It's still a Hardware Issue and it's the Makers Responsibility to either fix or replace.
Don't bother with Call Centres go directly to the Makers Service Agents and ask politely for a solution.
If they are unable to provide one go to the Phone's supplier and say you want a replacement either a different Model or Make & Model that actually works. Consumer Protection laws are there for a reason and while I worked as a Companies Service Agent I was always peeved off by the Poor Service that the Customers got till they hit me who fixed their problems. If there is a design Issue with the Phone the Service Agent is the only place to bother with not a Call Centre who most likely is controlled by the Phone Company who supplied the Phone not the Makers Service Agents/Division.
I've been responsible for several Model Recalls for things a lot more expensive than a $100.00 to manufacture handsets. The devices that I used to work with where high end cars and there was never an issue with a Model Recall over a Safety/Saleability issue. One report that I wrote for a Coroner ever resulted in Federal Laws changes as no make or model car meet existing Local Laws here. A little thing like the Bonnet being narrower than the Front Windscreen, so in a heavy front end collision the bonnet had the ability to enter the cockpit through the glass killing people. Just look at any car they mostly all still suffer for this issue but their way around it is to reclassify the Front Screen as a Structial Member which in most cases will deflect the Bonnet over the roof. While that is true its not always what happens.
If you still get no satisfaction, then you get the Legal people Involved and start with the Consumer Protection Agencies in your area, but realistically all you want is another handset that works.
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