Additional Information for Amazon Home Warranty LLC

According to information released by the Arizona Attorney General's office, on Nov. 29, 2021, the State of Arizona and defendants Amazon Home Warranty, LLC a/k/a AHW; Yeyy Holdings Corp; Abady Group, LLC; 1 Stop Solution Group, LLC; Amazon Warranty Administrators of Arizona, LLC; Harry J. Bailey; Marc Abady; and Leo Kassin, without admission of guilt, wrongdoing, violation or sanction,  entered into a consent judgment pending court approval, stating that defendants agreed to pay $105,000 in consumer restitution; pay $35,000 in civil penalties; pay $15,000 for the cost of a claims administrator to help administer payment of restitution; and within 60 days take steps to remove or request third-party platforms remove or correct misleading business information and fake or unverified customer reviews. Earlier this year, the state of Arizona filed a lawsuit against AHW and its affiliated companies alleging that AHW and its officers – Harry Bailey, Marc Abady, and Leo Kassin – violated the Arizona Consumer Fraud Act,  posted bogus five-star reviews, falsely represented that the company had been in business for nearly 10 years, and misled consumers about the identity of the company’s officers.

For more information regarding this government action:

Arizona Attorney General Press Release dated Monday, November 29, 2021

https://www.azag.gov/press-release/attorney-general-mark-brnovich-obtains-150000-amazon-home-warranty-fake-reviews-case

The Judicial Branch of Arizona Maricopa County Civil Court Case Information - Case History - Case Number: CV2021-007632

http://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseInfo.asp?caseNumber=CV2021-007632

On Aug. 28, 2023, the State of New Hampshire Insurance Department (NHID) ordered Amazon Home Warranty, LLC d/b/a AHW to cease and desist engaging in consumer guaranty contract business in New Hampshire, except for servicing any in force contracts, as it is causing or is reasonably expected to cause significant, imminent, and irreparable injuries to New Hampshire citizens and policy holders, according to Docket No.: INS No. 23-023-EP. In support of this order, the NHID stated findings of facts including:

- AHW is a Delaware limited liability company with principal places of business in New Jersey and New York.

- AHW offers for sale consumer guaranty contracts, namely home warranties.

- AHW is not registered to sell such products in New Hampshire.

- Nevertheless, AHW has sold consumer guaranty contracts to at least three individuals residing in New Hampshire.

- In June 2023, the NHID's Consumer Division received a complaint from a NH consumer who had purchased a contract from AHW.

- Though the NH consumer was directed by AHW to retain a technician to examine a malfunctioning AC unit because AHW had not personnel able to do so, AHW later refused to reimburse the consumer for that expense.

- The NHID is aware of numerous complaints from other jurisdictions regarding AHW's conduct, and that AHW has been the subject of legal, regulatory and/or administrative actions in other jurisdictions.

- Because AHW has not complied with New Hampshire's registration requirement, AHW has violated and will continue to violate NH RSA 415-C:3.

- Because AHW failed to reimburse the NH consumer for the expense of retaining a technician to examine a malfunctioning AC unit, AHW has violated NH RSA 415-C:7.

For more information concerning this government action, you may wish to contact the New Hampshire Insurance Department at https://www.nh.gov/insurance/ 21 South Fruit Street, Suite 14 Concord, NH 03301, email [email protected], phone Consumer Hotline: (800) 852-3416.

On Sept. 22, 2023,  defendants Amazon Home Warranty, LLC (AHW) and Amazon Home Warranty Administrators, LLC (AWA), without admitting to any wrongdoing, entered into a consent judgment with the state Ohio to settle and resolve a civil lawsuit filed by the Ohio Attorney General’s Office in Franklin County Common Pleas Court in Columbus, Ohio, alleging the defendants committed unfair or deceptive acts or practices concerning the marketing, sale and administration of home services contracts. The defendants agreed to pay $55,000.00 in consumer refunds and were assessed a $100,000.00 civil penalty, which is suspended so long as the defendants comply with agreed upon orders and terms.

According to the consent judgement:

• defendants misrepresent to consumers the coverage and benefits of AHW plan
  
• defendants misrepresent that their product saves consumer time and hassle of finding someone to take care of home repairs.
  
