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Topic 11 of 13

2. Selling your goods or services

2.6 Extended Warranties

Some suppliers or manufacturers offer extended warranties to lengthen the coverage of the basic manufacturer’s warranty. Usually, consumers are offered the chance to buy an extended warranty after, or at the time, they buy the goods.

Some suppliers or manufacturers also tell the consumer an extended warranty provides extra protection, which the consumer would not have unless they buy the extended warranty. This is not necessarily true.

Consumer guarantees provide rights that exist despite anything the supplier or manufacturer may say or do. Extended warranties are optional. Suppliers and manufacturers must not:

  • pressure consumers to buy an extended warranty,
  • tell a consumer that they must pay for an extended warranty when such a warranty provides rights that are equivalent to a consumer’s rights under a consumer guarantee.
When selling extended warranties, suppliers and manufacturers should explain to the consumer what an extended warranty would provide over and above the consumer’s rights under the consumer guarantees.

For more information about Consumer Guarantees refer to the publication, ‘Consumer guarantees’.

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