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Tel: 1300 30 40 54
consumer@demirs.wa.gov.au
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Our TV screens, in-boxes and devices have been overflowing with End of Financial Year (EOFY) sales pitches – and you might be one of the thousands of people who snapped up a bargain-priced home appliance or some new furniture.
But did you also agree to buy an ‘extended warranty’ on your purchase?
Extended warranties are often sold to consumers by retailers as an added ‘peace of mind’ to cover your purchase after the manufacturer’s warranty expires.
If you're offered an extended warranty by a retailer, it’s important to know your purchase is already protected by Australian Consumer Law (ACL), which entitles you to have a faulty product repaired, replaced or even refunded, after a ‘reasonable’ amount of time, regardless of any extended warranty, and even if the manufacturer’s warranty has expired.
Effectively, an extended warranty could mean you’re paying for insurance you're already getting.
Over the last 12 months, Consumer Protection has received 528 enquiries and 159 complaints about extended warranties. While most have been about motor vehicle warranties, many people have also complained about extended warranties on televisions, computers, fridges, washing machines, furniture, and even on an electric shaver.
Some consumers told us they couldn’t reach a satisfactory resolution after a fault developed, or they discovered their product’s problem wasn’t covered under their extended warranty policy.
Consumer advocacy group CHOICE has previously reported that 91 per cent of major electrical stores visited by a mystery shopper were trying to sell extended warranties that offered no more for customers than their rights under the ACL.
So, before you sign up and pay up for an extended warranty, understand what you're buying. Ask the salesperson to explain the actual benefits beyond your automatic, and free, ACL rights to a refund, product replacement, or repair.
Ask if call-out fees are extra under the extended warranty. Are labour and installation costs extra? Are you limited to the repairer you can use if something goes wrong with your item? Compare the cost of the warranty against the cost of your item. Remember – you already have rights under Australia’s consumer laws, whether or not you buy an extended warranty.
We understand an extended warranty might offer you extra peace of mind. But it might not always deliver the coverage and protection you’re expecting. And if you feel you're being pressured to purchase an extended warranty, you can contact Consumer Protection on 1300 30 40 54 to report the incident.
Our website also has helpful advice at www.consumerprotection.wa.gov.au or email us at consumer@demirs.wa.gov.au
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