Sale of extended warranties to be investigated by OFT
The Office of Fair Trading (OFT) is to investigate whether customers are getting value for money from extended warranties sold with electrical goods.
Around a quarter of all goods are sold with an extended warranty and the regulator has received complaints that they are often unfair and uncompetitive.
Usually sold at the point of purchase, many shoppers don't realise that such cover is optional and often feel pressurised in to buying unnecessary, over-priced warranties.
Customers have up to 30 days to decide on buying an extended warranty and there's a 45-day cooling-off period during which people can change their mind after purchase.
Claudia Berg of the OFT said: "We plan a short and focused market study to find out quickly what, if any, action is needed to make this market more competitive, to the benefit of consumers and the wider UK economy."
While many stores have come under attack for its warranty policy, there are exceptions.
John Lewis, for example, makes a point of offering a free five-year extended warranty on all televisions sold in store.
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Comments
I've heard that Germany has a normal 3-year free warranty period and that under EU law which, it is argued, governs the UK then normal UK warranty doesn't just die after 1 year but goods bought should be expected to last, without failure, for anything up to 5 years.
I have challenged traders following early failure of electronic or electrical equipment and have successfully recovered a major refund of cost for failures after the 1 year expiry.
I never, therefore, bother with purchasing extended warranty insurance any more, with the sole exception pehaps of Richer Sounds cash back, if not claimed version, if it is still available (?).
One thing that a lot of people dont seem to understand is that when you buy an extended warranty it runs from the date of purchase and your item will come with one, possibly two years free warranty any way.
Why dont the vendors offer their warranties to run from the end of the manufacturers then we wont be paying for years that are all ready covered.