Christmas shoppers: Ripped off?

The consumers' minister has set out plans to clamp down on the mis-selling of extended warranties.

Gerry Sutcliffe said on Wednesday that changes would be put in place before the Christmas shopping season begins.

The government wants to give customers more information on repair and replacement contracts before they opt to take out policies on expensive electrical goods.

Sutcliffe also said he wants to stop heavy-handed sales techniques that push purchasers towards spending more money on a product than they had intended.

The Department of Trade and Industry published a consultation document on the subject in time for responses to feed into directives it will put out in the autumn.

The paper proposed that shops clearly show the price of warranties alongside goods in stores and in adverts.

It also suggested that consumers get 45 days to cancel a policy, including a written reminder of this right and the right to cancel at any time and receive a pro-rata refund.

Similarly the department said a customer should get 30 days to take out a warranty if they choose not to at the time of purchase.

"Our position is clear: the market in extended warranties is not working for the benefit of consumers, and change is necessary," Sutcliffe said.

"The consultation document seeks views on a draft statutory instrument (SI) which helps redress the balance in favour of the consumer. We are, of course, open to ideas if interested parties think this SI can be improved upon.

"Recognising the importance of the Christmas shopping period for warranty sales, we intend to introduce the necessary changes by the end of November."