Electrical stores to revamp warranties after OFT report

ELECTRICAL retailers are set to hold a shake-up of their warranty schemes after a consultation with the Office of Fair Trading.

The promised measures, which have been agreed with Dixons, Comet and Argos - the largest providers of such warranties - include improving the information these retailers provide to shoppers and the launch of a comparison website.

They will also carry out regular independent mystery shopping exercises as part of a drive to prevent consumers being ripped off.

The undertakings agreed with the OFT will be the subject of consultation before the watchdog decides whether to refer the market to the Competition Commission for detailed investigation.

It is concerned that only a quarter of consumers shop around for warranties, mainly because retailers have a point-of-sale advantage in being able to sell warranties at the same time as they sell the goods.

There is also a lack of relevant information for shoppers to make an informed decision about whether the warranty is value for money, it added.