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Daily Insurance Industry News
Friday 17th of August 2018
April 14, 2011

OFT investigates electrical goods’ extended warranties

by Gill Montia

Story link: OFT investigates electrical goods’ extended warranties

The Office of Fair Trading (OFT) has launched a short market study into extended warranties for domestic electrical goods such as televisions, washing machines and computers.

The study will focus on whether competition in the sector is sufficiently effective in a market worth well over £750 million.

The watchdog has already reviewed after-markets for domestic electrical goods and unearthed “credible concerns” over retailers’ advantage in being able to sell warranties at the same time as they sell electrical appliances.

There were also more general concerns that the warranties are not good value for money.

However, the OFT has decided against launching a market study into repairs of domestic electrical goods, due to a lack of evidence to support concerns that manufacturers may be restricting competition by limiting access to technical information and spare parts.

The watchdog aims to publish its market study during the summer and will be contacting key parties direct.

Other interested parties are invited to submit views by email.

 

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