Don't be swayed by a free guarantee

The offer of a free guarantee may sound appealing. But do you actually get any extra protection?

John Lewis recently had its knuckles rapped for advertising Apple computers with a ‘free two-year guarantee’. This is because the Advertising Standards Authority believed the guarantee was always part of the computer’s price so could not be described as ‘free’.

Dodgy advertising aside, you probably think it’s a good thing to get a free guarantee. It’s certainly not to be sniffed at, but don’t let that magic word influence you when you hit the high street.

Typically, guarantees are given by manufacturers though there’s no legal obligation to provide one.They're appealing to the manufacturers for a number of reasons. Firstly, they can help encourage sales, as the consumer's confidence is boosted by this 'additional protection'. But an added bonus is that you have to provider personal information when you register the product you've bought, and that information can be very useful to the marketing bods.

The law defines guarantees as a commitment to a consumer to refund, replace or repair defective goods free of charge within a specified period.

Decision time

That all sounds positive and reassuring but the main thing a guarantee really gives you is a choice of who to complain to.

When you buy something, you enter into a contract with the retailer and automatically get ‘statutory rights’ under the Sale of Goods Act 1979. If something is wrong with the quality of the goods or they’re not fit for purpose or they don’t meet their description, you have a right to request a repair, replacement or refund. Sound familiar?

So if a product with a guarantee goes wrong, you have two options. You can either call the manufacturer or you might just want to pop in to the shop. If it’s the latter, don’t let a shop turn you away saying it’s the manufacturer’s responsibility. A guarantee gives you rights in addition to your statutory rights and doesn’t limit them in any way.

Six months and counting

Your statutory rights are particularly consumer friendly if an issue arises within six months of your purchase. In this timeframe, the retailer is automatically liable for any faults which develop.

After six months, it’s up to you to prove that any fault was not down to misuse or wear and tear, although factors such as the price you paid, how long you’ve had the item and how long it should reasonably last will also be taken into account.

Expiration

While guarantees have a definite expiry date - usually up to two years - you can bring a claim in a Court under the Sale of Goods Act for up to six years after buying something.

However, bear in mind the fault has to develop within a ‘reasonable’ time and it may not be reasonable for your item to last up to six years.

What constitutes ‘reasonable’ is up for debate. You might have spent £1,000 on a boiler expecting it to last 20 years. If it breaks within six years, you’d have a stronger case than if you’d bought a torch from a pound shop which went wrong after a few months.

There has to be this flexibility, but unfortunately this is where arguments with a retailer may arise.

Extended guarantees

So the Sale of Goods Act may mean you have a fight on your hands. But the rights exist automatically and they don’t cost anything.

So is it ever worth paying for extended guarantees? Also referred to as extended warranties, they’re often pushed with electrical or white goods as an essential add on if things go wrong.

Personally, I prefer to take my chances with my statutory rights as I don’t want to spend money on something I get for nothing under the law. I also use my credit card which gives me extra protection when something costs more than £100.

However, if you’re still tempted by persuasive sales people, check the small print first. Is the warranty generous in what it covers? What are the exclusions? Do you have to pay extra for labour or transport? And what will it actually cost you over time compared to the item itself?

Don’t be bullied into signing up there and then. If you want more security, research a standalone policy as well and check out the tips in Watch out for this Christmas gift shopping rip off!

What do you think? Have you successfully enforced your statutory rights? Do you think extended warranties are a waste of money or a good idea? Share your views with your fellow lovemoney.com readers in the box below.

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