When purchasing certain types of goods, such as electronics and electrical appliances, consumers are often offered the possibility to purchase an extended warranty.

This kind of warranty offers extra protection just in case the product bought stops functioning after the standard guarantee expires.

Whether such guarantees are advantageous to consumers depends mainly on how much the extended warranty costs, what defects and damages it covers and what kind of remedies it offers.

Before paying extra money for an extended warranty, consumers should be aware of the protection they have for ‘free’.

Usually, electrical and electronic goods are sold with a commercial guarantee included in the original price. Hence, it is advisable that consumers should first shop around for products which have the best commercial guarantees.

When shopping around, consumers may find similar products that offer a free commercial guarantee which is as beneficial as the extended warranty.

Furthermore, consumers should be aware that there is also a law protecting their purchase if the product results defective or does not conform to the contract of sale.

Does it offer new for old or just repair? If it offers only repair, consumers should check that both labour and parts are included

If this is the case, the seller must provide a remedy which can take the form of free repair or replacement. When these two remedies are not possible or may cause a significant inconvenience to consumers, then part or full refund of the money paid by the consumer, may be opted for.

Legally, the time frame for these remedies is two years from date of delivery of the product purchased. Hence, an extended warranty should only be purchased when it provides additional protection to the law and standard commercial guarantee.

Prior to buying an extended warranty, consumers are advised to carefully read its terms and conditions, with special attention given to the benefits it offers.

Does it offer new for old or just repair? If it offers only repair, consumers should check that both labour and parts are included.

If the goods in question are going to be used frequently, the extended warranty should cover wear and tear and ideally also accidental damage.

An extended warranty is usually worth its price if the product it covers is very expensive. It is advisable for consumers to weigh the cost of the extra guarantee against the cost of replacing the item or repairing it outside the guarantee.

The terms and conditions of commercial and extended warranties have to be clearly written on the guarantee’s document. These conditions must be honoured by the guarantor and cannot be changed once the guarantee is given to the consumer.

When a trader refuses to observe the guarantee, consumers may file a complaint with the Office for Consumer Affairs so the necessary legal action can be taken.

odette.vella@mccaa.org.mt

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

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