails, write a formal complaint letter to the merchant. Include:

• A clear explanation of the problem
• Reference to the guarantee or warranty
• The outcome you’re requesting (refund, replacement, repair)
• A reasonable deadline (10–14 days)
• A statement that you may file complaints with consumer agencies or consider legal options

Send it via certified mail so you have proof of delivery.

Sometimes, this one step is enough to prompt a resolution—especially if the merchant realizes you’re serious and prepared to take action.

Step 6: File a Complaint with Consumer Protection Agencies

If the merchant still refuses to cooperate, you can file complaints with:

• Your state’s attorney general or consumer protection office
• The Better Business Bureau (BBB) at bbb.org
• The Federal Trade Commission (FTC) at reportfraud.ftc.gov
• Industry-specific regulatory boards (for auto repair, electronics, etc.)

These agencies can investigate, mediate, and in some cases, fine or sanction businesses for deceptive practices. Filing a complaint is free and may pressure the business to resolve the issue.

Step 7: Consider a Credit Card Dispute or Chargeback

If you purchased the item using a credit card and the merchant won’t resolve the issue, you may be able to initiate a chargeback through your credit card company.

To do this:

• Contact your card issuer and explain the situation
• Provide documentation of your purchase and your attempts to resolve the issue
• Ask to dispute the charge due to “failure to honor warranty” or “defective merchandise”

There’s usually a time limit (often 60–120 days) to file a chargeback, so don’t delay. If approved, the charge is reversed, and the merchant loses the payment.

Step 8: Take Legal Action if Necessary

If the value of the item is significant and the merchant still refuses to cooperate, you may consider:

• Small claims court: This is an option for recovering money from a merchant who broke a warranty or refused to honor a guarantee.
• Legal advice: Especially for higher-value goods (e.g., appliances, electronics, or furniture), a letter from an attorney may encourage a settlement.
• Class-action options: If the merchant has a pattern of refusing guarantees, they may be part of a larger investigation or lawsuit.

Keep in mind that legal action should be a last resort—but it’s a valid path if you’ve exhausted all other options and still haven’t been made whole.

Final Thoughts

When a merchant refuses to honor a guarantee, it feels like a betrayal. You made a purchase in good faith—and now the product doesn’t work, and the company won’t stand behind it. But you have more power than you think.

By understanding your rights, staying organized, and using the right channels—whether that’s a demand letter, a regulatory agency, or a credit card dispute—you can hold businesses accountable and get the outcome you deserve.

Don’t let a broken promise go unchecked. Because when companies offer a guarantee, they’re not just selling a product—they’re making a commitment.

Don’t Be Afraid To Get Help

If you’re facing legal questions, safety concerns, or emotional turmoil due to any of the situations described above—especially domestic abuse—don’t try to handle it alone. Professional guidance can make all the difference in ensuring your rights are protected and your next steps are clear. Whether you need legal advice, help with documentation, or assistance navigating local resources, speaking to an expert can bring peace of mind. Click here to get connected with professional support tailored to your situation.