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“Don’t waste your money on an extended warranty”: CHOICE

December 7, 2020 Lifestyle News No Comments Email Email

A CHOICE survey* has found nearly one in five (18%) Australians are still buying extended warranties even when they offer nothing more than your legal rights, leading the consumer advocate to warn Australians in the lead up to Christmas and Boxing Day Sales.

 *a nationally representative sample of 1112 Australians conducted 7-30 September 2020

“Don’t waste your money on an extended warranty,” says Julia Steward, Consumer Rights Expert at CHOICE.

“Many extended warranties largely replicate or underplay your existing rights under the Australian Consumer Law. They’re a sales trick to squeeze more money out of you that ignore your  existing rights under the law. If someone tries to push an extended warranty on you, ask them ‘what does this give me beyond the Australian Consumer Law’,” says Steward.

Investigations in 2013 and 2015 by CHOICE found retailers heavily pushing extended warranties and often misleading people about their rights.

“Remember, your rights are often longer and more comprehensive than what you receive from a warranty. Your rights aren’t one-size-fits-all. Under the law, the products you buy should be eligible for refund, replacement or repair depending on the expected lifespan of the product. Not what the company says the warranty is,” says Steward.

CHOICE has also issued new advice on options if your Christmas or Boxing Day shopping doesn’t go to plan, including how to navigate credit card chargebacks.

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