Understanding Consumer Product Claims
When customers claim your product is defective, they may invoke several California consumer protection statutes. Understanding these laws—and their safe harbors—helps you respond effectively.
CLRA (Civil Code § 1750)
The Consumer Legal Remedies Act prohibits unfair methods of competition and deceptive practices. CLRA demands must give 30 days to cure. Failing to cure invites class actions and attorney fees.
Song-Beverly Consumer Warranty Act
California's "Lemon Law" applies to consumer goods with express warranties. Requires repair, replacement, or refund. Three-times damages for willful violations.
UCL (Bus. & Prof. Code § 17200)
The Unfair Competition Law has a broad reach—any unlawful, unfair, or fraudulent business practice can trigger liability. Remedies include restitution and injunction.
⚠️ CLRA 30-Day Cure Period is Critical
If you receive a CLRA demand letter, you have 30 days to offer an appropriate correction, repair, replacement, or refund. If you make a compliant cure offer and the consumer refuses, they cannot recover damages—only injunctive relief. Use this safe harbor strategically.
Evaluate the Complaint
Before responding, objectively assess whether the claim has merit.
| Issue | Higher Risk | Lower Risk |
|---|---|---|
| Defect evidence | Photos, expert report, recalls | Only verbal complaint |
| Product type | Consumer electronics, appliances | B2B, commercial use |
| Claim timing | Within warranty period | Years after purchase |
| Use pattern | Normal intended use | Misuse, modification, abuse |
| Prior complaints | Pattern of similar issues | Isolated incident |
Potential Defenses
CLRA Cure Offer
Strongest DefenseWithin 30 days of receiving a CLRA demand, offer an appropriate correction, repair, replacement, or other remedy. If consumer refuses a reasonable cure offer, they're limited to injunctive relief only—no damages.
Cure Offer Requirements
- Made within 30 days of receiving demand
- Offer must be in writing
- Must fully address the defect or complaint
- Include reasonable timeline to complete
Product Misuse or Modification
Complete DefenseIf the customer used the product in a way not intended or reasonably foreseeable, or modified it, you may not be liable for the resulting issues.
Evidence to Gather
- Product inspection showing modification
- Evidence of use outside specifications
- Warnings and instructions provided
- Industry standards for intended use
No Express Warranty or Warranty Expired
Strong for Song-BeverlySong-Beverly applies to goods with express warranties. If you sold "as-is" (permissible for used goods) or the warranty has expired, many claims fail.
Documentation Needed
- Copy of warranty terms and duration
- Proof of purchase date
- Any "as-is" disclaimers (used goods)
- Warranty registration records
Consumer Goods Exception
SituationalCLRA and Song-Beverly apply to "consumer goods" for personal/household use. B2B sales or commercial-use products may fall outside these statutes.
Analysis Points
- Was buyer a business or individual?
- Intended use: personal vs. commercial?
- Marketing: consumer vs. commercial channels?
- Invoice/contract designations
Calculate Exposure
| Statute | Potential Damages | Notes |
|---|---|---|
| CLRA | Actual damages + punitive | Cure offer eliminates damages |
| Song-Beverly | Refund/replacement + 3x (willful) | Three-times penalty for willful violations |
| UCL | Restitution only (no damages) | Injunctive relief available |
| Contract breach | Purchase price + consequentials | May be limited by contract |
| Attorney fees | Consumer prevailing party | CLRA & Song-Beverly both allow fees |
Response Strategy
Make CLRA Cure Offer
If you receive a CLRA demand, immediately prepare a cure offer within 30 days. Even if you dispute the claim, a cure offer protects against damages exposure.
Investigate the Product
Request return of the product for inspection. Document condition, look for misuse or modification, preserve evidence of actual defect (or lack thereof).
Review Similar Complaints
Check if other customers have reported similar issues. A pattern suggests a real defect; an isolated complaint may be user error or misuse.
Consider Business Resolution
Often, offering a replacement, refund, or store credit is cheaper than litigation—even if you believe you'd win. Factor in legal costs and reputation.
30-Day Response Checklist
- Calendar the 30-day CLRA deadline
- Request product return for inspection
- Review warranty terms and purchase date
- Check for pattern of similar complaints
- Prepare and send written cure offer
- Document all communications
Sample Responses
📄 CLRA Cure Offer Letter
Dear [Customer]:
Thank you for your letter dated [date] regarding your purchase of [product]. We take customer satisfaction seriously and appreciate you bringing your concerns to our attention.
Pursuant to California Civil Code § 1782(b), we hereby offer to resolve your concerns as follows:
[Choose appropriate option:]
• Full refund of your purchase price of $[amount] upon return of the product; OR
• Replacement with a new [product] at no additional cost; OR
• Repair of the identified issue at no charge within [X] business days.
To accept this offer, please [instructions for return/exchange/repair scheduling] within 30 days of this letter.
This offer is made pursuant to Civil Code § 1782(b) and is intended to address any claims you may have under the Consumer Legal Remedies Act. We believe this offer fully addresses your stated concerns.
Please contact us at [phone/email] to arrange resolution.
📄 Response Disputing Defect Claim
Dear [Customer/Attorney]:
I am responding to your demand letter dated [date] regarding [product].
We have reviewed your complaint and respectfully dispute your characterization of the product as "defective." Based on our records and the information you've provided:
1. The product was purchased on [date], which is [X months/years] past the [warranty period].
2. The issues you describe are consistent with [normal wear/misuse/modification], not a manufacturing defect.
3. [If applicable: Our inspection of the returned product shows evidence of improper use, specifically...]
Nevertheless, as a gesture of good faith and pursuant to Civil Code § 1782(b), we offer [describe limited accommodation—e.g., discount on replacement, partial credit, etc.]. This offer expires in 30 days.
If you reject this offer, please be advised that we are prepared to defend any claims and will seek recovery of our attorney fees if we prevail.
📄 Response to Song-Beverly (Lemon Law) Demand
Dear [Customer/Attorney]:
We received your demand letter dated [date] invoking the Song-Beverly Consumer Warranty Act regarding [product].
To evaluate your claim, we request the following within 14 days:
1. Proof of purchase (receipt, invoice, or credit card statement);
2. Service/repair history for this product;
3. Description of the specific defect and when it first manifested;
4. Return of the product for our inspection.
Song-Beverly requires that we be given a reasonable opportunity to repair. Please contact our service department at [phone/email] to schedule a repair evaluation.
Pending review of the above information and inspection, we reserve all defenses including but not limited to: warranty expiration, product misuse, unauthorized modification, and third-party caused damage.
We are committed to honoring our warranty obligations and resolving legitimate claims.