EXTENDED WARRANTIES MONOPOLY INQUIRY: REVISED STATEMENT OF HYPOTHETICAL REMEDIES
Consultation on possible remedies The Competition Commission (CC) has today sent a letter to domestic electrical goods’ retailers, and others concerned, to consult them on alternative packages of possible remedies aimed at improving competition in the market for extended warranties (EWs) on domestic electrical goods (DEGs). On 20th May the Commission sent out a “remedies letter” consulting on nineteen possible remedies. Since then the Commission has considered the responses they received, and has had hearings with a number of the parties. In the light of these consultations the Commission has dropped or amended certain remedies and has brought together the remaining remedies that it wishes to pursue into two possible packages. Today’s letter offers the parties an opportunity to comment on these packages e.g. in respect of the most suitable periods for the validity of quotes or delayed purchase rights. This, second, “remedies letter” is attached. It has also been published on the CC’s website
Consumers deserve better information on the alternatives, time to choose and better value The packages of possible remedies aim to give · consumers the information they need to make an informed choice of whether they want an extended warranty, what type of warranty would best suit their needs, and which providers offer the best deals; · consumers time to reflect, away from the rush and pressure of the store, on whether an EW they are being offered is really what they need, and is good value; or whether an alternative provider has a better offer; · alternative providers of EWs time to get their offer on the table, so that consumers are given a better choice, and a real opportunity to shop around; and · retailers an independently managed and enforced code governing selling practices and the terms and conditions in EW contracts. Information, and the opportunity and time to make a genuine, transparent, choice will, the Commission believes, stimulate competition in the market for EWs and lead to significant improvements in value for consumers.
The full document is available in the downloads pdf section.
Looks as if competition will be opened up on EWs then for sure now.