Extended Warranties
Extended warranties are a relatively new sales opportunity for the retailers and have not been without their fair share of bad press. Both the OFT and the Competition Commission have investigated claims of unfair terms, mis-selling and excessive profiteering. So the question is, are they worth it?
Your basic warranty
Let’s first define what a warranty is and what it does. When you buy an electrical item you will often be given a retailer or manufacturer’s guarantee or warranty for a period of time, usually 12 months, and up to 5 years for more expensive products. It is a myth that certain electrical products automatically come with a warranty – there is no legal obligation for shops or suppliers to provide them (although once they have, they are legally binding) – it is simply to enhance consumer confidence in their product and promote sales. It also provides the manufacturer with valuable marketing information which is why you will need to register your product by filling in a card with your personal and purchase details in order to activate it.
Warranties are basically a commitment to repair or replace defective parts within a specified time frame – usually 12 months for small electrical items. When this time is up, consumers are commonly told by shops that their responsibility is at an end and there is nothing further they can do. This is often not the case. The important point about warranties is that they should never seek to replace or take precedence over your statutory rights under the Sale of Goods Act, and even after your warranty has run out, you will still be protected by these rights which can run for up to 6 years after purchase.
Your statutory rights
In the absence of any warranty and as we have pointed out several times, the retailer is automatically liable for any faults which develop within the first 6 months. After this time, you may have to prove that the any fault was not down to misuse or wear and tear, although factors such as price paid, model specification, the length of time you have had it (and the length of time it should reasonably last) etc will also be taken into account. Therefore if you buy something which should last around 7 years but has broken down after a year or even after 3 years, the supplier has a duty provide a satisfactory repair – or if this cannot be done, a replacement. If neither a repair or a replacement can be agreed on then the shop can give you vouchers towards the cost of an alternative replacement or a partial refund. Whatever happens, whenever it happens, and whatever remedy you choose, your first and only port of call should be the retailer.
Misinformation
The following statements are frequently made by retailers and are untrue:
- You can only return items if you have a valid, registered warranty
- No longer our responsibility, you’ll have to contact the manufacturer
- Your 12 month warranty has run out, nothing further we can do.
- We’ll have to send it off to the manufacturer, there will be a charge for repairs / parts / shipping etc.
Your extended warranty
An extended warranty becomes valid after the basic one 1 or 2 year manufacturer or retailer’s warranty has run out and will then run for a further 2 or 3 years. It is the same as the basic warranty but will often cover damage in event of accident or misuse also. Some even cover loss or theft. In this sense it is basically an insurance policy for which you will either pay a one-off premium or a monthly fee. But are they worth it?
Having read the above you would probably wonder why you should be paying for an insurance policy you effectively already have under the Sale of Goods. The only difference with extended warranties is that they provide additional cover for damage cause by misuse and possibly loss / theft. However, in general, the feeling is that for retailers are tending to ‘hide behind’ warranties and using them to mislead consumers about their statutory rights. Moreover, the unfair way in which they are sold has also been under the spotlight. What consumers need to understand is that for the retailers, the sale of extended warranties is often more lucrative than the sale itself. So this, combined with large commissions was making for aggressive sales tactics just before the item was due to be paid for. For this reason, regulations have now been introduced to safeguard consumers against intimidation and provide them with all the knowledge they need to make an informed decision.
New regulations for extended warranties
There is now a requirement on retailers to ensure the following:
- The price of the extended warranty is displayed alongside the electrical item instore or on press adverts.
- The provision of information regarding the cooling off period of 45 days, cancellation rights, whether you would be protected in the event the warranty provider goes out of business, and whether the policy terminates if you make a claim.
- The provision of information regarding consumers’ existing statutory rights
- The fact that extended warranties are also available as ‘stand alone’ products from alternative sources.
The above information must also be presented in plain English – not legal jargon.
Worth it?
So, should you opt for an extended warranty? All we can say is consider it in the context of your existing statutory rights and read the terms and conditions very carefully – for example, do they offer ‘new for old’ or just a repair? Under no circumstances be bullied into accepting one at the point of sale and parting with even more cash than you’d like. If you decide you do want an extended warranty – shop around from the dozens of available providers, and remember your 45 day cooling off period.
