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Warranty overhaul delayed
Pressure from retailers means Government won’t guarantee your rights this Christmas.
The Government has performed a u-turn (nothing new in that
) over its plans to overhaul the extended warranty market in time for Christmas.
The Department of Trade and Industry (DTI) bowed to pressure from retailers who wanted the legislation delayed and certain proposals removed. In July, the DTI said its plans for radical overhaul of the extended warranty market would be in place before the end of this year, following last December’s critical report from the Competition Commission.
This report determined that the extended warranty market for domestic electrical goods was often unfair to consumers.
But some retailers complained having to introduce these changes by Christmas was a disproportionate burden on them. They also claimed that some proposed changes, such as giving the price of the extended warranty similar prominence as the price of the equipment, would only confuse consumers. (Hmmm, would you be confused to see what you’re actually paying for?)
Consumer Minister Gerry Sutcliffe agreed to delay any changes until next year and to reconsider some of the proposals.
“We have no desire to place unnecessary burden on retailers,” said Mr Sutcliffe.
A National Consumers Council representative said the delay was disappointing and “not good news for consumers in the run up to Christmas when they need better protection”.
Which? (formally the Consumers’ Association) also criticised the DTI for delaying the changes and sad: “Retailers have been ripping off their customers through overpriced warranties for far too long already”.
www.dti.gov.uk
Do you think the DTI should have stuck to its original plans?
Why not E-Mail the DTI: E-Mail the DTI and voice your opinion. I did, this will not be considered a DoS attack.
The proposals
Retailers must:
Pressure from retailers means Government won’t guarantee your rights this Christmas.
The Government has performed a u-turn (nothing new in that
The Department of Trade and Industry (DTI) bowed to pressure from retailers who wanted the legislation delayed and certain proposals removed. In July, the DTI said its plans for radical overhaul of the extended warranty market would be in place before the end of this year, following last December’s critical report from the Competition Commission.
This report determined that the extended warranty market for domestic electrical goods was often unfair to consumers.
But some retailers complained having to introduce these changes by Christmas was a disproportionate burden on them. They also claimed that some proposed changes, such as giving the price of the extended warranty similar prominence as the price of the equipment, would only confuse consumers. (Hmmm, would you be confused to see what you’re actually paying for?)
Consumer Minister Gerry Sutcliffe agreed to delay any changes until next year and to reconsider some of the proposals.
“We have no desire to place unnecessary burden on retailers,” said Mr Sutcliffe.
A National Consumers Council representative said the delay was disappointing and “not good news for consumers in the run up to Christmas when they need better protection”.
Which? (formally the Consumers’ Association) also criticised the DTI for delaying the changes and sad: “Retailers have been ripping off their customers through overpriced warranties for far too long already”.
www.dti.gov.uk
Do you think the DTI should have stuck to its original plans?
Why not E-Mail the DTI: E-Mail the DTI and voice your opinion. I did, this will not be considered a DoS attack.
The proposals
Retailers must:
- Show the price of the warranty alongside electrical goods, in store and in printed advertising material
- Provide consumers with information about their statutory rights, cancellation rights and details of the warranty
- Give consumers 45 days to cancel their warranty, including issuing a written reminder of this right and the right to cancel at any time and receive a pro-rata refund
- Offer consumers who do not wish to purchase a warranty at point of sale the same terms for 30 days. Discounts tied to the purchase of extended warranty would also be available for 30 days
- Say if the warranty provides financial protection in the event of insolvency