I can't say this is always the case, but I'll share my personal experience.
last year I bought some tires from onlinetires.com for my Infiniti. Yes, the service was slow, yet that wasn't the biggest problem.
It turned out the tires were factory blemishes. I was unable to get two of them balanced correctly (I do a lot of high speed highway driving). Finally I had them road-force balanced. It took 4 ounces to balance one of them and 3.25 on the other!
Onlinetires.com was willing to let me ship them back and at their discretion they would have their tire service shop diagnose if the problem was in the tires. They would know within 4 weeks. If the tires were found by them to be faulty they would send replacements.
Long story short, I threw the tires away and bought from the local tire store.
I have never had a problem with tirerack. Like someone else said, you get what you pay for...
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