  
• defendants’ AHW plans include significant exclusions to home systems and appliances – often excluding items that consumers would typically assume would be covered
  
  

The consent judgement also states that:

• the defendants shall offer all Ohio consumers with an active contract the opportunity to cancel with no penalty and receive a pro rata refund, and that consumers shall have 30 days from the date of notice to accept the offer

   

• as of the date of entry of the consent judgment, defendants shall not sell their service contracts to Ohio residents or to non-Ohio residents for coverage on any Ohio Property

   

• Within 60 days of the entry of the consent judgment, defendants shall clearly and conspicuously disclose on all advertising that they do not sell service contracts to Ohio residents or to non-Ohio residents for coverage on an Ohio property
  
  
• the defendants shall continue to service contracts as of the date of the consent judgment, until the term of the active contract has expired
  
  
• consumers may elect to continue to renew contracts active at the time of the consent judgement, and the defendants shall continue to service those contracts, so long as consumers elect to continue coverage
  
  
• the defendants shall timely and in good faith respond to and negotiate a reasonable resolution to any consumer complaints filed with the Ohio Attorney General or the Ohio Better Business Bureau.
  
  

The consent judgment further state that:

• Consumers complain that sometimes it takes days or weeks to have a service technician dispatched to provide a diagnosis and/or repair
  
  
• Consumers complain that they spent hours of time and effort trying to find service technicians to service or repair their home issues when AHW wouldn’t or couldn’t or failed to address an issue timely
  
  
• Consumers complain that when AHW instructs consumers to find their own service technicians, AHW will deny payment or reimbursement for the technician.
  
  
• Consumers complain that when AHW failed to find a service technician timely, and they had to do so on their own, AHW denies payment or reimbursement for the technician.
  
  
• Consumers complain that even when a certain item is “covered” under an AHW plan, defendants deny coverage under the language in the fine print.
  
  
• Consumers complain that in some cases when a covered item fails and/or is irreparable and/or is expensive, defendants refused to replace the system and/or appliance and instead offer an inadequate cash payment
  
  
• Consumers complain that when defendants agree to provide a coverage payment or reimbursement, the defendants fail to provide payment in a timely manner.
  
  
• Consumers complain that defendants deny coverage because of the age of appliances or consider age to be a pre-existing condition making repairs or replacements ineligible for coverage
  
  
• Consumers complain that defendants deny coverage and consider normal wear and tear a pre-existing condition that cannot be covered
  
  
• Consumers complain that defendants deny coverage for “improper maintenance” and other subjective reasons
  
  
• Consumers complaint that defendants fail to comply with the cancellation terms in the AHW plan and provide refunds when consumers cancel the plan because of dissatisfaction with coverage
  
  

For more details you may wish to contact:

- The Ohio Attorney General's Office Help Center

Toll-free: 800-282-0515 or Local: 614-466-4986, 30 E. Broad St., 14th Floor, Columbus, OH 43215, https://www.ohioprotects.org/

- The Franklin County Clerk of Courts office,

373 South High Street, Columbus, OH 43215, phone 614-525-3600, http://www.franklincountyohio.gov/clerk/cio.cfm or online http://fcdcfcjs.co.franklin.oh.us/CaseInformationOnline/

BBB files indicate this business has a pattern of complaints concerning:

1. Misrepresentation-many customers report that they purchased the home warranty based on the fact that the salesperson stated Amazon Home Warranty is part of Amazon.com.

2. Poor Customer Service-Customers report that customer service representatives are not able to be reached by phone or email.  Several numbers supplied with warranty information are no longer in service.  Website is not able to be utilized to file complaints.
Customers also report that they are told there are not techs in their area.  They are told to find their own tech for repairs, only to find their claims denied for reimbursement.

3. Reimbursement- Customers report they are being offered far below market value for repairs they have paid for and/or appliance replacement.

4. Denial of claims-Customers report claims are being denied, even though under their contract they should be covered.

5. Amazon Home Warranty has stopped replying to BBB complaints.

BBB informed the company of these issues in writing on 1-10-23, 1-20-23, 4-19-23 and 7-1-24.  The business has not responded.  

On 9-27-23 BBB became aware that Amazon Home Warranty, LLC's website is no longer active.

BBB will continue to monitor activity and update the BBB Business Profile as needed.

Please be advised:

BBB has been unable to confirm the authenticity of numerous reviews submitted for this business.  Because BBB is unable to establish a reasonable degree of confidence about the validity of these reviews, BBB has removed reviews that may have been affected by this practice and BBB is in the process of validating more.  BBB will continue to update this file as more information is available through the file review.