Extended Warranties - Well I Never!

[Guest The Pom Queen]

I personally didn't know this information that was in today's paper, so by the sounds of it if you paid $2000 for a TV but it broke after the manufacturers warranty expired ie 13 months you could still claim under this regulation, is this right?

 

South Australian Consumer Affairs Commissioner Paul White said in many cases it was pointless to pay for extended warranties on items such as whitegoods and electronic equipment.

Almost all goods and services are already covered by so-called statutory warranties under laws introduced by the Federal Government in January 2011.

But only 17 complaints have been lodged under the laws in SA over the past two years, and experts say the vast majority of consumers are unaware of their rights.

This has prompted a national campaign by state authorities warning people to think twice about purchasing extended warranties - which could total hundreds of dollars.

"For a fee, you can extend the warranty on a product you've just purchased beyond that provided by the manufacturer," Mr White said.

"(But) in almost all cases, consumers are already protected by consumer guarantees, or statutory warranties, under the Australian Consumer Law.

"This means a lot of people are paying good money for rights they already get as part of the original purchase."

Mr White said the laws protect consumers against faulty goods, those that don't perform as expected and those that don't last a "reasonable time" - the same reasons people are tempted to pay for an extended warranty.

"What is a `reasonable time' is determined by such things as price and nature of the goods, any statements about the goods on any label or packaging and any representation about the goods made by the manufacturer or supplier," Mr White said.

Consumer and Business Services provided examples of protections provided to shoppers under the federal laws.

IF a mattress comes with a two-year manufacturer's warranty but the retailer tells you it will last 10 years (which consumers should request in writing), they must honour that claim.

RETAILERS are in breach of the law if they say a consumer has no rights to a refund or repair after a manufacturer's warranty expires.

RESPONSIBILITY for refunding, replacing or repairing a faulty product under warranty rests with the retailer.

GOODS outside of a manufacturer's warranty period that are faulty within a reasonable time are also the responsibility of the retailer to remedy.

RETAILERS who falsely claim an extended warranty gives greater protection than that provided under consumer law face fines of more than $1 million.

Mr White said consumers should write to the retailer if they believe an item has become faulty within a reasonable time.

And if they are not satisfied with the outcome, they should contact Consumer and Business Services, which will mediate a resolution.

The campaign comes amid court action by the Australian Competition and Consumer Commission against 11 Harvey Norman franchisees - none of which were in South Australia - for allegedly misrepresenting consumer rights.

Harvey Norman says it no longer offers the extended warranties since the new laws came into force.

Independent group Consumers SA said tens of millions of dollars would be spent by Australian shoppers each year buying extended warranties, through consumer ignorance and retailers that use them as a "marketing ploy".

"A householder could easily spend a couple of hundred dollars a year on these warranties when buying a new laptop and television or fridge and dishwasher," Consumers SA spokesman David Schomburgk said.

"People do this because they are ignorant of the consumer law and many traders aren't aware as well."

Myer is one of many large retailers offering an extended warranty on some products.

The department store's media relations manager, Jo Lynch, said customers bought the warranties for "peace of mind".

"The cost depends on the value of the product and the type of product," she said yesterday.

"Staff are trained in our products and encouraged to let customers know about the extended warranties."

Ms Lynch said staff did not tell shoppers about their rights under consumer laws.

PROTECT YOUR RIGHTS

GET written confirmation from retail staff of any claims about an item's performance or durability.

KEEP the receipt of your purchase.

IF the product fails during a "reasonable time", take it back to the retailer.

EXPENSIVE products from premium brands are reasonably expected to have a longer lifespan than cheap products.

IF a major problem emerges with the product, you can ask for a refund or replacement; if the problem is minor the retailer may choose to have it repaired.

IF you are not satisfied with the retailer's response, ask to speak to the manager or write a complaint letter.

If the retailer still refuses to help, contact Consumer and Business Services on 131 882 or visit http://www.cbs.sa.gov.au and follow the link to Consumer and Business Affairs and fill in the online Consumer Complaint Form.

 

 

 

 

Read more: http://www.adelaidenow.com.au/money/money-matters/millions-wasted-on-needless-warranties/story-e6frfmd9-1226552361109#ixzz2HgJzark7

[Maruska]

Does make sense, expensive electronics should really last more than a year. In the US, you could return stuff to the store anytime, even if it breaks after 5 years as far as you keep the receipt. It`s being abused quite a lot too by customers. We bought a tablet and paid for a "customer protection" insurance ( about 50 $) because it was expensive. My daughter tossed it into a full bathtub:arghh:, needless to say it stopped working. My husband went to the store to see if it could be repaired and guess what, they didn`t have the same type and gave us an upgraded model for free ( he did let them know what happened ). WOW I thought that if it`s out fault - as this was- we aren`t eligible for refund, surprise surprise:elvis:

[Tulip]

See, this is something I worry about. Amazon, brilliant, our Xbox broke a few months after we got it, they picked it up and replaced it in the same day! Same with my mum's Kindle, replaced it immediately.

