Electricals retailers avoid inquiry on warranty selling

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The Office of Fair Trading (OFT) said the three retailers had agreed to establish a comparison website for extended warranties, which offer insurance against faulty products beyond the manufacturer's guarantee, and to provide more information in their stores via leaflets, including details about alternative policy suppliers.

The OFT will now consult on whether to accept their proposals, instead of referring its probe into the market to the Competition Commission for a detailed investigation. Ann Pope, a director in the OFT's goods and consumer group, said: "Millions of extended warranties are sold in the UK each year and we remain concerned that, despite recent improvements, this market does not work as well as it could for consumers."

In its third such study in just over a decade, the OFT found that only a quarter of consumers shopped around for extended warranties, which is low compared with many other insurance products. It also concluded that competition remained limited by the retailers' "point of sale" advantage in selling extended warranties in stores.

Dixons Retail - which owns Currys and PC World - Argos and Comet have said they will establish, maintain and publicise an extended warranties comparison website, which the OFT hopes will go live before the end of the year.

The three retailers have also agreed to conduct regular independent "mystery shopping" exercises to help ensure consumers are getting accurate data from their staff. The watchdog expects to reach a final decision on these undertakings in the spring.