Is paying for an extended warranty worth it? Not according to lawyers that have just launched a major class action legal case against JB Hi-Fi. Maurice Blackburn Lawyers claims that the electronics retailer has been selling its customers on "worthless" extended warranties for over ten years. The claim, lodged with the Victorian Supreme Court last week, alleges that JB Hi-Fi's extended warranties were of little or no value, because customers already had the same rights for free under Australian consumer laws. A 2023 survey by Choice magazine found that 32 per cent of respondents had bought extended warranties at some point in their lives, often after being pressured by aggressive sales techniques. The magazine separately also found that sales people at major Australian retailers such as The Good Guys, Harvey Norman and JB Hi-Fi misrepresented consumer rights by saying buyers would have no recourse if a purchase stopped working after the manufacturer's warranty period ended. Maurice Blackburn Lawyers principal Miranda Nagy said her class action would seek refunds for JB Hi-Fi customers who bought the expensive policies. On the company's sales website as of Monday, JB Hi-Fi was offering a two-year extended warranty on products such as a Lenovo laptop for $139.80. "These warranties are in most cases little more than a junk add-on to consumers' purchase of the household goods they actually want," Ms Nagy said. "They add substantially to the cost. "Our case alleges they added nothing meaningful to the strong rights for repair, replacement or refund under the Australian consumer law rights that consumers already enjoy." The class action alleges that JB Hi-Fi used misleading or deceptive conduct or unconscionable conduct in selling the extended warranties. The allegations include that JB Hi-Fi misled customers by claiming the extended warranties: In a statement released on Monday, stock market-listed JB Hi-Fi said it intended to "vigorously defend the proceedings". "JB Hi-Fi takes compliance with its legal obligations very seriously, and considers that it has complied with relevant laws at all times," the statement read. Consumers that purchased extended warranties from JB Hi-Fi are eligible to join the class suit.
