When consumers purchase certain types of goods, such as white goods or electronic ones, during the sale the seller might offer the customer the possibility of paying an extra amount and purchasing an extended guarantee with the product.

This guarantee would provide an added protection in the form of free repair or replacement should the product break down. However, before paying extra money for this protection, customers should evaluate the real benefits of such a purchase.

The first thing to take into consideration is the cost of the extended guarantee. To determine whether or not this is worth paying for, consumers should consider the money they are spending when buying the product, and the cost of repairing or replacing it if something goes wrong.

Furthermore, consumers should shop around and check if other sellers offer commercial guarantees that are as beneficial as the extended guarantee, but at no extra charge. Goods are almost always covered by a commercial guarantee whose duration may vary from a few months to a number of years.

It is up to consumers to check what sellers are offering and, if the need arises, to negotiate a commercial guarantee that provides adequate after-sales protection at no added cost.

Furthermore, consumers need to be aware that regardless of the commercial guarantee offered by the seller, consumer law provides a legal protection that is valid for two years from the date the product purchased is delivered to consumers. This protection entitles consumers to claim a free remedy if the product purchased is defective or not in conformity with the contract of sale.

Remedies available to consumers are repair or replacement. If neither remedy is possible or, if opted for, could cause consumers a significant inconvenience, consumers may cancel the contract of sale and claim a part or full refund.

Consumer law provides a legal protection that is valid for two years from the date the product purchased is delivered

However, the law does not entitle consumers to claim a free remedy if the defect has been caused by the consumer or is the result of normal wear and tear. Hence, if consumers are on the look-out for extra protection when purchasing a product, they should keep in mind what the law already grants them and look for a more advantageous guarantee.

In fact, before buying an extended guarantee, buyers should take a good look at its terms and conditions to see what is actually covered. Different guarantees may cover different problems, so consumers should to check properly all the details before paying.

For instance, a beneficial extended guarantee should at least cover the product purchased for more than two years and should also cover damages caused by wear and tear and accidental damage.

Consumers should also check whether the guarantee covers parts and labour, as it may only cover the replacement of damaged parts in some cases. Hence, after buying such a guarantee, consumers may still be asked to pay for labour, including call-out charges.

Another thing to take into consideration is whether a damaged good is repeatedly repaired or replaced. Does the extended warranty allow for replacement with a new product? Does it allow for a full refund when the damaged product cannot be repaired or replaced? Naturally, the more flexible the extended guarantee is and the more it covers, the more consumers would benefit if they decide to invest in such a guarantee.

Consumers should also be aware that the terms and conditions of both commercial guarantees and extended warranties must be strictly honoured by the guarantor, or consumers may take legal action against the seller to have the guarantee adhered to.

odette.vella@mccaa.org.mt

Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.