Minister warns do not be duped by extended warranties

Consumer Affairs Minister Judith Tizard is calling on retailers to be honest about the real value of extended warranties and for consumers to understand that they are frequently a waste of money.

"I have received a stream of complaints from consumers who are concerned about the true value of extended warranties," says Judith Tizard.

"I have sought advice, and it is clear that often when you buy goods for personal use you don’t actually need an extended warranty. You are already covered by the Consumer Guarantees Act, so why pay more for rights you already have?"

When you buy a new television, fridge, washing machine or iPod, you’re more than likely to be confronted by an eager sales person offering to sell you an extended warranty.

"Ask yourself, and the salesperson; what does this warranty offer me above and beyond the protection of the Consumer Guarantees Act — if the sales person gives you a puzzled look, the answer may well be 'nothing'," says Judith Tizard.

If you do decide to purchase an extended warranty get a copy of the warranty and read it - see for yourself whether it offers you more protections than the Consumer Guarantees Act. For example, does it cover wear and tear, or faults you cause through misuse as these things are not covered by the Act.

All consumer goods sold in New Zealand are covered by the Consumer Guarantees Act. The Act says that all goods must be of acceptable quality (and hence last for a reasonable time), be fit for a particular purpose, match the description, match any samples and have spare parts and repair facilities available.

More information on the Consumer Guarantees Act can be found at www.consumeraffairs.govt.nz/consumerinfo/ or in the Ministry's publication Your Consumer Rights (Goods) – A Guide to the Consumer Guarantees Act which is available from your local Citizens' Advice Bureaux or by calling 04 474 2750.