- SquareTrade
SquareTrade is a warranty provider for consumer electronics and appliances headquartered in the San Francisco’s financial district. The company’s underwriter is
AmTrust (AFSI) Origins and Early History
Founded in 1999 by Steve Abernethy, Ahmed Khaishgi, and Lalitha Vaidyanathan, SquareTrade began as the first online dispute resolution service to resolve e-commerce disputes. In February 2000, SquareTrade launched its service in partnership with
eBay and other online marketplaces to provide a neutral dispute resolution service that was accessible for both buyers and sellers. SquareTrade automated much of the dispute resolution process through an online direct negotiation tool. If the parties could not resolve the case directly with the use of this tool, parties could work with a professional mediator online to attempt reaching a satisfactory resolution.Also in 2000, SquareTrade launched a merchant verification service, the SquareTrade Seal, for online sellers to display their credibility to potential buyers. SquareTrade’s systems dynamically display the SquareTrade Seal of approval when sellers are in good standing. Many
eBay sellers use SquareTrade’s Seal on their eBay listings.SquareTrade was named a Technology Pioneer in 2001 and 2002 by the World Economic Forum.
SquareTrade discontinued its dispute resolution services in early 2008.
Current Company Services
In 2004, SquareTrade began a new approach of providing consumers extended warranties for electronics, appliances, computers, and other devices. The company provides a direct to consumer warranty service as an alternative to the extended warranties purchased in retail stores and directly from manufacturers. Warranties are also available for used items, provided they are acquired within 30 days of the purchase of an item. The company’s warranties are also offered to consumers via online retailers.
Notes and Controversy
In February 2008, SquareTrade released information regarding notably high failure rates for Xbox 360. The company found that the failure rate for the game system was 16.4% (almost 60% of the consoles that failed were due to general hardware failure, or the "Red Ring of Death"). Microsoft spokesman Joe DiMiero responded by questioning the methodology, but did not release any data to refute SquareTrade's report.
(1) http://www.nytimes.com/2001/06/13/technology/13MIHM.html?ex=1214539200&en=64d91fe55d64642b&ei=5070
(2) http://www.latimes.com/business/la-fi-warranties17dec17,1,7648303.story?coll=la-headlines-business&ctrack=5&cset=true
(3)
Xbox 360 technical problems
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