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Source: Fair Go -
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Reporter: Libby Middlebrook
No matter if you're shopping for a toaster or a fridge, these days you can buy an extended warranty on pretty much anything.
They're supposed to cover you for faults for a specified period after the manufacturer's warranty has expired.
However, in most cases, that's protection you've already got under the Consumer Guarantees Act.
But some retailers won't tell you that. At times, they'll even give you the wrong information.
On the day we went shopping with our hidden camera at four major appliance stores - we were given incorrect information by two sales people. We also experienced the hard sell of extended warranties. Every salesperson we spoke to recommended we buy one - at additional cost of around ten per cent of the product.
But Auckland retail store Magness Benrow says they're generally bad value for customers, when so few home appliances break down.
We also spoke to five consumers, who said making a claim on an extended warranty was not as straight forward as it sounded.
What do retailers say?
When asked the major retailers in our story to justify extended warranties, but only Noel Leeming responded in detail.
The company claimed extended warranties gave customers quicker resolution on claims, certainty about how long you're covered for, and at times, insurance for problems not covered by the Consumer Guarantees Act.
Harvey Norman and Noel Leeming said they were disappointed if staff gave incorrect information in that hidden filming, and they'd ensure further training.
If your appliance is faulty, what are your rights?
It's your right under the Consumer Guarantees Act to have the retailer, or manufacturer, fix a problem, especially if your appliance is fairly new. If they can't fix it, you have the option of a replacement or a refund. It's your choice.
The act says a product must last a reasonable amount of time - but that depends on the value of the appilance, and how heavily you've used it. Consumer's website has a really good guide on all of this. But you have to subscribe.
