EXTENDED WARRANTIES ON DOMESTIC ELECTRICAL GOODS: COMPETITION COMMISSION APPOINTS NEW MEMBERS

The Competition Commission (CC) announced today the appointment of two new members to the group that will carry out the inquiry into extended warranties on domestic electrical goods.

Dr Derek Morris, Chairman of the CC will now lead the investigation. He takes the place of Deputy Chairman, Denise Kingsmill, who is standing down owing to a possible conflict of interest. Another member, Christopher Smallwood, is also standing down. Christopher Clarke will now join the remaining three members previously appointed (Dr Diane Coyle, Peter Hazell, and Dr Elizabeth Monck).

Soon after the appointment of the group it became apparent the investigation could involve a large number of parties concerned with electrical retailing, manufacturing and insurance. As is common at this early stage of the inquiry, the members' outside interests were again discussed with them to ensure there was no possibility of conflicts arising. Though neither member had any involvement with major retail, manufacturing or insurance operations, it was considered that Mrs Kingsmill's design consultancy with MFI, the furniture retailer, and Mr Smallwood's work within the banking sector might have led to possible conflicts. Neither member has attended any meetings nor received any papers in connection with the inquiry.

Notes to Editors

1. The reference was made under section 2 of the Fair Trading Act 1973 (see OFT Press Release PN 40/02).

2. Extended warranties are contracts which cover consumers for the cost of any repairs or replacements within a specified period beyond the period covered by manufacturer's, retailer's or importer's guarantees.

3. A copy of the OFT's report, Extended warranties on domestic electrical goods can be found at www.oft.gov.uk

4. Apart from the Chairman, all CC members are appointed on a part-time basis and are free to pursue other interests.

5. Further information can be found on the Commission website at www.competition-commission.org.uk/inquiries/warranty.htm

6. Enquiries should be directed to: Francis Royle, Press Officer, tel: 020 7271 0242