Business & Finance Finance

Action On Warranties Vowed By Retailers In Britain

The transparency of the extended warranties market will be improved it is the promise which was made by three largest electrical retailers of UK to the competition watchdog. This improvement in the transparency has been decided in order to avoid huge investigation by regulators. On Tuesday, The Office of Fair Trading (OFT) said that consumers may not be acquiring the proper value of money, which has been suggested by its third study that was done in just over a decade of 1 billion pounds a year extended warranties market.

Dixons (DXNS.L), Comet and Argos (HOME.L) have started taking the steps to address the watchdogs concern. Legal undertakings have been offered by them in order to improve the information provided by them to shoppers. This information also includes the availability of alternative warranty providers. For making the shopping easier, they also vowed to establish, maintain and promote an extended warranties comparison website. Besides, mystery shopping exercises were promised by them in order to provide the appropriate information to the shoppers.

A lot of criticism of extended warranties for electrical goods by British consumer groups has long been witnessed. But, as a matter of the fact, it is highly profitable for retailers. The argument of consumer groups is that their prices prove very uneven to the cost of the electrical item covers and probability of the requirement of repairing of an item as reliability is increased by technological improvements. Critics indicate that one-year guarantees on products are already rendered by most of the manufacturers. In addition, consumers also get the insurance covers for breakages on the standard household goods. Want to buy some electronic products dont have cash apply with 12 month loans no credit check and get easy funds and shop what you want.

It has been decided by OFT that consumers and interested parties will be consulted now whether the undertakings should be accepted in place of referring the market to the competition commission in order to accomplish detailed investigation. It is being expected that the final conclusion will be made in spring. Ann Pope, the director in the OFTS goods and consumer group, said, Millions of extended warranties are sold in the UK each year and we remain concerned that, despite recent improvements, this market does not work as well as it could for consumers. If these undertakings are accepted by the OFT it would allow us to address the competition concerns more quickly and also reduce the burdens of further, detailed investigation, He further said.

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