Simon Corbell is warning that extended warranties are mostly rubbish:
“Fair trading agencies across Australia have raised serious questions about the value of extended warranties, and whether they offer any greater protection than that already provided by the Australian Consumer Law (ACL).
Most consumers are offered an extended warranty, particularly when purchasing electrical equipment or whitegoods and for a fee this warranty can be extended beyond that provided by the manufacturer.
Mr Corbell said that in almost all cases consumers were already protected by consumer guarantees or ‘statutory warranties’ under Australian Consumer Law.
“Office of Regulatory Services inspectors will be surveying extended warranties in the market place in the coming months and assessing whether they measure up to the ACL and any claims made by retailers,” he said.
“In the meantime, consumers considering any extended warranties should ask what they offer above and beyond their existing rights, and decide if they are worth the extra money.”