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I bought an Acer laptop 6 weeks ago from Comet and was told its up to the manufacturers to deal with it. Is this right?
John – no absolutely not, it’s Comet. The Contract of Sale is between the buyer and the seller – the seller being the retailer.
Hi, my 11 month old Nokia N95 developed a problem which I was initially told by the Voadafone store that it needed the software resetting. When it returned from the service center, they said there was water damage (the main water indicator is still white and OK) and the warranty was void and as we did not take out the insurance there was nothing they could do. I argued that to my knowledge the phone has never been in water as the indicator showed, they replied that moisture in the air, condensation, sweaty hands, steam from a kettle or from a shower (can’t imagine how the last two could happen)etc. could cause moisture to damage the phone. I argued that these phones cannot be fit for purpose under the sales of goods act 1979, they are mobile devices, and I would expect them to operate in a reasonable environment (I do look after all of my products.). The ultimate answer from them was “its got water in it, and it must of happened someway that you were unaware of, and therefore there’s nothing we can do”.
Is there anything I can do.
Thanks in anticipation, Gary
Gary, the law says that the supplier is automatically liable for any faults which develop within the first 6 months and you do not need to prove a thing. Beyond 6 months it is up to you to prove you haven’t been negligent. The warranty is irrelevant here, you would expect the product to be durable and last for reasonable time. I have heard of this water issue many times before and I believe it is a very common problem. I agree with your assessment of the situation and I would continue to challenge them. Perhaps do some research on whether the problem has occurred to others and go to them with your findings.
We recently purchased an extended 3yr warranty with our tumble dryer from comet. We are having problems even getting them to send the certificate for the extended warranty. Now reading the above it seems the extended warranty shouldnt kick in until the end of the years free warranty that comes as standard is this right? If so should I report them for trying to pull a fast one under the sale of goods act?
Foxy, even though EWs don’t take effect until the end of the manufacturer’s warranty, you still pay for them from day 1. You can get an EW must later on down the line, or cancel it altogether (you have a whopping 45 day cooling off – see if you can get the EW cheaper elsewhere, you can buy stand alone products)
I booked a hotel in Thailand through a travel company. When I arrived the hotel was going through a massive renovation. Should the travel agent informed me of the renovation during my booking? I feel they are in breach of the sale of goods act (section 14)they took away my right of choice not to stay at this hotel. I have spoken to them but they don’t want to know. I am in the stages of preparing my case for the small claims court.
Thanks in advance.
Bill, please see our section on the package travel regs at:
http://whatconsumer.co.uk/the-package-holiday-regulations/
and:
http://whatconsumer.co.uk/the-holiday-was-a-nightmare/
Hi i purchased an lcd tv from currysabout 14-15 months ago the warrenty was only for 12 months but now the screen is getting shodows running up either side of the screen so i rang currys they told me to get in touch with samsung who told me to get back in touch with currys and when i did they said they cant send someone out to fix it as it could be due to my own negligence so i would have to pay for a tv repair person to check it and then if it was there fault i would have to take it back to them to get repaired but would not get a replacement whilst this took place. i cant afford to be getting tv repair people out as i am a single father of two kids can you guide me with what to do?
thanks
Hi, there is a letter here that you can use to send to them – http://www.ledtvs.net/faulty-led-tv/
However, you need to know that they are within their rights to ask for an engineers report proving that the tv had an inherent fault and has not been misused.
Tony
Hi
I bought a tv from comet 1200 with extended warranty in may09 it developed a fault logged 13th jan 10, got plasma screen replaced, upon delivery i noticed considerable amount of damage to the front of the bezel ( lots of scratches and a chip). I have paper work from driver who checked and noted, clear tv no marks.
Can you pls help clarify what are my rights? I am only 7 months into a 5 year contract and its been hell dealing with comet. please please help. Thanks
by the way i rejected the tv whilst it was on the lorry, stating the damage
thanks once again
Perhaps someone can help me, for the company I work for we purchased a Hotpoint fridge and dishwasher in July last year. The power button the dishwasher has now broken and pushed further into the door. It doesn’t get any more heavy use than a domestic appliance, only once a day 5 days per week.
