EXTENDED WARRANTIES ON DOMESTIC ELECTRICAL GOODS: COMPETITION COMMISSION INVITES EVIDENCE

The Office of Fair Trading (OFT) has asked the Competition Commission to investigate the market for extended warranties on domestic electrical goods. The referral follows a nine month study by the OFT which found that competition in the market did not appear to be working effectively and that consumers were not adequately informed or protected.

The Commission will look at:

whether, and in whose favour, a monopoly situation exist
whether that situation is being exploited or maintained
whether any facts operate, or may be expected to operate, against the public interest and , if so
any remedies which the Commission considers would address these detriments

The Commission will report to the Secretary of State in 12 months. The report will be published later.

The Commission would like to hear from any person or organisation who has information or views on these matters by 22 July 2002. Please write to:

The Reference Secretary (Warranties)
Competition Commission
New Court
48 Carey Street
London WC2A 2JT

Or email: exwarren1@competition-commission.gsi.gov.uk

Notes to Editors

The reference was made under section 2 of the Fair Trading Act 1973 (see OFT Press Release PN 40/02).
Extended warranties are contracts which cover consumers for the cost of any repairs or replacements within a specified period, typically four years, beyond the one year normally covered by manufacturer’s, retailer’s or importer’s guarantees.
A copy of the OFT’s report, Extended warranties on domestic electrical goods can be found at www.oft.gov.uk
Further information can be found on the Commission website at www.competition-commission.org.uk/inquiries/warranty.htm
Enquiries should be directed to: Francis Royle, Press Officer, tel: 020 7271 0242

Group Members

Dr. Derek Morris (Chairman)
Christopher Clarke
Dr. Diane Coyle
Peter Hazell
Dr. Elizabeth Monck