I can perhaps offer an extra insight on this situation as I used to run the Babies R Us department in our local store and was the pushchair repair person. I left 10 years ago though so this may be well out of date.
Toys R Us are entitled to try and get the pushchair repaired first. If it is unrepairable and it is a fault with the pushchair then they will offer a replacement or refund. If the fault is caused by incorrect use then the customer may be asked to pay for a repair, at the store's discretion (we very rarely did as most repairs cost pennies). They should offer you a loan buggy of similar value to use in the meantime. Often loan buggies would be returned in appalling states by customers, and we would have to give them out to the next customer like this which caused no end of problems, understandably.
It is completely correct that your complaint is with TRU, not Silver Cross. However, Silver Cross (and all other pushcahir manufacturers) also give TRU conditions for returns. One of those is that pushchairs over a certain age must be sent back for repair before a refund is considered. If they don't do this, the manufacturer basically washes their hands of it and won't reimburse the store a penny.
TRU will give a discretionary refund if the manager agrees, and thus incur a loss, and they did this several times when I was there for individual reasons, including for bereaved parents.
The manufacturers give this type of policy because of the high volume of pushchairs that are returned with faults due to misuse. During my time at TRU I saw many pushchairs returned. I can honestly say that over half of the problems were due to user error. (Please note, I am not saying this is the case here. Using the foot rest correctly is of course not a user error). All these things cause pushchairs to break:
-folding with the back rest in the incorrect position
-letting the wheels get clogged up with sand, dirt etc.
-hanging shopping bags on the handles (I am terribly guilty of this one!)
-bumping the pushchair up and down stairs
-using a buggy board (not sure if this is still the case as TRU sell them now and they didn't when I was there for the reason that they could damage the pushchairs. So newer designs may be better but I still won't use one!)
And more. There are many clues which indicate what has happened - for example a Chicco buggy folded with the seat in the wrong position will have scratches down the back. Pushchairs that have repeatedly carried heavy shopping will have uneaven wear on the wheels.
It's often simple things which are problems. One lady laid into me and told me that 'I work for the papers sweetheart, so you better do as I askand refund me'. Her problem? She was trying to close the pushchair without unlocking it first. I still remember the way she spoke to me over ten years later.
All of these common things are so easy for parents to do, I'm guilty of at least two. But the problem is the manufacturers are not responsible for errors caused by misuse. And that is the reason for the policy.
If the problem is a genuine manufacturer's error (and they do happen! I'm certainly not saying all problems are caused by misuse), then it will be repaired to a high standard - I have visited several of the repair workshops. If it is unrepairable then the manufacturer will tell TRU to go ahead with a refund.
Sorry to waffle. TRU were not a perfect company to work for and I'm very glad I left. But I can understand the reason for the policy, and at the time I worked there, Mothercare had the same. Emotions are always high when dealing with pushchairs as parents naturally want their children to be safe.
I hope you manage to get your pushchair sorted out quickly. I hope I haven't come across as saying the customer is always wrong. Just wanted to explain why this policy is in place.