Under the 12 month guarantee we called Hotpoint to come and repair it, they have now been and won’t even look at it as they say that ‘any appliance used in commerical or non-domestic properties the guarantee will no longer apply and it says this in the operating manual. Obviously you only see this if you read right to the back and once the appliance is unpacked etc.
I’d like to know what rights we have to get it repaired under some sort of guarantee and if this commerical use line can be enforced?
Any comments are appreciated.
Hi Julie, I am afraid they can put practically anything they want in the guarantee. Also, you are not covered by consumer law as it was bought by a business. You can still make a claim under contract law, which is what consumer’s had to rely on before the 70s.
Hi , I purchased a Samsung american style fridge freezer which after 15 months stopped working. It has a two year warranty from Samsung who sent a repairman out who said a new compressor was needed but it would take up to 10 working days to arrive. Hence we will be without any food cooling nor freezing for at least 2 weeks from failure to repair. I called Samsung as we have lost over £50 of frozen food and don’t feel we should have to wait that long for repair or replacement. They say up to 28 days for repair and three repair attempts before any replacement considered is stated in their warranty. Should the manufacturer or retailer compensate for food loss or at least ensure a timely repair when something as vital as a fridge freezer breaks down? What constitutes a reasonable period to wait without a working fridge freezer?
Hi i was just reading your complaint about a samsung american fridge freezer. I purchased mine from comet two and a half years ago with an extended 5yr warranty. in febuary i was advised that my fridge freezer was a potential fire risk by samsung and had some kind of modification kit fitted since then i have had non stop problems with it, my fridge freezer broke down nearly 4wks ago. i have 3 young children so i can fully understand how inconvienent it is to have no fridge freezer. to cut a very long story short my fridge freezer still does not work and i see no sign of any resolution even though i purchased extended warranty. my advice to you google your product number and look at the common faults associated with these fridge freezers you wouldnt believe how many people which have exactly the same problem.
my [playstation has a cooling fan ,overheating problem. it is a well known inherant fault.it the second one i have had in 3 years . i feel sony are not being fair to its loyal customers.
Warrantie granting and fulfilment precondition.
Is the requirement of presenting the original packing in a guarantien case and when requesting the warrantie fulfilment by manufacturers and retail shops in the EU a legally permitted precondition under the Sales of Goods Act? This is printed in many Guarantie certificates or pamphlets and has been reason for refuse of granting the warrantied obligations for small items as well as for big refrigerators and freezers.
This would mean that one has to hire a ware house for their storage, and I think that this cannot be the spirit of the Sales of Goods Act.
Thanks for your guidence.
Heinz
Malta
We bought a Grundig Freesat HD Receiver on 27 November 2008 for £130 from John Lewis. We haven’t used it for approx 8 months because we have not had a television. We bought a new tv on Sunday and the Grundig receiver was only switching on intermittently and kept cutting out. It now isn’t switching on at all. We called John Lewis who want nothing to do with it (they were incredibly rude in fact!). I will call Grundig but I’m confused about what my rights are and feel like I need to be armed with the correct facts before I get fobbed off with the usual “well it’s older than twelve months” mantra.
Please help. Many thanks
Jaime Taylor
sent my laptop back to Comet on the 5th July 2010.
the laptop a bought is a Aspire 3738z march 2009 it develop a fault with the mains socket in the laptop, took to to Comet they sent it off then i got a letter from the repair company saying they need £200 to carry out the repair, i called them they said it customer damage i argued the point but they also said it i want it back it will be £50 to return it or it will be used as spares
can you advice asap they say i have 7 days to let them know what i want to do
Thanks
I have a washing machine that is 15 months old and developed a fault. Currys say speak to Hotpoint who say it is out of warranty. I wouldnt mind but it wasnt a cheap washing machine. I cant afford to get it fixed or buy a new one right now. Do I have a leg to stand on and if so who do I approach, Currys or Hotpoint?
i brought a playstation 3. 2 and a half years ago from argos it has broken down it is completely dead now what are my rights