Harvey Norman extended warranty provider faces ACCC undertaking

One of two extended warranty providers will have its sales practices come under ACCC scrutiny.

An industry-wide review of extended warranty providers by the Australian Competition and Consumer Commission (ACCC) has resulted in Domestic & General Services and Yoogalu – a subsidiary of Harvey Norman – agreeing to court enforceable undertakings.

The review followed a CHOICE shadow shop where 109 Harvey Norman, JB Hi-Fi and The Good Guys stores failed to acknowledge basic consumer law principles.

Domestic & General Services and Yoogalu will have to revise their brochures to include information on the existing remedies available under Australian Consumer Law, as well as provide retail staff with compliance training and monitor the practices of retailers selling extended warranties.

The conduct of salespeople selling extended warranties was called into question, says Sarah Court, commissioner at the ACCC.

"The ACCC has been concerned with the conduct of some retailers overstating the benefits of buying an extended warranty, when consumers have the free protection of consumer guarantees under the Australian Consumer Law."

Two additional extended warranty providers have agreed to enforceable undertakings since late 2015, including American-owned Virginia Surety Company and Lumley Retail Warranty.