Friday, February 24, 2006

Great Cons of Britain Pt 2 - Extended Warranties


On the British High Street, you’ll more than likely come across a Dixons store. Dixons have been around for donkey’s years after they started out as a camera shop in the 1930’s. Today, they are without doubt Britain’s largest retailer of consumer electronics.
Not only that, but they were also recently voted
Britain’s 5th worst retailer. The main reason for that, amongst other things, is their fascination with extended warranties.

Whenever you buy a product, you are covered for faults for a ‘reasonable’ period of time. What’s is defined as reasonable is open for debate, but typically most places say 12 months. That said, there are European laws that say that you could be covered for much longer than that depending on what you bought.
The retailer has to give you this warranty at no extra charge, and it’s included in the price.

Now some boffin at Dixons HQ decided that he could get people to pay for this ‘freebie’, and so introduced the infamous “extended warranty”.

Basically, the spotty salesman behind the counter says “Here’s you camcorder, that’ll be £300. Would you like our super fantastic 300 year extended warranty with that?” Before you can say ‘no’, he’s already filled the form out and at the same time, earned himself a decent commission as well as added another £35 to your bill.

Dixons, as well as other places, got into a bit of bother over this and now have to do change a whole load of minute details to stay on the right side of the law. That said, they still make an absolute killing on the ignorant and the stupid who don’t realise they are being taken to the cleaners. Effectively, whenever some asks if you want an extended warranty, they are asking “Do you want to pay for something that you normally get for free by right?”

I despair sometimes at the British public, really I do

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