UK prepares to curb sale of extended warranties

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LONDON, Sept 30 (Reuters) – The British government begins scrutiny of a competition report on Tuesday likely to spell trouble for electrical goods retailers like Dixons Group Plc whose profits rely heavily on sales of warranties.

Some analysts expect the report to recommend a clamp down on the sale of warranties, estimated to generate as much as half of the profits of Dixons and other leading retailers such as Comet, owned by Kesa Electricals.

Full story from Reuters

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