 

Hubby bought a laptop from Harvey Norman in Aus, and it broke less than a year after he got it. Well what a bloody palava it was to get it refunded! Took it in and his mum, who is very clued up about that kind of thing, gave them an earful when they said they wouldn't refund or replace. Hubby came over to the UK before he could sort it so his mum and dad sorted it instead; TOOK OVER A YEAR! They went to court and the main director of the company showed up, too! I thought that was ridiculous when they could have just refunded, but we won eventually and got hubby's money back, but I am now dreading ever returning something in Aus!

[Diane]

I have a Kindle from Amazon - its warranty ran out about four months ago and all of a sudden, for no reason at all - it has stopped working. I literally put it down (gently) next to me and it was working, picked it up again and it wasn't. They said because the (year's) warranty expired in September, they can do nothing and I have to buy a new one! I did a bit of googling and found that this is really common at around 14/18 months old for Kindles - so looks suspiciously like built in obsolescence to me! I am still pretty angry that this has happened and Amazon will do nothing - I wonder if I should contact South Australian Consumer Affairs? (although of course Amazon is NOT in SA - I do know this!)

[LKC]

Our iPad stopped working day before yesterday, the screen just froze and it wouldn't come back to life no matter what I did. Took it to the Apple store yesterday in Sydney, and the guy had a look at it, managed to get it working and could see that there were a load of error messages, and just replaced it there and then.

 

I watched a documentary on Planned Obsolescence a while ago on SBS. Was pretty eye opening!

[JoandJon]

I have a Kindle from Amazon - its warranty ran out about four months ago and all of a sudden, for no reason at all - it has stopped working. I literally put it down (gently) next to me and it was working, picked it up again and it wasn't. They said because the (year's) warranty expired in September, they can do nothing and I have to buy a new one! I did a bit of googling and found that this is really common at around 14/18 months old for Kindles - so looks suspiciously like built in obsolescence to me! I am still pretty angry that this has happened and Amazon will do nothing - I wonder if I should contact South Australian Consumer Affairs? (although of course Amazon is NOT in SA - I do know this!)

 

The screen on my old Kindle froze after about 18 months, but when I spoke with Amazon about it they offered me a discounted price on a replacement one. Push them for at least something, and make noises on social media (e.g. their facebook page etc). Call them up and ask to speak with a supervisor, keep escalating until you get something....

[fish.01]

I have a Kindle from Amazon - its warranty ran out about four months ago and all of a sudden, for no reason at all - it has stopped working. I literally put it down (gently) next to me and it was working, picked it up again and it wasn't. They said because the (year's) warranty expired in September, they can do nothing and I have to buy a new one! I did a bit of googling and found that this is really common at around 14/18 months old for Kindles - so looks suspiciously like built in obsolescence to me! I am still pretty angry that this has happened and Amazon will do nothing - I wonder if I should contact South Australian Consumer Affairs? (although of course Amazon is NOT in SA - I do know this!)

 

They have to replace it under Australian law.

 

 

 

"Limitations. TO THE EXTENT PERMITTED BY LAW, THE WARRANTY AND REMEDIES SET FORTH ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES AND REMEDIES, AND WE SPECIFICALLY DISCLAIM ALL STATUTORY OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND AGAINST HIDDEN OR LATENT DEFECTS. IF WE CANNOT LAWFULLY DISCLAIM STATUTORY OR IMPLIED WARRANTIES, THEN TO THE EXTENT PERMITTED BY LAW, ALL SUCH WARRANTIES SHALL BE LIMITED IN DURATION TO THE DURATION OF THIS EXPRESS LIMITED WARRANTY AND TO REPAIR OR REPLACEMENT SERVICE.SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG A STATUTORY OR IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU...."

 

"FOR AUSTRALIAN CONSUMERS: Our goods come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and for compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure. Goods presented for repair may be replaced by refurbished goods of the same type rather than being repaired. Refurbished parts may be used to repair the goods." (My emphasis)

 

http://www.amazon.com/gp/help/customer/display.html?nodeId=200782640

[blossom]

This was before that law came in, but we bought a $400 tent from rays outdoors. Less than two weeks later one of the poles randomly snapped. We took it back and they pretty much said tough, no refund, no replacement and they wouldn't get it fixed. I phoned sa consumer affairs who said yes we were entitled to a refund if we wanted as it was so close, or to have it fixed. 'They are refusing, so what can I do to get them to do this?' I ask. 'Ummmm, nothing really'.

We went to all different stores and had to kick up a hell of a fuss before one of them actually agreed to replace the pole for us. Their excuse for not doing it the whole time was that 'poles are excluded from the guarantee as they are not part of the tent'! How the tent is supposed to stand up without them I have no idea.

I have never bought from rays outdoors again. The worst, and rudest staff I have ever dealt with!

[Diane]

Just wanted to say a huge thanks to fish.01 above. I have just got off a very long phone conversation with Amazon in which I quoted to them from the page you directed me to, and after speaking to several different people, they finally agreed that they would send me a replacement for my Kindle free of charge!

 

Their Customer Service people were not aware of the increased consumer rights in Australia, but agreed that sticking to their year's warranty, as per your extracts from their page, is not enforceable in Australia in the event of a major fault such as my Kindle seems to have (and from googling which is pretty common in this type of Kindle at around 14 - 18 months of age).

 

I am incredibly grateful for your help in this. Wouldn't have had a clue otherwise and would have had to shell out another $200 for a new Kindle!