Consumers weren't told about their rights.
Consumer NZ is pleased the Commerce Commission has made an example of vacuum cleaner retailer Godfreys over its selling of misleading extended warranties. We don't believe extended warranties offer any benefits over what the Consumer Guarantees Act (CGA) already provides.
Godfreys was fined $48,000 in Manukau District Court after earlier pleaded guilty to 10 charges relating to its extended warranties, which didn't include key information required by the Fair Trading Act. Godfreys sold more than 3000 non-compliant extended warranties for over a year despite a new law relating to extended warranties being introduced in June 2014. The agreements didn't summarise the customer's rights under the CGA, including how people had 5 days to cancel the agreement.
Warranties for products costing $200-599 were $49 until August 2015 and then $69 after that. Warranties for products over $600 were sold for $99.
Consumer NZ CEO Sue Chetwin said the $48,000 fine should put other retailers on notice that if they are hawking extended warranties they must tell consumers what their rights are.
Godfreys offered customers the opportunity to cancel their non-compliant extended warranty contract. You should contact the retailer if you didn't receive the offer.