Since 6 April 2005, retailers who supply extended warranties on domestic electrical goods must comply with specific requirements.
You must display the price of the extended warranty next to the price of the goods. You must also make it clear that the purchase of the warranty is optional.
Other information you must provide includes:
- explaining consumers' statutory rights
- that warranties can be obtained elsewhere and that customers' household insurance may be relevant
- that the warranty does not have to be bought at the same time as the goods
- details of any cancellation rights
- what protection the consumer will have if the warranty provider goes out of business
- whether the warranty will come to an end if a claim is made
If you offer a warranty costing more than £20 to an in-store customer, you must provide a written price quote including similar details.
For warranties lasting over a year, consumers have the right to cancel within 45 days. Consumers who cancel after more than 45 days are entitled to a pro rata refund.