Below is my contribution to a recent issue of tED Magazine, the official publication of the NAED. Reprinted with permission.
The National Lighting Bureau’s (NLB) new Trusted Warranty Evaluation Program will offer electrical distributors assurance that lighting products they select are supported by warranties independently verified as worthy of trust.
Launched in 2020, the program audits warranties from manufacturer applicants in a points-based system. Qualifying warranties may carry the Trusted Warranty label, signifying the warranty satisfies the program’s criteria covering accessibility, internal support, clarity, relation of terms to reliability testing, warranty insurance based on length of warranty compared to years in business, and responsiveness to warranty claims.
For distributors, this provides confidence that a given warranty satisfies the large majority of a list of published criteria. For manufacturers, it offers a way to demonstrate—via trusted third-party verification from a nonprofit organization—that they stand by their channel partners by taking care of their warranty issues.
This is important for the industry as a whole, as it provides a means to separate manufacturers with strong warranties from bad actors; it also provides a distinguishing mechanism for new players to gain trust and credibility.
“When warranty issues occur, the electrical distributor is usually caught in the middle and many times has to absorb the cost of the warranty, especially for some strategic customers,” said Randy Reid, Executive Director, National Lighting Bureau (www.NLB.org). “The Trusted Warranty Evaluation Program is meant to give the electrical distributor peace of mind that the manufacturer will take care of their warranty issues.”
The NLB intended to launch the program in March 2020 but delayed it due to the COVID-19 pandemic. Reid said after several beta evaluations in late 2020, dozens were scheduled for December 2020 and early 2021. Lighting product and component manufacturers who sell in the United States and Canada are eligible to participate.
Out of a total possible maximum score of 10 points in the points-based evaluation system, a minimum of eight must be gained. The evaluation covers:
Formal warranty. The manufacturer has a documented warranty that is readily accessible on its website and supports it with internal formal procedures and resources.
Warranty language. The warranty is clear, concise, and includes its start date. If it is prorated, this must be clearly expressed and marked as such.
Warranty insurance. Either the manufacturer must have been in business longer than the length of the warranty or provide a warranty insurance policy to ensure it will cover any warranty obligations.
Technical evaluation. The program auditor will spot check two randomly chosen SKUs for reliability testing, with credit given for each SKU for which reliability testing was completed, whether internal or external.
Claims review. The program auditor will randomly choose three claims from the past 12 months and evaluate the trail from when notification was made to when the claim completed. The auditor will then evaluate whether the manufacturer acted expeditiously based on the information it had.
Manufacturers that earn Trusted Warranty status qualify to display the Trusted Warranty Certificate and logo in its marketing materials. The Certificate and ability to display the logo lasts three years, and then the company must requalify.
Reid encouraged electrical distributors, contractors, lighting specifiers, and utilities to get to know the Trusted Warranty Evaluation Program and ultimately reward these manufacturers by doing business with them.
“Today, we hope that our channel partners will simply begin acknowledging the program,” Reid said. “In 2021, we hope to see soft language such as, ‘XYZ Distributor prefers lighting products recognized by the NLB’s Trusted Warranty Program.’ In 2022, we hope to see the language, ‘XYZ Distributor buys the majority of lighting products from companies recognized by the NLB’s Trusted Warranty Program.’ In 2023, we hope that distributors will actually specify that their lighting products must carry the seal of approval. Basically, a three-year rollout.”
Learn more about the NLB’s Trusted Warranty Evaluation Program at NLB.org/trusted-warranty-program.
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