Dunno what year this car is, but here is what the dealer will likely do for you: they will get used car AIO Mr Leather Bumper Repair Dude to repaint (yes paint) the leather for you. Out of pocket it's like a $75 repair - so I'm sure this is the way they will go. It will likely look good if dude is slick - it's just not a very durable repair for a driver's seat.
If the car is several years old - you will get NADA. No way they are replacing the leather seat cover for you - unless the car is close to brand new.
But, people here seem to LOVE Griots and their wonderful customer service and warranty. So, if you are convinced their product is responsible for this - maybe you should reach out to Griots for a new seat cover - since my understanding is it was fine before their product touched it. This would not be a defect in the seat leather coating (auto manufacturers warranty) - but a defective product from Griots that caused damage. Not quite sure why you expect Audi to fix this if it was fine before the Griots product touched it?
In the real world - I'm going to ask you - when was the last time you cleaned this seat & what year is the car? Are you the original owner? Because - that to me looks like the urethane leather coating may have been compromised in that area from sitting on a wallet in your back pocket. If youre not the original owner - the seat may have already been re-colored. If so, wear like this is normal.
Also, if you buy a car with leather seats that are close to white - you gotta expect stuff like this to happen over time. It's going to be almost impossible to keep a white leather drivers seat close to perfect on anything but a Sunday driver. I would just leave it how it is unless you are willing to replace the factory seat cover. Because any leather "repair" on a high traffic area like that will look like crap in a year.
Also, I can pretty much assure you no towel was the direct cause of this; regardless of what type of towel it is. These seat covers should be able to withstand several years of dry cotton, denim, & synthetic fabric abrasion before the coating fails. You can scrub most factory leather seats with a softer nylon brush and it should be fine. No towel is more abrasive than a nylon/plastic bristled brush. Like, the owners manual doesn't say you can't sit on the seats with clothes made out of certain fabrics. And, when you are using a cleaner - the towel is wet, further decreasing the friction. Unless, of course, there is something in your cleaning product that can soften or weaken the leather coating.
