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December 20, 2018

With sales now on, and some of us buying tech equipment, it is perhaps timely to remind ourselves of the Consumer Guarantees Act and the fact that we really do not need to buy extended warranties. Here is some advice from “Consumer”.

“Consumer” has labelled extended warranties as worthless in most cases, given customers are being sold rights they already enjoy under the Consumer Guarantees Act.

There can be reasons to buy an extended warranty. The CGA doesn't apply to business purchases, and some extended warranties will give you a replacement while an item is under repair, for example.

But a retailer can only sell an extended warranty if they provide a customer with a summary of their rights under the CGA first, plus a summary of how the retailer's extended warranty compares with the CGA.

They are also obliged under the Fair Trading Act to inform a customer - verbally and in writing - that they can cancel an extended warranty within five working days if they change their mind.

The CGA says...

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