When consumers buy a product, whether it is a new appliance or the latest gadget, they usually hope it lasts for a long time so they get the best possible value for their money. But one cannot know for sure how long a product will last.
Consumers can only put their mind at rest if the goods bought are covered with a commercial guarantee that provides them with a suitable remedy should the product turn out to be defective.
Extended warranties may provide additional protection when problems arise after the standard guarantee expires. However, this additional protection usually comes at a cost and may not provide all the benefits consumers think they will have when buying such a guarantee.
It is in consumers’ best interest to gather information about the real benefits the warranty offers before committing to such a purchase.
The first question to ask is what the extended warranty covers: does the guarantee only cover mechanical breakdowns or does it also cover wear and tear and accidental damages?
Special attention should also be given to the remedies consumers may opt for when making a claim under the guarantee: does the guarantee only repair the defective good or can the consumer request a replacement?
Consumers should also check if the guarantee includes any additional costs, such as transport costs or a call charge. When such costs apply, these should be clearly wirtten in the guarantee’s terms and conditions.
It is also important to check if the extended warranty covers both parts and labour. If it only covers replacement of the damaged parts, consumers should check the rate per hour the company charges for repairs.
Consumers should also take into account other factors such as the cost of the warranty, the value of the product it covers and the cost of replacing it outside warranty. An extended warranty is usually worth buying if it does not have many restrictions of use and when the product it covers is expensive to repair or replace.
Before deciding whether or not to purchase an extended warranty, it is the consumers’ responsibility to shop around and compare products with different standard warranties. While comparing brands,
consumers should check what different sellers are offering as standard guarantees. When carrying out such comparisons consumers may discover products with standard guarantees that provide the same benefits as the extended guarantees that some sellers are requesting extra payment for.
When comparing guarantees and products, consumers should keep in mind the two-year legal protection they are automatically entitled to when purchasing goods. The law entitles consumers to request a free-of-charge remedy if the product purchased does not conform to the contract of sale.
If this happens, the defective or non-conforming goods must be repaired or replaced free of charge by the seller. If these two remedies are either not possible or would be inconvenient to consumers, then the latter may claim a part or full refund of the money they paid. So an extended warranty should only be purchased when it provides more protection to consumers than what the law provides.
Finally, it is important for consumers to remember that extended warranties are optional, and they should not be pressured by sellers to buy them. If consumers decide to make such a purchase, it is their responsibility to ensure that all the terms and conditions of the promised guarantee are provided in writing.
If guarantees are not honoured by traders, consumers may take action by lodging a complaint with the Office for Consumer Affairs at the MCCAA.
WWW.MCCAA.ORG.MT